In this June 10, 2010 photo, a broker works the trading floor at the New York Stock Exchange, in New York. U.S. stocks look to open higher Tuesday, June 15, as European markets rebound from an early slide and the euro strengthens.(AP Photo/David Karp)
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NEW YORK (AP) -- Industrial and technology stocks pulled the market sharply higher Tuesday after Boeing Co. said it was boosting production and an industry group forecast that demand for computers would increase.
The Dow Jones industrial average rose about 150 points in afternoon trading. The Dow and other major stock indexes rose more than 1.5 percent.
The advance in U.S. stocks was broad, but industrials made some of the biggest moves. Boeing Co. rose 3.3 percent after increasing production of the 737 jet. Boeing said customers are adding to existing orders and placing new ones. Illinois Tool rose about 1.4 percent after it raised the lower end of its fiscal second-quarter earnings target.
"We're still seeing factories and manufacturing help provide a little stimulus for the economy here," said Michael Church, president at Addison Capital Group in Philadelphia.
Technology stocks got a boost after research firm International Data Corporation said it expects the personal computer market will grow 20 percent this year. Chipmaker Intel Corp. climbed 2.4 percent.
A gain in the euro and a drop in the dollar signaled that traders around the world are less worried that debt problems in Europe will disrupt a global recovery. The euro rose to $1.2319 after climbing Monday.
The falling dollar boosted prices of commodities including oil. Commodities become more affordable for overseas buyers when the dollar falls. The rise in oil lifted energy stocks. Oil services company Halliburton Inc. rose 5.4 percent.
Traders dumped shares of Best Buy Co after the electronics chain posted weaker-than-expected earnings. The stock fell 6 percent.
The big gains came a day after Moody's cut its rating on Greece's debt to "junk" status. That helped a broad advance in stocks fade by the end of trading Monday. The late slide also came after the Standard & Poor's 500 index failed to push above its average close of the past 200 days. That's a key technical level watched by traders. Trading below that level is seen as a sign of weakness in the market.
Tuesday's rally extends the choppy trading that has become a fixture in the market since major stock indexes climbed to their 2010 peaks in late April. Stocks have been logging big swings since then, a sign that traders are uncertain about whether the economy will continue to recover.
In afternoon trading, the Dow rose 149.87, or 1.5 percent, to 10,340.76. The broader S&P 500 index rose 17.66, or 1.6 percent, to 1,107.29, and the tech-dominated Nasdaq composite index rose 45.09, or 2 percent, to 2,289.05.
Bond prices fell and drove up interest rates after stocks climbed. The yield on the benchmark 10-year Treasury note rose to 3.31 percent from 3.26 percent late Monday.
Crude oil rose $1.38 to $76.50 per barrel on the New York Mercantile Exchange.
Boeing climbed $2.15, or 3.3 percent, to $66.97 and Illinois Tool rose 62 cents, or 1.4 percent, to $46.27.
Intel rose 50 cents, or 2.4 percent, to $21.39, while Halliburton rose $1.29, or 5.4 percent, to $25.31.
Best Buy's fiscal first-quarter net income and revenue fell short of analysts' expectations but the company reiterated its fiscal 2011 forecast. The report brought concerns that consumers will cut spending and hurt a U.S. recovery. Best Buy fell $2.46, or 6 percent, to $38.59.
Shares of BP PLC rose 98 cents, or 3.2 percent, to $31.65 after falling 10 percent Monday when concerns grew about stepped-up political pressure in the U.S. to set aside money for costs related to the Gulf of Mexico oil spill that began April 20 when a rig operated by BP exploded. On Tuesday, credit ratings agency Fitch cut its rating on the oil company's debt. Fitch cited concerns about rising costs tied to the spill.
The Russell 2000 index of smaller companies rose 8.91, or 1.4 percent, to 661.18.
Five stocks rose for every one that fell on the New York Stock Exchange, where volume came to 540 million shares, compared with 566 million traded at the same point Monday.
Britain's FTSE 100 climbed 0.3 percent, Germany's DAX index rose 0.8 percent, and France's CAC-40 rose 1 percent. Japan's Nikkei stock average finished up 0.1 percent
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Oil prices above $76 as stocks, euro rise
Crude prices up with rising stocks and stronger euro; BP meetings in Washingrton this week
An unidentified oilfield employee works high on a new well Sunday, June 13, 2010, in the Sakhir, Bahrain, desert in the Persian Gulf. (AP Photo/Hasan Jamali)
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SymbolPriceChangeBP31.37+0.70
MCO20.89+0.98
Crude prices rose on Tuesday as stock markets gained ground and investors awaited word on what BP would do about future dividends and the oil spill in the Gulf of Mexico.
At the gas pump, the drop in prices over the past six weeks has slowed. Pump prices edged lower Tuesday, falling 0.2 cent to a national average of $2.696 per gallon, according to AAA, Wright Express and Oil Price Information Services. Prices have fallen 2.2 cents in the past week and 17.6 cents in the past month and are now just 2.7 cents higher than year-ago levels.
BP executives, including CEO Tony Hayward, are to meet with President Barack Obama Wednesday to talk about the Gulf spill. Hayward will testify before a congressional panel on Thursday.
The White House meeting and the hearing come as BP debates whether to suspend or cut its second-quarter dividend until it knows how much the spill will cost. The White House also is pressuring the company to establish a fund to compensate victims of the spill.
Energy prices could be affected by the outcome.
"There is a tremendous amount of headline risk," oil analyst and trader Stephen Schork said.
Benchmark crude for July delivery rose $1.16 to $76.28 a barrel on the New York Mercantile Exchange. The contract added $1.34 to settle at $75.12 on Monday.
Schork said oil continues to strongly track changes in the dollar compared with the euro. Because oil is traded in dollars, it becomes more expensive if the dollar drops in value against the euro. The euro rose in value Tuesday even though Moody's Investors Service slashed Greece's credit rating to junk status on Monday.
The European debt crisis, due in part to the problems in Greece, contributed to a sharp drop in oil prices last month.
"The negative impact of such news on the market is evidently fading," Commerzbank said in a note to investors. "On the other hand, reports of this kind are likely to prevent a further rally of oil prices."
Rising stock prices helped boost oil as well. The Dow Jones Industrial Average was up about 100 points, or 1 percent, in late-morning trading. The NASDAQ and the S&P 500 were slightly higher.
In other Nymex trading in July contracts, heating oil rose 3.02 cents to $2.0561 a gallon, and gasoline gained 2.71 cents at $2.1035 a gallon. Natural gas was up 8.1 cents at $5.087 per 1,000 cubic feet.
Brent crude rose $1 to $76.20 a barrel on the ICE futures exchange.
Associated Press writers Nataliya Vasilyeva in Moscow and Alex Kennedy in Singapore contributed to this report.
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