Tech stocks pull market out of 3-day slide

NEW YORK — The stock market broke a three-day slide as two big technology companies signaled that business was improving, raising hopes about business spending.

Tech stocks led the market higher in choppy trading Friday. Software company Oracle Corp. and BlackBerry maker Research In Motion Ltd. each posted earnings that topped expectations.

The better results at Oracle, which makes software for large businesses, suggested that companies are becoming more willing to spend on technology projects. Research In Motion increased profits as it added subscribers and record sales of its smartphones. Palm Inc., however, reported a wider second-quarter loss than analysts predicted as sales fell.

Burt White, chief investment officer at LPL Financial in Boston, said the reports lifted technology shares because investors saw it as a sign that profits could grow and help other parts of the economy that are struggling.

"What is going to drive this recovery is an improvement in business spending, not consumer spending," he said.

After a volatile morning, the market settled out in the afternoon trading as more investors looked to close their books for the year. Trading will be shortened next week because of the Christmas holiday on Friday.

The day began with a frenzy of buying and selling as several types of options contracts expired. Volatility was also high as several stocks were added to and dropped from the Standard & Poor's 500 index, a widely used benchmark and the basis for many indexed mutual funds.

According to preliminary calculations, the Dow Jones industrial average rose 20.63, or 0.2 percent, to 10,328.89, after dropping 133 points Thursday.

The broader S&P 500 index rose 6.39, or 0.6 percent, to 1,102.47, and the technology-heavy Nasdaq composite index rose 31.64, or 1.5 percent, to 2,211.69.

For the week, the Dow fell 1.4 percent, the S&P 500 index fell 0.4 percent and the Nasdaq rose 1 percent.

Stocks had tumbled on Thursday as the dollar spiked on worries about debt problems in Europe. A higher dollar can cut into profits of U.S. companies that do business overseas.

The market lost ground earlier in the week after a jump in inflation raised concerns that the Federal Reserve would be forced to raise interest rates. The Fed said Wednesday that it expected to leave interest rates low to help boost the economy.