Most U.S. Stocks Rise as Technology, Materials Shares Advance

A pedestrian walks outside EBay Inc. headquarters. Photographer: Tony Avelar/Bloomberg

Aug. 16 (Bloomberg) -- John Michaelson, co-founder of Imperium Partners Group LLC, talks about the impact of low interest rates on investments, bank lending and consumer confidence. Michaelson speaks with Betty Liu on Bloomberg Television's "In the Loop." (Source: Bloomberg)

Most U.S. stocks rose, with the Standard & Poor’s 500 Index climbing after four days of declines, with materials shares gaining as gold reached a six- week high and technology rebounding from last week’s slump.

EBay Inc. gained 2.6 percent on speculation its PayPal service will be used by Google Inc.’s smartphone. Freeport- McMoRan Copper & Gold Inc. climbed 0.8 percent as a slumping dollar boosted copper and gold and Goldman Sachs Group Inc. reiterated its “overweight” rating on commodities. Washington Post Co. and Corinthian Colleges Inc. sank at least 8.1 percent on concern they will lose access to government student loans.

About five stocks rose for every three that fell on U.S. exchanges. The S&P 500 rose less than 0.1 percent to 1,079.38 as of 4 p.m. in New York. The Dow Jones Industrial Average decreased 1.14 points, or less than 0.1 percent, to 10,302.01.

“We’re in a bridge period,” said Quincy Krosby, chief market strategist for Newark, New Jersey-based Prudential Financial Inc., which oversees $690 billion. “Buyers will be back into stocks when the economic numbers turn enough for them to say -- we’re seeing real change. Investors are searching for yield. One day bond yields will start moving higher, but that’s going to be predicated on the back of solid economic data.”

‘More Modest’

About $1.9 trillion has been wiped from the value of global equities since the Federal Reserve said Aug. 10 that the pace of economic recovery will probably be “more modest” than forecast. The 4.3 percent retreat in the S&P 500 from Aug. 9 through Aug. 13 threatened the index’s rebound from a 10-month low on July 2.

The Russell 2000 Index of small companies rose 0.9 percent, breaking a four-day losing streak. Measures of telephone, raw- material, technology, consumer and energy companies in the gauge advanced more than 1 percent. 3Par Inc. jumped 87 percent after Dell Inc., the world’s third-largest personal-computer maker, agreed to buy it to gain equipment and software to bolster its growing corporate data-center business.

The S&P 500 fell as much as 0.9 percent today after a report showed that the Federal Reserve Bank of New York’s general economic index rose to 7.1 this month from 5.1 in July. Economists forecast the measure would rise to 8, according to the median estimate in a Bloomberg News survey. Readings greater than zero signal expansion in the so-called Empire State Index that covers New York, northern New Jersey and southern Connecticut.

Home Builders

The National Association of Home Builders/Wells Fargo confidence index fell to 13 this month, the lowest level since March 2009, from 14 in July. Economists forecast a reading of 15, according to the median estimate in a Bloomberg News survey. Readings lower than 50 mean more respondents said conditions were poor.

Gross domestic product in Japan rose an annualized 0.4 percent in the second quarter, the country’s Cabinet Office said today, pushing the economy into third place behind the U.S. and China. The median estimate of 19 economists surveyed by Bloomberg News was for growth of 2.3 percent.

“Economic momentum has slowed and that’s worrisome,” said Alan Gayle, senior investment strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees $63 billion. “The numbers show a very tepid recovery in developed economies. Corporate earnings have been good, but the overall economic momentum has been disappointing. That plays into expectations for sales growth and the stock market.”