US stocks rose as unexpectedly strong retail sales suggested consumer spending was holding up, while a surprise takeover proposal in the software industry lifted technology shares.
Apple, BEA among biggest gainers
NEW YORK: US stocks rose on Friday as unexpectedly strong retail sales suggested consumer spending was holding up, while a surprise takeover proposal in the software industry lifted technology shares.
A brighter outlook from McDonald’s Corp also lent support.
Biggest advancers on the technology front included Apple Inc after the Ipod maker’s price target was raised at Morgan Stanley.
Shares of business software maker BEA Systems Inc gave the second biggest lift to the Nasdaq 100 index after Oracle Corp proposed a $6.66 billion takeover of the company. Shares of consumer-oriented issues, including soft-drinks maker Coca-Cola Co, also showed strength. UBS raised its price targets on several consumer products companies
“The retail numbers really surprised everybody that they were as good as they came in, so there’s still a focus on that,” said Angel Mata, managing director of listed equity trading, Stifel Nicolaus Capital Markets in Baltimore.
The Dow Jones industrial average was up 35.77 points, or 0.26%, at 14,050.89. The Standard & Poor’s 500 Index was up 4.65 points, or 0.30%, at 1,559.06. The Nasdaq Composite Index was up 24.19 points, or 0.87%, at 2,796.39.
According to government reports, retail sales rose more than expected last month despite worries the housing slump would cause consumers to keep a tight grip on their wallets.
In addition, data showed price rises last month were under control.
Apple shares jumped 2.4% to $166.10 on the Nasdaq after theflyonthewall.com reported that Morgan Stanley had raised the stock’s price target to $180 from $150 and kept an “overweight” rating.
BEA shares rose more than 33% to $18.14 - above Oracle’s $17 per share offer price.
A Reuters-University of Michigan survey showing a drop in consumer sentiment briefly caused major indexes to retreat, but they soon recovered to edge higher.
On the downside, shares of diversified manufacturer General Electric Co dropped 2.1% to $40.73 after the company posted quarterly results in line with expectations.
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