Earnings, oil prices extend stock gains

NEW YORK - Stocks managed to continue their gains in a second session Wednesday as a bright outlook from Oracle and better-than-expected results from chipmaker Texas Instruments lifted the technology sector.

Despite the day's strong trading, some analysts were skeptical about whether the gains would hold, particularly after three weeks of persistent declines. Stocks have not enjoyed three consecutive days of gains since the year began; they've also tended to lose momentum after robust starts, even in the face of good earnings and positive economic data - a pattern that has made investors extremely cautious.

"Everyone is looking deeply into earnings reports and guidance to see if there is something that justifies the declines that we've had," said Todd Clark, the head of listed equity trading at Wells Fargo Securities.

The Dow Jones industrial average rose 37.03, or 0.35 percent, to 10,498.59. The broader gauges also closed higher. The Standard & Poor's 500 index was up 5.66, or 0.48 percent, at 1,174.07. The Nasdaq composite index rose 26.14, or 1.29 percent, to 2,046.09.

Oil prices were volatile after the U.S. government and an industry group issued mixed reports on fuel inventories. The government's weekly report showed a jump in crude stores, a sharp drop in gasoline supplies and an expected draw in distillates. However, the American Petroleum Institute reported steep declines in all three categories.

The government's report of a build in crude alleviated pricing pressure, and crude futures decreased 86 cents to settle at $48.78 per barrel on the New York Mercantile Exchange.