U.S. Stocks Climb As Oil Drops And Data Better Than Forecast

NEW YORK (MarketWatch) -- U.S. stocks staged a rebound Friday, as investor concerns about the economy eased after the price of crude declined and the government's durable-goods report for June showed an unexpected rise in demand for big-ticket items.

"I think it's great that we have positive economic data, and I think it's great that there is no tape bond in the financial sector. But the biggest driver of this market today is the price of a barrel of oil, which continues to be constructive to the market," said Art Hogan, chief market strategist at Jefferies & Co.

"If we can close up on a Friday in the summertime, now that would be something to write home about," Hogan added.

The Dow Jones Industrial Average rose 45 points to 11,394, with two-thirds of its 30 components advancing. Alcoa Inc. was up the most in recent action, gaining 2.7%.

General Motors Corp. proved the greatest weight on the blue-chip index, with shares of the automaker lapsing 4%.

The S&P 500 gained 6 points to 1,259, with energy leading sector gains after a bruising week.

The technology-laden Nasdaq Composite climbed 25 points to 2305.

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, better than the drop of 0.3% many economists predicted. .

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 nearly 15% after the maker of networking gear said third-quarter sales would come in as much as 5% higher than analyst estimates.

Volume on the New York Stock Exchange hit 520 million, with advancing stocks ahead of those declining 9 to 5. On the Nasdaq, 367 million shares traded, and advancers outpaced declining issues 9 to 4.

Home base

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 $1.79 lower to $123.7 a barrel. .

"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.

Standouts

Shares of Crocs Inc. lost 45%, plunging after the footwear maker slashed its outlook late Thursday on soft demand for its brightly colored sandals. .

"They saturated the market and will suffer the fate of all single-product, publicly-traded companies and go under the waves," said Hogan of Crocs.

Delta Air Lines Inc. advanced 8% as the airline was reportedly upgraded by Merrill Lynch to buy.

And, Wachovia Corp. fell 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 nearly 1% as insurers lost ground. .

Results from Samsung Electronics and National Australia Bank weighed in Asia, with Tokyo's Nikkei 225 benchmark retreating 2%.

By Kate Gibson