Reports send stocks up

Associated Press photo by RICHARD DREW -- Traders Timothy Nick, left, and David O'Day work on the floor of the New York Stock Exchange Wednesday. Stock indexes rose after two economic reports that were better than expected.

NEW YORK — A pair of encouraging economic reports helped nudge the stock market higher Wednesday. Measures of business activity in the service sector and job growth last month came in better than economists had expected.

The market’s gains were held in check by a slump in energy stocks and Hewlett-Packard ‘s 13 percent plunge. In a meeting with analysts and investors, Meg Whitman, H-P’s CEO, predicted weak earnings and sales for the foreseeable future. Whitman said a successful turnaround of the computer maker is a long way off. Profits will likely fall by more than 10 percent next year, she said. H-P’s stock lost $2.22 to $14.91.

The Dow Jones rose 12.25 points to close at 13,494.61. The Standard & Poor’s 500 index gained 5.24 points to 1,450.99. The Nasdaq composite index rose 15.19 points to 3,135.23.

“The price action today seems boring, but the economic data is pretty strong,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research.

But concerns over an economic slowdown in Europe, China and the U.S. helped push the price of crude oil down $3.75 to $88.14 a barrel. Energy stocks fell sharply as a result. After H-P, Chevron had the worst loss in the Dow, giving up $1.82 to $116.14.

“The U.S is looking better than a lot of places in the world,” Detrick said. “The big question is: Are they going to pull us down with them?”

Trading could remain calm this week while investors look ahead to the government’s monthly jobs report Friday and a new round of quarterly corporate earnings reports next week.

Economists expect the unemployment rate edged up to 8.2 percent in September from 8.1 percent in August. And the unofficial start to the earnings season starts next Tuesday when the aluminum company Alcoa posts its results.

The Dow and the S&P 500 have crept higher in the first week of October. The Dow is up 0.4 percent and the S&P 500 is up 0.7 percent.

In other news:

FAMILY DOLLAR: The discount chain surged $2.56 to $68.56 after posting stronger net income and sales. The store’s customers also spent more money on each sale.

MONSANTO: It fell $1.97 to $88.59. The purveyor of corn seeds, herbicides and other agricultural products posted a wider loss and reported sales that fell short of Wall Street’s expectation.

BEST BUY: It jumped 79 cents to $17.76 on reports that the company’s founder has teamed up with a group of private equity firms to take over the electronics chain.

TESCO: Britain’s largest supermarket operator says first-half profit fell 12 percent to $2.7 billion.

NOKIA: It plans to sell its headquarters in Finland as part of a cost-cutting program, but will maintain its corporate base in the country.