U.S. Stocks Turn Higher as Recession Fears Decrease

• IBTimes RSS
• Print
• E-Mail
• digg
• Del.icio.us

Investors snatched up technology shares on hopes that business spending will hold up, with shares of Oracle Corp, the world's second-largest software maker, up 4.1 percent. Amazon.com Inc. rose the most in three weeks after Goldman said the largest Internet retailer may grow at least 20 percent over the next 5 to 10 years.

Microsoft fell 1.3 percent after announcing its re-entered talks with Internet portal Yahoo on a deal that would not involve a full acquisition. The software giant had canceled its offer for Yahoo just two weeks ago. Yahoo shares were recently up 1 percent.

The S&P 500 added 13.73 points, or 1 percent, to 1,439.08 at 12:32 p.m. in New York. The Dow Jones Industrial Average increased 136.05, or 1.1 percent, to 13,122.85. The Nasdaq Composite Index gained 18.93, or 0.8 percent, to 2,547.78.

Lowe's Cos., the second-largest home- improvement retailer, reported an 18 percent drop in first-quarter profit on Monday and lowered its outlook for the year as the retailer faces a challenging sales environment amid a national housing slump. The retailer's shares dropped 67 cents to $24.22.

Intel Corp., the world's largest chipmaker, added 20 cents to $25.20.

The energy sector also advanced as crude oil prices rose 77 cents, or 0.6 percent, to $127.09 a barrel. Exxon, the biggest U.S. oil company, added $1.13 to $93.80. Chevron, the second-largest, gained $1.98 to $102.36.

Concerns about the impact of surging energy prices on consumers were slightly eased by an economic report suggesting the economy remained weak but was not in recession.

The Conference Board's index of leading economic indicators, which attempts to forecast turning points in the economy, rose 0.1 percent in April, matching March's gain after falling for the five prior months.