NEW YORK, Dec. 4 (UPI) -- Stock prices on the New York Stock Exchange and the Nasdaq Stock Market were slightly higher in moderate trading at midday Tuesday, supported by positive comments about the semiconductor equipment sector.
The blue-chip Dow Jones industrial average, which fell 87.60 points Monday, was ahead 8.70 points to 9,772.60. The tech-heavy Nasdaq composite index, which lost 25.68 points in the previous session, was ahead 13.11 points to 1,918.01.
The broader New York Stock Exchange composite index was ahead 0.56 to 575.85, while the Standard & Poor's 500 index was ahead 1.30 to 1,131.20.
The American Stock Exchange composite index was ahead 0.32 points to 817.78 while the Russell 2000 Index was ahead 2.90 to 459.93.
Big Board volume rose to an estimated 511.50 million shares from 494.80 million shares changing hands during the same period Monday.
Analysts said stocks inched higher supported by positive comments about the semiconductor equipment sector from UBS Paine Webber.
The firm issued a positive note on semiconductor equipment, saying we are near a bottom now.
But, experts said, developments outside the financial community threatened any attempt to rally.
Internationally, Israel fired rockets at a building next to where Palestinian leader Yassir Arafat was stationed. The attacks were the latest in response to a series of weekend bombings that killed at least 25 people.
On Monday, U.S. Homeland Security Director Tom Ridge issued a new security alert, warning that another terrorist attack within the United States was possible.
And, analysts said Tuesday's session constituted something of a nadir in the news cycle.
No bankruptcies, no earnings out of bellwether companies, no fresh insight into economic conditions. But as there are times to harvest, so there are opportunities to sow.
The big event is expected to take place following the close of trading, when Cisco Systems meets with analysts to discuss the outlook for the kind of communications gear it makes.
Experts noted the market brushed aside a New York Times report that Federal Reserve officials expect a modest and gadual recovery in the economy next year rather than the quick turnaround many investors and forecasters are expecting.
The Times said the officials said the recovery could be tempered by a variety of forces, from high levels of consumer and corporate debt to the reluctance of companies to invest in new factories and equipment at a time of uncertainty in the economy and the fight against terrorism.
The Times reported that Fed officials said they also saw evidence that the recession could be coming to an end relatively soon.
Meanwhile, Redbook Research's latest indicator of U.S. retail sales showed sales were up 2.4 percent in the fourth week of November, compared with the same period in October.
The report also said sales for the last week of November versus the same week a year ago rose 2.7 percent. Sales for the month of November versus those of November for the previous year rose 2.9 percent.
The report noted that during the latest week, sales of seasonal merchandise continued to lag with retailers citing unseasonable warm temperatures. However, flooding and snow on the West Coast impeded sales growth for that region.
Stores with a broad merchandise base reported gains in seasonal hard lines such as toys and electronics, the report said.
And, the Bank of Tokyo-Mitsubishi-UBS Warburg Retail Chain Store Sales Index fell 1.7 percent in the week ended Dec. 1 from the week before, on a seasonally adjusted, comparable-store basis.
Meanwhile, U.S. Treasury prices inched higher amid a lack of economic news. The 10-year bond added 3/32 to 102 17/32. Its yield, which moves in the opposite direction of its price, slipped to 4.67 percent from 4.69 percent late Monday.
In Europe, stock prices ended higher in moderate trading in London, Frankfurt and Paris, lifted by strength in the oil patch.
The London International Stock Exchange's blue-chip FTSE-100 index gained 46.3 points, or 0.90 percent, to 5,210.9. The German DAX index rose 28.81 points, or 0.58 percent, to 5,017.25 and the French CAC-40 index rose 65.40 points, or 1.47 percent, to 4,529.24.
Analysts said stocks were lifted by strength in oil stocks on the escalating violence in the Middle East and hopes that Russia will increase production cuts.
Earlier in Asia, prices on the Tokyo Stock Exchange ended modestly higher, supported by strength in high-tech stocks despite weakness in the banking sector ignited by growing concerns over credit risks. Japan's blue-chip Nikkei Average of 225 selective issues, which sank 326.82 points Monday, rose 82.03 points, or 0.79 percent, to 10,452.65, recovering from a drop of about 0.40 percent earlier in the session.
Analysts said the Nikkei bounced back in the afternoon session on gains in technology stocks, even after Moody's Investors Service cut the country's credit rating by one notch to Aa3 from Aa2, blasting Japan's economic reforms as elusive.
The cut to Japan's sovereign rating served to further undermine credit confidence, after recent corporate failures, experts said.
Tech stocks rose on recent yen weakness, but bank stocks were hit hard again on credit concerns as well as continuing fears over possible collateral damage from the Enron failure.
Elsewhere in Asia, prices on the Hong Kong Stock Exchange rose to their highest level in 14 weeks, lifted by gains in property shares following aggressive bidding in the government land auction.
The blue-chip Hang Seng Index jumped 272.13 points, or 2.44 percent, to 11,427.30 after trading in a range of 11,076.32 and 11,429.68. The close was the highest since Aug. 21, when the index closed at 11,440.35.
The property sector led the market following news that land sales shot up 88 percent in November from the previous month. Gains for the sector increased as bidding at the government land auction was fierce and winning bids beat market expectations.
Prices on the Taiwan Stock Exchange rose to their highest level in five months after a late session rally fueled in part by optimism about the monthly sales reports of technology firms. The Weighted Price Index jumped 119.82 points, or 2.58 percent, to 4,766.43 -- its highest level since July 3.
Market sentiment was lifted after the ruling Democratic Progressive Party (DPP) declared victory in Saturday's election, giving President Chen Shui-bian a better control on the island's politics and economical issues.
Meanwhile, prices ended slightly lower on the South Korean Stock Exchange, pressured by Monday's losses on Wall Street. The Korea Composite Stock Price Index, or Kospi, slipped 0.76 point, or 0.12 percent, to 649.90.
But, the losses were capped by heavy trading volume for Hynix Semiconductor and other investors hopeful that the Korean economy has hit bottom.
Elsewhere around the region, prices on the Australian Stock Exchange closed marginally lower. The blue-chip All Ordinaries Index slipped 5.40 points, or 0.17 percent, to 3,263.20.
Analysts said the mining sector remained strong but gains were offset by continued weakness in the telecom and media shares.
