Stocks extend gains
into second session

NEW YORK » Stocks managed to extend their gains into a second session yesterday as a bright outlook from Oracle and better-than-expected results from chipmaker Texas Instruments lifted the technology sector.

Despite the day's strong trading, some analysts were skeptical about whether the gains would hold, particularly after three weeks of persistent declines. Stocks have not enjoyed three straight days of gains since the year began; they've also tended to lose momentum after robust starts, even in the face of good earnings and positive economic data -- a pattern that has made investors extremely cautious.

The Dow Jones industrial average rose 37.03, or 0.35 percent, to 10,498.59.

The broader gauges also closed higher. The Standard & Poor's 500 index was up 5.66, or 0.48 percent, at 1,174.07. The Nasdaq composite index rose 26.14, or 1.29 percent, to 2,046.09, its best one-day point gain since Dec. 7. The tech-focused index had dropped nearly 6 percent over the last three weeks.

Oil prices were volatile after the U.S. government and an industry group issued mixed reports on fuel inventories. The government's weekly report, which is most closely watched, showed a jump in crude stores, a sharp drop in gasoline supplies and an expected draw in distillates, which include heating oil. However, the American Petroleum Institute reported steep declines in all three categories.

The government's report of a build in crude alleviated pricing pressure, and crude futures declined 86 cents to settle at $48.78 per barrel on the New York Mercantile Exchange. Oil prices were still uncomfortably close to the $50 mark, however, amid growing anxiety about trouble in the Mideast ahead of the upcoming elections in Iraq.

Investors were also focused on earnings and forecasts during a week when hundreds of companies were releasing results. The spate of good news and momentum from the previous session raised some hope that investors would return to the market in greater numbers.

Texas Instruments Inc. surged 7.3 percent, or $1.54, to $22.66, as the maker of chips for cell phones beat Wall Street's expectations despite a dip in fourth-quarter profits compared to a year ago. The company warned that first-quarter revenue would be lower due to seasonal slowness and a buildup of inventory. Merrill Lynch upgraded the stock to "neutral" from "underperform," citing a belief that the company was more likely to meet estimates in 2005.