(Updates to close)
* Tech advances after upbeat Dell, Marvell earnings
* Nasdaq ends month of May up 4.6 percent
* Oil price sparks caution, and Dow closes slightly lower
By Ellis Mnyandu
NEW YORK, May 30 (Reuters) - U.S. technology shares rose on
Friday as strong results from computer maker Dell Inc <DELL.O>
signaled that business and consumer spending was holding up,
driving the Nasdaq to end the month up 4.6 percent.
Rising oil prices, however, spurred uneasiness, limiting
Wall Street's gains, with the S&P 500 <.SPX> rising only
slightly and the Dow Jones industrial average <> falling
slightly.
Since oil prices hit a record above $135 barrel last week,
investors remain concerned about the effect of soaring fuel
costs on inflation and on consumer spending, a key driver of
economic growth.
In addition, data on Friday showed that consumer confidence
fell to a 28-year low in May.
Still, Dell shares jumped more than 5 percent, putting the
stock among the Nasdaq composite index's top boosters, along
with chip designer Marvell Technology Group Ltd <MRVL.O>, up
more than 23 percent, thanks to stronger-than-expected
earnings.
The semiconductor index <.SOXX>, up 2.1 percent, notched
its second straight monthly advance, capping its longest
monthly winning streak since October 2006.
"The strength of Dell's numbers was a pleasant surprise,"
said Georges Yared, founder and chief investment officer at
Yared Investment Research in Wayzata, Minnesota.
"What this demonstrates is that technology spending is very
strong globally. It may not be as strong domestically, but U.S.
weakness is being offset by global demand. So tech is probably
positioned now for a very good second quarter."
The Dow Jones industrial average <> ended down 7.90
points, or 0.06 percent, at 12,638.32. The Standard & Poor's
500 Index <.SPX> finished up 2.12 points, or 0.15 percent, at
1,400.38. The Nasdaq Composite Index <> closed up 14.34
points, or 0.57 percent, at 2,522.66.
For the week, the Dow ended up 1.3 percent, while the
Nasdaq climbed 3.2 percent and the S&P 500 gained 1.8 percent.
The Nasdaq's 4.6 percent rise for the month of May marked
its third straight monthly advance and was its second-strongest
month this year. The Dow ended the month down 1.4 percent,
while the S&P 500 rose 1.1 percent, registering its second
straight monthly climb.
The strength in technology came a week after the tech
sector overtook financials as a leading constituent of the S&P
500.
Dell shares finished at $23.06 on Nasdaq, while Marvell
shares rose to $17.36. Contributing most to the Nasdaq's rise
were shares of iPod and iPhone maker Apple Inc <AAPL.O>, which
closed up 1.1 percent at $188.75.
Shares of Cisco Systems Inc <CSCO.O>, whose routers and
other networking gear form a backbone of corporate networks,
were the top tech contributor to the S&P 500's rise, up 2
percent at $26.72 on Nasdaq.
Computer maker Hewlett-Packard Co <HPQ.N> led the Dow's
tech components with a gain of 0.3 percent to $47.06 on the New
York Stock Exchange.
Shares of American International Group Inc <AIG.N> , the
world's largest insurer, were another Dow standout, finishing
up 1.9 percent at $36.00 on the NYSE after Morgan Stanley said
the recent decline in its stock was overdone and raised its
rating. For details, see []
AIG's gain bucked a downward trend across the financial
sector as investors locked in profits after Thursday's strong
advance.
Shares of Bank of America Corp <BAC.N>, the No. 2 U.S.
bank, ended down 1.7 percent at $34.01 on the NYSE. Shares of
JPMorgan Chase & Co <JPM.N>, the No. 3 U.S. bank, declined 1.3
percent to $43.00, also on the NYSE.
Energy shares also fell on profit taking, with Exxon Mobil
Corp <XOM.N> ending down 0.7 percent at $88.76 on the NYSE.
Shares of consumer-oriented companies like retailers also
featured among the day's top drags, with shares of Costco
Wholesale Corp <COST.O>, the leading U.S. warehouse club
operator, down more than 2 percent at $71.32 after Piper
Jaffray cut its rating on the stock.
Shares of Coca-Cola Co <KO.N>, the world's largest
soft-drink company, declined 1.1 percent to $57.26 on the NYSE,
making the stock the Dow's biggest weight, while rival PepsiCo
Inc <PEP.N> slipped 0.8 percent to $68.30.
U.S. crude <CLc1> gained 73 cents, or 0.6 percent, to
settle at $127.35 a barrel on the New York Mercantile
Exchange.
Friday's volume was tepid, as it has been throughout the
week.
"The whole week really hasn't been a great volume week.
It's almost like a lot of people made this past Memorial Day a
five-day holiday instead of one day," said Victor Pugliese,
director of listed equity trading at Broadpoint Securities in
San Francisco.
In economic news, the core personal consumption
expenditures price index -- the Federal Reserve's preferred
measure of inflation -- moderated in April from the previous
month, easing inflation fears.
But a Reuters/University of Michigan gauge of consumer
confidence fell to a 28-year low in May, keeping stock gains in
check. A separate report showed business activity in the U.S.
Midwest contracted for May for the fourth consecutive month,
but the rate of downturn moderated.
(Editing by Leslie Adler)
