U.S. Stocks Climb After Economic Data Better Than Forecast
NEW YORK (MarketWatch) -- U.S. stocks staged a rebound Friday morning, as investor concerns about the economy eased after the government's durable-goods report for June showed an unexpected rise in demand for big-ticket items.
The Dow Jones Industrial Average rose 33 points to 11,382, with 19 of its 30 components offering an opening rise.
The S&P 500 gained 3 points to 1,256., with energy leading sector gains after a bruising week.
The technology-laden Nasdaq Composite climbed 15 points to 2,295.
The data on orders, shipments and inventories of big-ticket goods "revealed surprising strength in ex-transportation orders with a 2.0% June gain that caught the market's eye," said analysts at Action Economics.
New orders for durable goods climbed 0.8% last month, the Commerce Department reported, far better than the drop of 0.3% predicted by many economists. .
Consumer discretionary shares also edged up, with home-builders, including Pulte Homes Inc. , among the larger gainers.
Telecommunication services and financials led sector declines among the S&P's 10 industry groups.
Shares of Juniper Networks Inc. rallied 14% after the maker of networking gear said third-quarter sales would come in as much as 5% higher than analyst estimates.
Also on the economic-data front, U.S. foreclosures in the second quarter more than doubled from the year-earlier quarter and rose nearly 14% from the previous quarter, according to RealtyTrac.
And, consumer sentiment picked up in July, albeit at a relatively low level, according to a media report. .
On the New York Mercantile Exchange, oil futures traded $2.09 lower to $123.4 a barrel, while the dollar fell against the British pound and the euro.
"Crude has stabilized and the possibility of some corrective upside action from its low at $123 a barrel support may also be responsible for some concerns in the equity space," said Tom di Galoma, head of Treasurys trading at Jefferies & Co.
Early standouts
Shares of Crocs Inc. lost 42%, plunging after the footwear maker slashed its outlook late Thursday on soft demand for its brightly colored sandals. .
Delta Air Lines Inc. advanced 5% as the airline was reportedly upgraded by Merrill Lynch to buy.
And, Wachovia Corp. fell almost 6%. Late Thursday, the bank announced that its chief financial officer, Thomas Wurtz, was stepping down.
Also in the spotlight, Honda Motor Co. reported a stronger-than-forecast 8% profit growth for the first quarter by reducing sales incentives in North America and trimming costs.
In London, the FTSE 100 fell 1% as insurers lost ground.
Results from Samsung Electronics and National Australia Bank weighed on Asia overnight, with Tokyo's Nikkei 225 benchmark retreating 2%.
By Kate Gibson