US STOCKS-Wall St rallies on cheaper oil, lower bond yields
NEW YORK, June 8 (Reuters) - U.S. stocks closed higher on Friday after a
three-day slide as bond yields retreated and oil prices fell, easing worries
about rising borrowing costs and inflation. A flurry of encouraging corporate
news, including a strong monthly sales report from McDonald's Corp. (MCD.N:
Quote, Profile , Research) lent support.
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National Semiconductor Corp. (NSM.N: Quote, Profile , Research) shares rose
15 percent after the analog chip maker reported higher-than-expected profit,
adding to optimism about technology spending and helping lift the Nasdaq more
than 1 percent. Even with Friday's gains, stocks finished the week with their
heaviest losses since the week ended March 2 as bond yields soared on concerns
that global growth will boost inflation. Rising yields can cut into corporate
profits and make takeovers more expensive as borrowing costs rise. Stocks
also got a lift from falling oil prices after a storm that threatened Mideast
supplies petered out. "After having been spooked by the rapidity with which
long rates were rising, the market is regaining its footing, which makes some
sense, seeing as the fundamentals haven't changed at all," said Michael Darda,
chief economist at MKM Partners LLC in Greenwich, Connecticut. Continued...
© Reuters 2007. All Rights Reserved.
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