US stocks rose for the first day in four after Qualcomm Inc said it will sell more mobile-telephone chips this quarter than earlier predicted.
Benchmark indexes recorded a fourth-straight losing week.
"After a straight line down, you're entitled to bounces," said Donna Van Vlack, head trader at Brandywine Asset Management, which oversees $8 billion in Wilmington, Delaware.
The Standard & Poor's 500 Index gained 2.07, or 0.3 percent, to 845.39, with Qualcomm contributing about 10 percent of the advance. The Dow Jones Industrial Average added 43.63, or 0.6 percent, to 7,986.02. The NASDAQ Composite Index climbed 4.64, or 0.4 percent, to 1,221.09.
Stocks fell for the week after companies such as McDonald's Corp, JP Morgan Chase & Co and Electronic Data Systems Corp said earnings will lag forecasts. Utility owner Duke Energy Corp joined them on Friday.
For the week, the S&P 500 lost 5 percent and the Dow 3.9 percent. For both, it was the biggest weekly decline since July 19. The NASDAQ's 5.4 percent slide this week was its largest since April 26.
"The environment is very negative," Tom Arrington, who helps oversee US$260 billion at Banc of America Investment Management, said on Bloomberg Television. "We're at the very beginning of corporate warnings season and the news has been bad, the economy has been slow. We have a lot of fear in the market."
Some 1.77 billion shares traded on the New York Stock Exchange, according to preliminary statistics, the most since July 31. Trading picked up as some investors made new bets on the market during the quarterly "triple witching," which marked the expiration of stock and index options and stock-index futures.
Rising and falling shares were about even on the Big Board and the NASDAQ Stock Market.
Qualcomm rose US$2.36 to US$28.08. The third-largest US supplier of chips that run mobile phones said it will ship about 20 million phone chips in the fourth quarter ending Sept. 29, more than previously forecast.
RF Micro Devices Inc, which also makes mobile-phone chips, jumped US$0.37 to US$5.87. Motorola Inc, the world's second-largest maker of mobile phones, gained US$0.36 to US$10.48.
Consumer stocks contributed more than half of the S&P 500's advance. Costco Wholesale Corp rose US$1.09 to US$34.24 after Merrill Lynch & Co analyst Daniel Barry raised the stock to "buy" from "neutral." The largest US chain of warehouse clubs this month said same-store sales rose 6 percent in August.
Carnival Corp gained US$1.88 to US$25.18. The largest cruise-line operator said third-quarter profit rose 1.2 percent, beating estimates, as it cut costs and benefited from a US$34 million tax credit.
Tribune Co rallied US$2.39 to US$42.34. Merrill Lynch & Co analyst Lauren Rich Fine boosted the Chicago Tribune publisher's third-quarter earnings estimate to US$0.38 from US$0.36, citing August revenue increases. Morgan Stanley analyst Douglas Arthur raised the stock to "overweight" from "equal-weight."
Amylin Pharmaceuticals Inc gained US$1.50 to US$13.90. The pharmaceutical company said Eli Lilly & Co. will help it develop an experimental compound to treat diabetes. Lilly will make initial payments to Amylin of US$80 million and buy US$30 million of Amylin common stock at US$18.69 a share. Lilly climbed US$1.01 to US$56.33.
Duke Energy shed US$1.02 to US$20.40. The second-largest US utility owner said 2002 and 2003 profit will be below forecasts because of declining energy prices. The company will take a charge of as much as 23 cents a share this quarter after halting work on three western power plants.
Among other energy shares, Mirant Corp lost US$0.19 to US$2.32, while Calpine Corp declined 3 cents to US$3.44. Dominion Resources Inc., another utility which this week said 2003 profit will fall short of forecasts, lost US$0.50 to US$50.
Eastman Kodak Co, the largest photography company, fell US$1.29 to US$26.63. Bear Stearns Cos analyst Gary Schneider said management's comments during a meeting with investors suggested the company's third-quarter revenue growth will come from currency translations rather than rising sales. He cut the stock to "underperform" from "peer perform."
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