Strong reports lift stocks

NEW YORK — Wall Street barreled higher Friday as surprisingly strong reports on home sales and durable-goods orders bolstered investor hopes for a sustainable economic recovery. The Dow Jones industrials climbed 172 points to post their fourth straight winning week.

Analysts said news that U.S. troops had captured some of Saddam Hussein's bodyguards in a raid in Iraq helped power the market advance. Volume also was somewhat light, creating sharper price swings.

"A lot of investors were worried about whether the economy is picking up. But the (reports) were pretty good, so that gives investors a little confidence to get back into the market," said Brian Williamson, an equity trader at The Boston Company Asset Management.

The Dow closed up 172.06, or 1.9 percent, at 9,284.57, following a loss of 82 points in the previous session. It was the Dow's biggest one-day point advance since June 16, when the blue chips closed 201.84 points higher.

Broader stock indicators also finished higher. The Standard & Poor's 500 index rose 17.08, or 1.7 percent, to 998.68, and the Nasdaq composite index gained 29.28, or 1.7 percent, to 1,730.70.

For the week, all three main gauges finished higher, with the Dow up 1.1 percent, the Nasdaq up 1.3 percent, and the S&P up 0.5 percent. The Nasdaq and S&P posted their third winning week out of the last four.

The Commerce Department reported that new orders for durable goods increased 2.1 percent in June from May.

In a separate report, the department said sales of new, single-family homes rose at a seasonally adjusted annual rate of 1.16 million units in June, a 4.7 percent increase over May's level.

Meanwhile, a senior U.S. Army officer said at least five of the 13 people captured in a raid in Iraq are believed to be members of Saddam's personal security detail. Maj. Gen. Ray Odierno said it was too early to tell if the guards could help lead Americans to Saddam.

Trading has been choppy in recent days as investors sift through the second-quarter earnings season. Analysts say investors are hoping to find strong evidence that the economy is firmly back on track.

"The economic data overall has been pretty good. But there's a lot of good and bad earnings reports leading to day-to-day volatility," said Barry Berman, head trader for Robert W. Baird & Co.

All 30 Dow components posted gains. They included Alcoa, which increased 87 cents to $26.71 despite Thursday's disclosure by the aluminum maker that interruptions at two of its plants would reduce earnings in the second half of the year by $15 million to $25 million.