US STOCKS-Dow, S&P rise on commodities, banks, but tech dips

* Bernanke says U.S. should avoid double-dip recession

* Tech shares fall on broker comments, Microsoft

* Dow up 1.3 pct, S&P up 1.1 pct, Nasdaq off 0.2 pct
* For up-to-the-minute market news see [STXNEWS/US]
(Updates to close)

By Rodrigo Campos

NEW YORK, June 8 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) mostly rose in
volatile trading on Tuesday, led by materials and financial
shares, but investors shied away from big-cap technology
shares on concerns about their European exposure.

Once again, the market was treated to late-day volatility,
this time with stocks closing at or near session highs after a
wobbly session.

Overnight, Federal Reserve Chairman Ben Bernanke said the
U.S. economy seemed to have enough momentum to avoid a
“double-dip” recession, giving support to domestic-oriented
companies. For details, see [ID:nLDE65705B]

“Investors are sort of cautiously paring back their
international exposure and, even within the S&P 500, trying to
position in a domestic theme,” said Jack Ablin, chief
investment officer of Harris Private Bank in Chicago.

Banks, telecommunications services and consumer staples
shares ranked among the top performers. AT&T (T.N: ), a Dow
component, rose 2.7 percent to $24.97. Bank of America Corp
(BAC.N: ) rose 3.4 percent to $15.33 and Procter & Gamble Co
(PG.N: ) gained 2.5 percent to $62.14.

The Dow Jones industrial average (.DJI: ) gained 123.49
points, or 1.26 percent, to 9,939.98. The Standard & Poor’s
500 Index (.SPX: ) rose 11.53 points, or 1.10 percent, to
1,062.00. But the Nasdaq Composite Index (.IXIC: ) dropped 3.33
points, or 0.15 percent, to 2,170.57.

From a technical view, short-term momentum is showing
negative signals as the S&P’s 14-day moving average has traded
below the 200-day moving average for a week. At its lowest
during the session, the benchmark managed to stay above its
2010 low, with the 1,040 level seen as key support.

The economy of Brazil, Latin America’s largest and
strongly supported by basic materials, surged at its fastest
pace in at least 14 years in the first quarter, fueled by
strong investment and domestic demand, government data

An S&P materials stocks index (.GSPM: ) rose 2.5 percent and
ranked as the best-performing sector in the broad S&P 500.

Freeport-McMoRan Copper and Gold (FCX.N: ) rose 4.8 percent
to $61.48 and U.S. Steel (X.N: ) gained 2.6 percent to $41.34.

An index of New York-traded stocks of Brazilian companies
(.BKBR: ) rose 2.6 percent.

McDonald’s Corp (MCD.N: ) gained 2.5 percent to $68.41 after
the world’s biggest hamburger chain reported a
stronger-than-expected rise in global same-store sales in May.

The technology sector was hit after Bank of
America-Merrill Lynch cut price targets on several Internet
stocks, citing uncertainty over earnings due to the dollar’s
gains against the euro since April. Inc (AMZN.O: )
fell 2.6 percent to $118.84. [ID:nSGE6570FA]

Another drag on tech was Microsoft Corp (MSFT.O: ), which
lost 0.7 percent to $25.11 after the Dow component said it
planned to make a private offering of senior notes in a move
to repay short-term debt. [ID:nN08189730]

“It may be a play on U.S. versus the rest of the world,
where tech is probably the most export-oriented,” Ablin said.

As European Union finance ministers discussed how to
reduce swollen budget deficits to contain a debt crisis,
Spanish public service workers staged a one-day strike that
underlined the problems governments face in implementing
austerity measures. For details see [ID:nLDE6570P8].

“Investors don’t have the confidence that Europe will be
able to address its shortfalls, or that European growth can
recover enough to help these economies,” said Charles
Lieberman, chief investment officer of Advisors Capital
Management in Paramus, New Jersey.

About 11.1 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and Nasdaq, far
exceeding last year’s estimated daily average of 9.65

Advancing stocks outnumbered declining ones on the NYSE by
a ratio of about 3 to 2, while on the Nasdaq, about three
stocks fell for every two that rose.

Stock Market Trading

(Reporting by Rodrigo Campos; Additional reporting by Ryan
Vlastelica; Editing by Jan Paschal)

US STOCKS-Dow, S&P rise on commodities, banks, but tech dips