U.S. stocks rose in volatile trading on Friday, shrugging off initial losses after the Federal Reserve chairman said the recovery has softened more than expected and Intel Corp
Major averages fell sharply immediately after Fed Chairman Ben Bernanke's comments and the Intel forecast -- which came within minutes of each other.
Bernanke told central bankers at a conference in Jackson Hole, Wyoming, the recovery had softened more than expected and that the central bank was ready to take further steps if needed to spur the stumbling economy.
Technology bellwether Intel Corp
Intel maybe kind of sums it up if you want to look at why the market is up, said Stephen Massocca, managing director at Wedbush Morgan in San Francisco. The economy stinks, but at this point, is that discounted in the market that the economy stinks? And have stocks gotten too cheap?
The Dow Jones industrial average <.DJI> was up 58.65 points, or 0.59 percent, at 10,044.46. The Standard & Poor's 500 Index <.SPX> was up 5.27 points, or 0.50 percent, at 1,052.49. The Nasdaq Composite Index <.IXIC> was up 6.98 points, or 0.33 percent, at 2,125.67.
Markets opened higher after a better-than-expected reading on second-quarter gross domestic product, though the report showed GDP slowed more sharply than initially thought.
The GDP number was a hurdle cleared, but we'd still leave the party hats in the box, said John Stoltzfus, senior market strategist at Ticonderoga Securities in New York. It's a near-term blow to the double-dip crowd, but the economy clearly remains weak.
(Additional reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)