By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — U.S. stocks rose Monday after four weeks of declines, with investors considering whether Wall Street’s extended slide might be overblown.
“Investors this week will try to assess whether the outlook for the economy is quite as dire as the markets seem to suggest,” said David Kelly, chief market strategist at J.P. Morgan Funds.
“Today we see a very oversold stock market ripe for a modest relief rally,” noted Fred Dickson, chief investment strategist at Davidson Cos.
The Dow Jones Industrial Average DJIA +0.43% rose 67.92 points, or 0.6%, to 10,885.57, with Hewlett-Packard Co. HPQ +4.26% leading gains that included all but four of the index’s 30 components.
The blue chips lost 451.37 points, or 4%, last week, its fourth straight weekly decline.
After sliding 4.7% last week, the Standard & Poor’s 500 Index SPX +0.08% on Monday gained 4.39 points, or 0.4%, to 1,127.92, with telecommunications and technology faring the best among its 10 industry groups and financials and energy the laggards.
The Nasdaq Composite Index COMP +0.01% rose 9.12 points, or 0.4%, to 2,350.96.
For every share that fell more than one gained on the New York Stock Exchange, where 334 million shares had traded by 11:30 a.m. Eastern.
“The chorus of economists and strategists predicting recession has grown louder in recent days and the withering impact of these pronouncements on confidence is sadly boosting the chances that they could be right. However, so far neither comprehensive data for July nor the more spotty data for August confirm this,” said Kelly at J.P. Morgan Funds.
Federal Reserve Chairman Ben Bernanke is scheduled to speak at a central bank meeting on Friday in Jackson Hole, Wyo. Read preview for Bernanke’s speech.
Crude-oil futures for September delivery CL1U +0.91% , slated for expiration later Monday, rose 58 cents to $82.84 a barrel on the New York Mercantile Exchange, while October futures CL1V +0.81% , the most actively traded contract, added 58 cents to $82.99 a barrel.
