Stocks fall early, then climb
(AP) NEW YORK - U.S. stocks opened lower Friday but turned around at late morning, putting the Dow Jones industrial average on track for its first gain this week.
Stocks sank after a disappointing government report about orders for durable goods such as computers and machinery. All three major stock indexes declined modestly. The Dow was down 30 points at its low.
But just before 11:45 a.m. EDT, the Dow was up 70 points to 13,128 and climbing. The Standard & Poor's 500 index was up six at 1,408, and the Nasdaq composite index was up 13 to 3,066.
All 10 broad industries within the S&P were higher, with telecommunications stocks rising the most.
It was not clear what turned the market around. Besides the durable goods report, news was sparse. Leaders of Germany, France and Greece met in Berlin to discuss an ongoing bailout plan for stricken Greece.
It was still likely to be the first down week for the Dow and the S&P 500 after six weeks of gains. As usual in August, the market has been quiet. But the economic reports that have trickled out are less than positive.
Claims for unemployment insurance rose again. Chinese manufacturing fell to a nine-month low. And speculation that the Federal Reserve might step in with more help for the economy, a hope that investors clung to at midweek, dissipated quickly.
The price of crude oil fell for a second day. Demand for oil, and thus its price, falls when analysts expect the economy to slow because oil powers manufacturing and other industries.
Europe, though quiet, still showed signs of tension. Britain reported that its economy shrank in the second quarter, the latest confirmation that the country is still in recession.
The Greek prime minister met with his German and French counterparts to discuss Greece's bailout. Germany is paying much of the bill and wants Greece to cut spending and take other steps if it wants to continue getting the money. Greek Prime Minister Antonis Samaras said Greece needs "time to breathe."
Durable goods orders, reported by the Commerce Department, fell last month after excluding gains from the transportation category. That sector is traditionally volatile, and in July it rose largely because of orders at one company, Boeing.
That's an important measure of economic health because it shows whether businesses are willing to spend to expand or improve.
Software maker Autodesk (ADSK) skidded more than 13 percent, falling $4.88 to $30.83 after weaker-than-expected second-quarter results.
Drugmaker Eli Lilly (LLY) jumped more than 4 percent, rising $1.75 to $44.15, after reporting promising signs about a possible treatment for Alzheimer's disease.
The Madison Square Garden Co. (MSG) also jumped more than 4 percent, rising $1.86 to $42.11, after the entertainment company reported that profits tripled in the fiscal fourth quarter.