New York Report: Stocks rose Tuesday, lead by gains in the technology sector, as investors snapped up shares of JDS Uniphase on news of a big investment in fiber optics by SBC Communications.
Positive earnings from Goldman Sachs Group and PalmOne also helped underpin the market.
Wal-Mart Stores, however, dragged on the blue-chip Dow following news that a federal judge certified a class-action suit charging that the world's biggest retailer discriminated against female workers.
Nagging worries about the handover of power in Iraq and a US interest-rate hike also helped keep gains in check.
The Dow Jones industrial average rose 23.60 points, or 0.23 percent, to 10,395.07. The broader Standard & Poor's 500 index gained 4.11 points, or 0.36 percent, to 1,134.41. The technology-laced Nasdaq Composite index climbed 19.77 points, or 1 percent, to 1,994.15.
Volume was moderate with 1.4 billion shares traded on the New York Stock Exchange and 1.6 billion shares traded on Nasdaq.
Wal-Mart's stock fell 1.6 percent, or 87 cents, to $54.06, and was among the Dow's biggest percentage losers.
Shares of JDS Uniphase, which supplies parts to boost the speed and capacity of fiber optic networks, surged 12 percent, or 38 cents, to $3.58. Avanex, which provides systems for fiber optic communications networks, jumped 15 percent, or 40 cents, to $3.
PalmOne ranked among the Nasdaq's biggest percentage gainers, a day after the hand-held computer maker reported earnings that surpassed estimates. On the Nasdaq, PalmOne shares soared 37 percent, or $7.90, to $29.36.
Semiconductor shares like Intel also supported the market. Intel rose 1.89 percent to $28.04, Broadcom rose 5 percent to $44.85, and Texas Instruments rose 4 percent to $23.85.
On the NYSE, Morgan Stanley shares rose 1.8 percent to $52.15 after the investment bank said its quarterly earnings more than doubled. Rival investment bank Goldman Sachs Group's shares rose, after it reported higher quarterly earnings.
Goldman shares climbed 2 percent to $90.60.
Still, many investors are wary of making big bets in the market ahead of a number of key dates, traders and analysts said.
Worries have been mounting before a meeting next week of the Federal Reserve's policy-setting arm, which is widely expected to raise interest rates by one-quarter of a percentage point at the end of its meeting next Wednesday. - (Reuters)