Stocks rise as technology shares gain

STEVE ROTHWELL AP Markets Writer Published:

NEW YORK (AP) -- The stock market rose Friday morning, clawing back from three days of declines, as shares of technology companies got a lift from healthier demand for business PCs.

KEEPING SCORE: The Standard & Poor's 500 index climbed five points, or 0.3 percent, to 1,935 as of 11:33 a.m. Eastern time. The Dow Jones industrial average rose 30 points, or 0.2 percent, to 16,765. The Nasdaq composite gained 10 points, or 0.2 percent, to 4,307.

THE CHIPS ARE UP: Intel jumped $2, or 7 percent, to $29.94 after the company said late Thursday that sales of business computers have been stronger than expected, and raised its revenue forecast. Intel rose the most of any stock in the S&P 500 index late Friday morning.

TECH LEADS: Helped by Intel, shares of technology companies saw the highest gains among the 10 industry groups in the S&P 500. The sector rose 0.6 percent, compared with a 0.2 gain for the overall index.

DINNER FOR TWO: OpenTable jumped $33.12, or 47 percent, to $103.55 after Priceline agreed to buy the online restaurant reservation company for $2.6 billion. Priceline fell $24.58, or 2 percent, to $1,201.42.

OIL: The price of crude added modestly to gains from earlier in the week. Crude is rising because Iraq's insurgency threatens to disrupt exports from OPEC's No. 2 oil producer. On Friday, oil nudged up 10 cents, or 0.1 percent, to $106.64 a barrel after a jump of more than $2 the day before. For the week, oil has risen 4 percent

ENERGY IMPACT: If the turmoil in Iraq continues and the price of oil keeps rising, U.S. growth in the second half of the year may fall short of current estimates, said David Lafferty, the chief market strategist for Natixis Global Asset Management.

10-YEAR: In U.S. government bond trading, the yield on the 10-year note rose to 2.61 percent early Friday from 2.60 on Thursday. The yield on a bond rises when its price falls.

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