TIM PARADIS AP Business Writer | Posted: Friday, July 25, 2008 12:00 am
NEW YORK - Stocks rose modestly Friday after the government reported that orders for big-ticket items rose at the fastest pace in four months, sharply higher than analysts expected.
The Commerce Department said orders for durable goods rose 0.8 percent last month, far better than the 0.4 percent decline economists expected. The reading appears to be easing some of the market's concerns after a big sell-off Thursday in response to a weak housing report and worries about the financial sector.
The durable goods report was the best showing since a 1.1 percent rise in February and reflected strength in demand for heavy machinery, primary metals such as steel and even a slight rebound in the beleaguered auto industry.
In the first hour of trading, the Dow Jones industrial average rose 5.78, or 0.05 percent, to 11,355.06.
Broader stock indicators also rose. The Standard & Poor's 500 index rose 3.27, or 0.26 percent, to 1,255.81, and the Nasdaq composite index advanced 10.66, or 0.47 percent, to 2,290.77.
Bond prices moved lower as investors were expected to shift back into stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 4.03 percent from 4.00 percent from late Thursday.
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