* Investors worry about U.S. automakers' prospects
* Apple among big-cap techs pushing Nasdaq higher
* Dow up 0.8 pct, S&P up 0.7 pct, Nasdaq up 2.2 pct
* For up-to-the-minute market news, please click on
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By Leah Schnurr
NEW YORK, Dec 12 (Reuters) - U.S. stocks rose on Friday on
hopes that a lifeline for struggling U.S. automakers could
still materialize, while investors bet the large stockpiles in
cash at technology companies will help them weather the
economic downturn.
In the latest in the U.S. automakers' attempt to secure a
financial rescue, the White House said it could be willing to
provide emergency funding to the struggling auto industry, the
day after Congress failed to approve a deal. For details,
see[].
Gains by the Nasdaq outpaced the other two major indexes
as investors scooped up big-cap technology shares. Apple
helped lift the Nasdaq, rising more than 3 percent. This year,
the Nasdaq is down 42 percent, underperforming the Dow's drop
of about 35 percent.
"The expectation is that tech will be one of the first,
not the last of the sectors to rebound," said Michael James,
senior trader at regional investment bank Wedbush Morgan in
Los Angeles.
James pointed out that investors have shrugged off
disappointing news from technology companies, including Texas
Instruments <TXN.N>.
The Dow Jones industrial average <> rose 64.59 points,
or 0.75 percent, to end at 8,629.68. The Standard & Poor's 500
Index <.SPX> added 6.14 points, or 0.70 percent, to 879.73.
The Nasdaq Composite Index <> jumped 32.84 points, or
2.18 percent, to 1,540.72.
The day's gains come as the broad market has been trying
to recover from the S&P 500's 11-year intraday low hit on Nov.
21. During the course of the day, the three major U.S. stock
indexes rebounded from a drop of about 2 percent or more at
the open.
So far this year, the broad S&P 500 is down about 40
percent. But since the November low, the S&P has pulled itself
back up almost 19 percent.
For the week, the Dow was down 0.1 percent, its second
straight week of declines.
But the S&P was up 0.4 percent for the week and the Nasdaq
rose 2.1 percent.
Investor confidence took another hit with the arrest of
former Nasdaq Chairman Bernard Madoff, who was charged with
running a $50 billion "Ponzi scheme" in what would be one of
the largest fraud cases ever. [].
Uncertainty over the fate of automakers kept shares of GM
and Ford vacillating between positive and negative territory.
Ford ended up 4.8 percent at $3.04, while GM lost 4.4 percent
to $3.94.
GM, Ford and Chrysler employ nearly 250,000 people
directly and 100,000 more jobs at parts suppliers could depend
on their survival. The industry fears the failure of one
Detroit manufacturer could drag down the other two.
The Nasdaq's major gainers included iPhone and iPod maker
Apple <AAPL.O>, up 3.4 percent at $98.27, while Intel <INTC.O>
gained 5.3 percent to $14.75.
Among blue-chip stocks, United Technologies Corp <UTX.N>
was the Dow's biggest boost, a day after the diversified
manufacturer gave some reassuring comments on its outlook.
United Technologies' shares rose 3.7 percent to $48.82 on the
New York Stock Exchange.
On the downside, Boeing Co <BA.N> was the Dow's biggest
drag, falling 2.7 percent to $39.20 a day after the large U.S.
aircraft manufacturer said it was delaying its 787 Dreamliner
jet for the fourth time.
Volume was low on the New York Stock Exchange, with about
1.44 billion shares changing hands, below last year's
estimated daily average of roughly 1.90 billion, while on
Nasdaq, about 1.91 billion shares traded, below last year's
daily average of 2.17 billion.
Advancing stocks outnumbered declining ones on the NYSE by
a ratio of about 3 to 2, while on the Nasdaq, two stocks rose
for every one that fell.
(Editing by Jan Paschal)
