Wall St buoyed by signs of business investment

US stocks rose on Wednesday as a report pointing to stronger business spending boosted shares of blue-chip computer firms and heavy equipment makers, overshadowing the latest signs of turmoil in the financial sector.

Shares of technology companies such as IBM and Hewlett-Packard Co rose after a government report on orders for durable goods - long-lasting manufactured items - showed a surprising jump in business investment last month.

The data also boosted shares of companies that make expensive machinery such as Caterpillar and Deere & Co .

Fears of more loan losses crept back into the market and limited gains overall after KeyCorp, a big Midwestern bank, said its write-offs for the year may be twice as much as it had previously forecast.

Shares of American International Group dropped nearly 5 per cent after Citigroup said the insurer may need even more capital after raising US$20 billion just last week.

‘You’ve got the financials lower, (but) there’s general strength in technology after durable goods,’ said Tim Smalls, head of US stock trading at brokerage firm Execution LLC in Greenwich, Connecticut. ‘Durable goods also helps stocks in the Dow like Caterpillar, Alcoa.’

The Dow Jones industrial average was up 45.68 points, or 0.36 per cent, at 12,594.03. The Standard & Poor’s 500 Index was up 5.49 points, or 0.40 per cent, at 1,390.84. The Nasdaq Composite Index was up 5.46 points, or 0.22 per cent, at 2,486.70.

Trading was extremely light on the New York Stock Exchange, with about 1.19 billion shares changing hands, well below last year’s estimated daily average of roughly 1.9 billion, while on Nasdaq, about 1.82 billion shares traded, short of last year’s daily average of 2.17 billion.

Advancing stocks outnumbered declining issues by a ratio of about 4 to 3 on the NYSE. Advancers and decliners were nearly even on the Nasdaq.

Hope springs eternal… heh heh

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