Wall Street higher on falling oil, gas

Wall Street advanced solidly Friday to finish the week higher as oil prices cooled and investors embraced signs that the economy could move forward despite Hurricane Katrina’s devastation of the Gulf Coast. The major indexes gained for the week.

Falling energy prices lent to a brighter economic picture in Katrina’s wake, with crude oil sliding despite worries about record-high energy costs this winter and continued refinery shutdowns and gasoline futures slipping below $2 a gallon. Investors also anticipated a burst of activity once reconstruction begins in the Gulf region.

“The market seems to be concentrating on the future rebuilding of the devastated area, and I think that’s what’s keeping the market from declining,” said Peter Cardillo, chief strategist at S.W. Bach & Co.

Revised forecasts from chipmakers Texas Instruments Inc. and Intel Corp. late Thursday bolstered the market with indications that consumer spending remains healthy. Texas Instruments raised its quarterly estimates — fueling hopes for greater electronics demand and calming fears of a spending slowdown — while rival Intel Corp. refined its previous view.

The Dow Jones industrial average climbed 82.63, or 0.78 percent, to 10,678.56.

Broader stock indicators also gained ground. The Standard & Poor’s 500 index rose 9.81, or 0.8 percent, to 1,241.48, and the Nasdaq composite index advanced 9.48, or 0.44 percent, to 2,175.51.

Bonds ended higher, with the yield on the 10-year Treasury note sliding to 4.12 percent from 4.14 percent on Thursday. The dollar was mixed against most major currencies, while gold prices inched up.

Light trading volume — typical of a late-summer session — persisted on Wall Street, as investors awaited more information about the rising damage toll left by Katrina and searched for any signals that the economic retreat will be less than feared. Nonetheless, falling oil prices led to a strong week for Wall Street. The Dow gained 2.21 percent, the S&P climbed 1.93 percent and the Nasdaq rose 1.61 percent for the week.

Stocks also were helped this week by the growing belief among investors that the Federal Reserve will halt its yearlong string of interest-rate hikes when it meets later this month, in part to contain lending costs for Gulf Coast reconstruction. But one analyst expressed confidence that the Fed will lift the nation’s benchmark rate by another quarter point despite concerns about inflation and fallout from the storm.

“Right now, I believe they will raise the rate by 25 basis points. They have been very clear telegraphing what they plan to do,” said Paul Cherney of Cherney Market Analysis. “They’re going to have to address (Katrina’s impact) in some fashion, but they’ll probably use plain vanilla, uninspiring wording.”

Advancing issues outpaced decliners by more than 11 to 5 on the New York Stock Exchange, where preliminary consolidated volume of 1.98 billion shares topped the 1.95 billion shares traded on Thursday.

The Russell 2000 index of smaller companies rose 4.58, or 0.68 percent, to 678.05.

Overseas, Japan’s Nikkei stock average rose 1.26 percent. Britain’s FTSE 100 climbed 0.35 percent, Germany’s DAX index was up 0.26, and France’s CAC-40 was higher by 0.58 percent.