Stocks rallied as gains in the tech sector and reassuring comments from German Chancellor Angela Merkel countered disappointing regional manufacturing data. Weekly jobless claims rose by 2,000 to 366,000, below analysts' estimate of 368,000. Housing market data also came in better than expected, with housing starts up almost 22% from a year earlier, while building permits rose nearly 30% from July 2011. The Philly Fed manufacturing index came in at minus 7.1, weaker than the forecast of minus 5, improving from minus 12,9 in July. Tech stocks led the broader gains with Cisco soaring 9.6% after the co. better-than-expected first-quarter results and unveiled a plan to raise its quarterly dividend by 75%. Electronic Arts closed 5.5% higher on buyout rumors. On the downside, Facebook slid 6.7% to a new record low of $19.69 as the post-IPO lock-up on some 271 million insider shares expired. Also, both Wal-Mart and Sears Holdings missed on revenue expectations, but raised its forecast for fiscal-year 2012 earnings. In the evening trade Marvell Technology Group stumbled 8.1% as the co.’s quarterly results failed to meet analysts’ expectations.Inched higher on moderate trading volumes.
