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Tuesday January 6, 10:30 PM
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US STOCKS-Falling oil, energy shares leave meager gains
NEW YORK (Reuters) - U.S. stocks edged higher on Tuesday as investors bet on strength in the tech sector despite data on slumping factory orders and the lowest pending home sales in at least seven years that spurred concerns about the economy.
A reverse in oil price rises also deflated much of an earlier rally, pulling energy shares lower and knocking a key support out from under the market.
The Nasdaq outperformed as shares of Apple Inc rose 2.3 percent to $96.75 after Oppenheimer & Co upgraded the stock, saying a change in company leadership was not imminent despite concerns about chief executive Steve Jobs' health.
Microsoft Corp gained 1.6 percent to $20.84 after the software maker said it sold 28 million units worldwide of its Xbox 360 video game console through the end of 2008, expanding its lead over rival Sony Corp's PlayStation 3 console.
Investors also bet technology stocks would benefit from President-elect Barack Obama's proposed economic plan that would include the largest U.S. infrastructure investment since the 1950s. Many stocks have benefited from the prospect of such huge spending.
"The prospects are slightly better for producers of computerware. Tech stocks are also receiving a boost from the Obama initiative to spend on technology infrastructure," said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in Greenwich, Conn.
The Dow Jones industrial average rose 14.82 points, or 0.17 percent, at 8,967.71 and the Standard & Poor's 500 Index gained 2.94 points, or 0.32 percent, at 930.39. The Nasdaq Composite Index added 12.90 points, or 0.79 percent, at 1,640.93.
Cisco Systems, known for its routers which direct traffic on the Internet, rose 2.9 percent while chip maker Intel Corp gained 2.2 percent.
