Solid advance on Wall Street

Wall Street advanced solidly today to finish the week higher as oil prices cooled and investors embraced signs that the economy could move forward despite Hurricane Katrina’s devastation of the Gulf Coast.

Falling energy prices lent to a brighter economic picture in Katrina’s wake, with crude oil sliding despite worries about record-high energy costs this winter and continued refinery shutdowns and gas futures slipping below 2dollars a gallon.

Investors also anticipated a burst of activity once reconstruction begins in the Gulf region.

“The market seems to be concentrating on the future rebuilding of the devastated area, and I think that’s what’s keeping the market from declining,” said Peter Cardillo, chief strategist at S W Bach & Co.

Revised revenue and earnings outlooks from chip makers Texas Instruments and Intel Corp late Thursday bolstered the market with indications that consumer spending remains healthy.

Texas Instruments raised its quarterly estimates – fuelling hopes for increased electronics demand and calming fears of a spending slowdown – while rival Intel Corp refined its expected targets.

The Dow Jones industrial average climbed 82.63, or 0.78%, to 10,678.56.

Broader stock indicators also gained ground. The Standard & Poor’s 500 index rose 9.81, or 0.8%, to 1,241.48, and the Nasdaq composite index advanced 9.48, or 0.44%, to 2,175.51.