Rally continues as stocks edge mostly higher; Nasdaq streak ends
NEW YORK -- Most stocks rose Friday, extending a two-week jump that has added 11% to the market's major indicators, lifting the Dow Jones industrial average and the Standard & Poor's 500 to fresh 8-month closing highs.
But disappointing results from Microsoft and Amazon.com hit technology shares, dragging the Nasdaq composite index lower and halting its 12-day run-up.
The reports underscore the prevailing theme of earnings season thus far: Companies have been able to report better-than-expected earnings in large part because of aggressive cost-cutting measures, not stronger sales. Revenue at some companies is still sagging as consumers forgo spending to shore up their savings.
Still, investors have taken the improved results as confirmation that the economy is healing and that a turnaround is possible by the end of the year.
"We are of the opinion that it may not be a straight line, but things are going to continue to get better," said Keith Walter, portfolio manager at Artio Global Equity Fund.
Investors are betting on an improvement. On Thursday, news that existing home sales rose in June for the third straight month helped pushed the Dow over 9,000 for the first time since January.
In just nine days, the Dow and the S&P 500 index have climbed 11%, reigniting a rally that carried the market 40% higher this spring. Stocks gave up some of those gains last month as still-growing unemployment and weak consumer confidence fed doubts about the economy's recovery.
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