Semiconductor profit
gives markets boost

NEW YORK » Stocks rebounded from early losses yesterday, closing higher as National Semiconductor Corp.'s better-than-expected earnings soothed investors' concerns over higher unemployment and rising oil prices.

National Semiconductor's 22 percent rise in quarterly profits also offset poor sales figures from two other semiconductor makers and helped tech shares post small gains. The markets were headed substantially lower in early trading, due to the troubling economic data, before the chip maker released its earnings report.

"You saw the markets just turn right around after National Semi released their figures," said Keith Keenan, vice president of institutional trading at Wall Street Access. "That helped restore a little optimism in the market, but there's still a lot to be worried about. This could be pretty short-lived."

The Dow Jones industrial average rose 58.59, or 0.56 percent, to 10,552.82. The Dow had been down more than 75 points earlier in the session.

Broader stock indicators were modestly higher. The Standard & Poor's 500 index was up 6.43, or 0.54 percent, at 1,189.24, while the Nasdaq composite index gained 2.90, or 0.14 percent, to 2,129.01.

The surprise climb in unemployment claims -- which rose by 8,000 to 357,000 last week -- added to lingering concerns about the job market from today's disappointing job creation report. Wall Street had expected the Labor Department to report just 335,000 new claims.

Investors remained cautious as crude oil futures rose for the second straight day, pushing past the $42-per-barrel mark. The market fretted about whether a small build in U.S. heating oil stocks was enough to last the winter, and pondered word from Kuwait's oil minister Sheik Ahmad Fahad Al-Ahmad Al Sabah that OPEC may cut production early next year.

A barrel of light crude for January delivery settled at $42.53, up 59 cents, on the New York Mercantile Exchange.

National Semiconductor's earnings failed to revive the rest of the chip sector. Intel Corp. lost 25 cents to $22.76 and rival Advanced Micro Devices Inc. was down 80 cents at $22.10.

Telecommunications equipment maker Ciena Corp. increased its sales forecast for the current quarter by 20 percent, and posted a lower-than-expected loss for the past quarter. Ciena climbed 54 cents, or 23.08 percent, to $2.88.

Luxury home builder Toll Brothers Inc. surged $6.88 to $60.99 after profits soared 93 percent in the quarter and the company surpassed earnings forecasts by 25 cents per share.