Makers of semiconductors and other components for communications networks had some of the week's biggest gains.
Applied Micro Circuits Corp rose 25 percent, PMC Sierra Inc climbed 19 percent and Vitesse Semiconductor Corp jumped 16 percent. All three make chips used in communications equipment, and they helped the Philadelphia Semiconductor Index to a 4.6 percent advance this week. The index has gained 49 percent from its post-attack low.
Corning Inc, the biggest maker of fiber-optic cable, jumped 33 percent this week, while JDS Uniphase Corp, which makes components for fiber-optic networks, rose 27 percent.
Some money managers have outperformed the market this year by betting on drug and consumer-products makers or other stocks considered "defensive" because their profits hold up better in a slowdown, said Cripps. Managers are now trying to get back into technology stocks to keep their lead over the S&P 500.
"The people who are most uncomfortable with this rally are the people who realize that they are more defensive than the market," Cripps said. "They want to make their portfolios look more like the S&P 500," which is more than 24 percent technology and telecommunications companies.
Oil producers plummet
Oil producers and drillers fell as the price of crude oil plummeted to a two-year low mid-week. OPEC declined to cut its output quotas without help from non-member countries such as Russia and Norway.
Exxon Mobil Corp, the largest oil company, fell 6.7 percent and was the biggest drag on the S&P 500. Anadarko Petroleum Corp, an independent oil producer, declined 13 percent.
Among drillers, Nabors Industries Inc fell 19 percent, Noble Drilling Corp lost 14 percent, Baker Hughes Inc declined 16 percent, and Rowan Cos slipped 15 percent. Seven of the 10 biggest percentage declines in the S&P 500 were energy companies.
The collapse of crude-oil prices helped some companies, such as airlines, which will benefit from lower fuel costs. US Airways Group Inc rose 51 percent for the biggest gain in the S&P 500, though it is still down 40 percent since the terrorist attacks.
The Amex Airline Index climbed 17 percent, led by UAL Corp, which rose 30 percent, and Northwest Airlines Corp, up 16 percent, in addition to US Airways. AMR Corp, parent of American Airlines, gained 11 percent on the week, after falling as much as 17 percent early last Monday on news of the plane crash.
The University of Michigan will release its latest poll of consumer sentiment about the economy on Wednesday, and the government will report data on new home construction today. Home sales and consumer spending have been among the strongest areas in the economy, even as businesses investment has slowed, so investors will be watching these reports to see whether the trend persists.
The US stock market will be closed on Thursday for the Thanks-giving holiday and will close at 1pm New York time on Friday.
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