Stocks rise as technology earnings boost hopes that companies will post revenue gains

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Stocks rebound on technology earnings

NEW YORK — Stocks rose early Friday as better-than-expected earnings reports from technology companies raised hopes that companies could begin boosting revenue.

Software company Oracle Corp. and BlackBerry maker Research In Motion Ltd. each reported strong earnings that beat analysts’ expectations after the markets closed Thursday.

Oracle’s results suggested companies are becoming more willing to spend on technology projects.

Palm Inc., however, reported a wider second-quarter loss than analysts predicted as sales of its smart phones declined.

The tech reports come as investors look for signs that a nine-month advance in the stock market is justified by improvements in the economy. At the same time, as year-end approaches many investors are also eager to secure gains for 2009.

In midmorning trading, the Dow Jones industrial average rose 36.43, or 0.4 percent, to 10,344.69.

The broader Standard & Poor’s 500 index rose 5.71, or 0.5 percent, to 1,101.79, and the Nasdaq composite index rose 23.27, or 1.1 percent, to 2,203.32.

Stocks tumbled on Thursday as the dollar spiked on worries about debt problems in Europe. A higher dollar can cut into profits of U.S. companies that do business overseas.

Bond prices mostly fell, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.51 percent from 3.48 percent late Thursday.

The dollar mostly rose against other major currencies, while gold prices fell.

Crude oil rose $1.58 to $74.23 per barrel on the New York Mercantile Exchange.

Two stocks rose for every one that fell at the New York Stock Exchange, where volume came to 693 million shares.

The Russell 2000 index of smaller companies rose 3.28, or 0.5 percent, to 607.53.

In afternoon trading, Britain’s FTSE 100 was up 0.4 percent, Germany’s DAX index rose 0.7 percent, and France’s CAC-40 fell 0.1 percent. Japan’s Nikkei stock average fell 0.2 percent.