Stocks rose Friday after an optimistic profit projection by Ford Motor.
Ford's outlook was somewhat of a surprise since the automaker announced cutbacks in production earlier this month. A number of large companies, especially in the technology and industrial sectors, have downgraded their earnings guidance for the third quarter because of soft demand, renewing worries on Wall Street that the summer's economic slowdown would continue.
The markets gained despite oil prices rising back above $45 per barrel, driven by lost capacity from the Gulf of Mexico after Hurricane Ivan. A barrel of light crude settled at $45.59, up $1.71, on the New York Mercantile Exchange.
The Dow Jones industrial average rose 39.97, or 0.4 percent, to 10,284.46.
Broader stock indicators were modestly higher. The Standard & Poor's 500-stock index was up 5.05, or 0.4 percent, at 1128.55, and the Nasdaq composite index gained 6.01, or 0.3 percent, to 1910.09.
For the week, the Dow fell 0.3 percent after five weeks of gains. The S&P 500 was up 0.4 percent and the Nasdaq rose 0.8 percent.
Blue chips were hit hard earlier in the week by a disappointing profit outlook from Dow component Coca-Cola, while rising oil prices and muddled economic data kept the other indicators' gains to a minimum.
In addition, some investors likely kept to the sidelines in advance of Tuesday's Federal Reserve meeting.
Also Friday, cell-phone component maker Qualcomm slid $1.57, to $38.83, even as the company raised its fourth-quarter and full-year earnings estimates. Qualcomm said it would have to adjust the way it accounts for royalties, which could result in lower revenue figures going forward.
Texas Instruments rose 49 cents, to $22.08, after the semiconductor and electronics manufacturer authorized a $1 billion stock repurchase plan. The company also increased its quarterly dividend to 2.5 cents from 2.125 cents.
Knight Ridder slipped 9 cents, to $63.50, after the media company said its third-quarter earnings would exceed Wall Street forecasts because of a one-time tax-related gain but would have otherwise fallen to a loss due to hurricane damage to the company's Florida properties.
* The New York Stock Exchange composite index rose 29.39, to 6604.00; the American Stock Exchange index rose 1.87, to 1247.78; and the Russell 2000 index of smaller-company stocks fell 1.37, to 573.17.
* Advancing issues outnumbered declining ones by 9 to 8 on the NYSE, where trading volume rose to 1.43 billion shares, from 1.11 billion on Thursday. On the Nasdaq Stock Market, advancers narrowly outnumbered decliners and volume totaled 1.58 billion, up from 1.31 billion.
* The price of the Treasury's 10-year note fell $4.38 per $1,000 invested, and its yield rose to 4.11 percent, from 4.07 percent on Thursday.
* The dollar rose against the Japanese yen and the euro. In late New York trading, a dollar bought 109.91 yen, up from 109.63 late Thursday, and a euro bought $1.2178, down from $1.2188.
* Gold for current delivery rose to $405.80 a troy ounce, from $404.70 on Thursday, on the New York Mercantile Exchange's Commodity Exchange.