Stocks Improve With Economic Outlook
Wall Street advanced solidly Friday to finish the week higher as oil prices cooled and investors embraced signs that the economy could move forward despite Hurricane Katrina's devastation of the Gulf Coast. The major indexes gained for the week.</br></br>Falling energy prices lent to a brighter economic picture in Katrina's wake, with crude oil sliding despite worries about record- high energy costs this winter and continued refinery shutdowns and gasoline futures slipping below $2 a gallon. Investors also anticipated a burst of activity once reconstruction begins in the Gulf region.</br></br>"The market seems to be concentrating on the future rebuilding of the devastated area, and I think that's what's keeping the market from declining," said Peter Cardillo, chief strategist at S.W. Bach & Co.</br></br>Revised forecasts from chipmakers Texas Instruments and Intel late Thursday bolstered the market with indications that consumer spending remains healthy. Texas Instruments raised its quarterly estimates -- fueling hopes for greater electronics demand and calming fears of a spending slowdown -- while rival Intel refined its previous view.</br></br>Broader stock indicators also gained ground. The Standard & Poor's 500-stock index rose 9.81, or 0.8 percent, to 1241.48, and the Nasdaq composite index advanced 9.48, or 0.44 percent, to 2175.51.