Stocks extend two-week market rise

The Dow Jones industrial average rose 23.95, or 0.3 per cent, to close on Friday at 9,093.24

Most stocks rose again on Friday to extend a two-week jump which has added 11% to the US market's major indicators.

Disappointing results from Microsoft and Amazon.com hit technology shares, however, and dragged the Nasdaq composite index lower.

The Dow Jones industrial average rose 23.95, or 0.3%, to close on Friday at 9,093.24.

The Standard & Poor's 500 index rose 2.97, or 0.3%, to 979.26, while the Nasdaq fell 7.64, or 0.4%, to 1,965.96, breaking a 12-day winning streak.

The Microsoft and Amazon reports underscored the prevailing theme of earnings season thus far: Companies have been able to report better-than-expected earnings in large part because of aggressive cost-cutting measures, not stronger sales. Revenue at some companies is still sagging as consumers forgo spending to shore up their savings.

Still, investors have taken the improved results as confirmation that the economy is healing and that a turnaround is possible by the end of the year.

"We are of the opinion that it may not be a straight line, but things are going to continue to get better," said Keith Walter, portfolio manager at Artio Global Equity Fund.

Investors are betting on an improvement. News on Thursday that existing home sales rose in June for the third straight month helped pushed the Dow over 9,000 for the first time since January. In just nine days, the Dow and the S&P 500 index have climbed 11%, reigniting a rally that carried the market 40% higher this spring. Stocks gave up some of those gains last month as still-growing unemployment and weak consumer confidence fed doubts about the economy's recovery.

Despite the gains, analysts warn that investors still have a number of obstacles to contend with, including earnings reports from retailers that will provide more insight into the financial health of the consumer.

"It's healthy that there is fear and scepticism in the marketplace," said Jeffrey Frankel, president of Stuart Frankel & Co. "The more people are concerned and the more people are careful, the healthier the market will be. What gets us in trouble is when there is no fear."