* Shares bounce back from Tuesday lows
* Staples, Costco rise after Goldman upgrades
* Indexes up: Dow 0.5 pct; S&P 0.7 pct; Nasdaq 0.9 pct
* For up-to-the-minute market news see []
(Updates to close)
By Edward Krudy
NEW YORK, Sept 8 (Reuters) - U.S. stocks rose on Wednesday,
as investors latched onto positive news out of Europe in the
latest in a string of low-volume sessions suggesting little
confidence in market direction.
Bank stocks recovered from Tuesday's losses, with JPMorgan
Chase and Co <JPM.N> up 2.2 percent and the BKW bank index
<.BKX> up 1.7 percent. A successful Portuguese debt offering as
well as news that nationalized Irish lender Anglo Irish Bank
would wind down assets pulled global equity markets higher.
After last week's sharp bounce in equity markets halted the
August sell-off, the S&P is nearing the top of its recent
trading range. Low volume suggests investors aren't entirely
convinced the market can move substantially higher.
"Overall we're still locked in a fairly narrow trading
range, and that's consistent with the jerky pattern of how the
economy here and in developing worlds is unfolding," said
Joseph Battipaglia, market strategist at Stifel Nicolaus in
Yardley, Pennsylvania.
The Fed's Beige Book compilation of anecdotal reports
confirmed the economy had begun to slow over the summer, a fact
that sent stocks sharply lower in August but that had little
impact on Wednesday's session.
The Dow Jones industrial average <> rose 46.32 points,
or 0.45 percent, at 10,387.01. The Standard & Poor's 500 Index
<.SPX> added 7.03 points, or 0.64 percent, at 1,098.87. The
Nasdaq Composite Index <> climbed 19.98 points, or 0.90
percent, at 2,228.87.
On Tuesday, stocks fell in light volume as investors seized
on renewed concerns about European banks' exposure to sovereign
debt to sell shares after strong gains last week when the S&P
500 jumped more than 5 percent in three days.
This week has been shortened by the Labor Day holiday on
Monday, while the Rosh Hashanah holiday could mean staffing and
trading volume are reduced on Thursday and Friday, providing
the potential for more volatility.
The S&P 500 is appearing to settle into the upper end of a
recent trading range between 1,040 and 1,130.
An inverse head and shoulder formation has developed in the
S&P 500 chart, a sign technical analysts believe could show the
market has bottomed. The "neck line" is around the 1,130 mark,
suggesting a possible breakout rally if stocks move above
that.
"You're in the process of building a base here," said Marc
Pado, U.S. market strategist at Cantor Fitzgerald & Co in San
Francisco. "The June, August highs of 1,130 are the key points,
if you break above that then the year-end projection ...
becomes a fairly obvious upside projection."
U.S.-traded shares of BP Plc <BP.L><BP.N> rose 3.2 percent
at $38.37 after the company issued an internal report on the
rig explosion that led to the worst U.S. oil spill ever and the
death of 11 crew members.
BP deflected much of the blame, claiming drilling
contractor Transocean Ltd <RIG.N> missed danger signs and
criticized the cementing of the well conducted by Halliburton
Co <HAL.N>. Transocean gained 1.3 percent to $53.74, while
Halliburton added 1.2 percent to $30.21. For details see
[].
Staples Inc <SPLS.O> was up 2 percent to $19.04, and Costco
Wholesale Corp <COST.O> rose 1 percent to $59.21 after Goldman
Sachs upgraded their stocks. []
About 6.38 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and Nasdaq, far below
last year's estimated daily average of 9.65 billion.
Advancing stocks outnumbered declining ones on the NYSE by
a ratio of about 2 to 1.
(Editing by James Dalgleish)
