Stocks close higher. Microsoft surges.
Stocks rose on Wall Street Friday with a big jump in Microsoft lifting the Dow Jones Industrial average. Stocks stumbled at mid-morning after the government reported a plunge in new home sales, then drifted steadily higher in the afternoon.
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Microsoft had its biggest gain in four years after CEO Steve Ballmer said he will retire. Ballmer took the helm of the software company from founder Bill Gates in 2000. The company has struggled to adapt as consumers switch from desktop computing to mobile devices
The giant software company is part of the 30-member Dow and its surge contributed more than a third of the index's advance.
The Dow closed up 46.77 points, or 0.3 percent, at 15,010.51. The index closed down 0.5 percent for the week and is 3.2 percent lower for the month.
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Stocks have sagged in August on concerns that the Federal Reserve will start to pull back on its economic stimulus. The Fed has been buying $85 billion in bonds every month to hold down long-term interest rates and encourage lending.
Minutes from the Fed's July meeting released on Wednesday failed to give investors any clear indication of when the central bank will start slowing its bond purchases.
Some investors are using the summer slump as an opportunity to buy stocks at less expensive prices, said Joe Bell, a senior equity analyst at Schaeffer's Investment Research. Stocks climbed to record highs at the start of the month.
Stocks are "getting more attention in the mainstream," said Bell. "People are buying this pullback right now."
The stock market stumbled at mid-morning after the government reported a plunge in new home sales, then drifted steadily higher in the afternoon.
Major homebuilders fell after the Commerce Department said Americans cut back sharply on buying homes last month as mortgage rates rose. Sales of newly built homes fell at an annual rate of 13.4 percent in July. D.R. Horton lost 55 cents, or 3 percent, to $18.73 and Lennar fell 96 cents, also 3 percent, to $32.60.