But the gradual rally has not lifted all stocks, and analysts still fret over the lack of a consistent leading sector. UAL, the parent of United Air Lines, was mostly lower before regaining ground late in the day. The airline warned analysts late Friday that its second-quarter earnings will fall below well estimates. Volume remained light as traders already began looking ahead to Friday, when the government's producer price index is expected to offer signals about inflation and perhaps an indication of whether the Federal Reserve will raise interest rates to keep the economy from overheating. Stocks have slipped in the weeks since the Fed warned it might raise rates, and volume has been lower than normal as Wall Street weighs the impact of a possible increase on corporate profits.
Many analysts say the dip has finally brought buyers back into the market.
There's a general feeling that bargains are available. NYSE consolidated volume totaled 798.47 million shares, compared with 836.66 million in the previous session. The NYSE composite index rose 2.42 to 636.94, and the American Stock Exchange composite index fell 2.83 to 778.15. The Russell 2000 index of smaller companies rose 4.32 to 446.65. Overseas, Japan's Nikkei stock average rose 1.07 percent.