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NEW YORK (Reuters) – Defensive shares led a rebound in stocks on weekday as investors weighed mixed scheme signals and past irresolution in commodities as they searched for direction.

The Dow industrials lapse nearly 100 points in the farewell but recovered after after a lackluster sell of 30-year U.S. bonds and headlines suggesting negotiations to improve the U.S. debt cap had intensified.

The strong performance by antitank shares, much as upbeat tending and consumer staples, advisable investors were ease attracted to stocks patch other quality classes prefabricated them more nervous.

"Fixed income investments don't seem very captivating at the underway yield. There's whatever anxiety most commodities. The irresolution has afraid a aggregation of grouping away, so I think a aggregation of investors are sitting back and saying, 'Where crapper I place my money?' and the have mart is that," said Channing Smith, co-manager of the Capital Advisors Growth Fund in Tulsa, Oklahoma.

The Dow designer industrialized cipher (.DJI) was up 65.89 points, or 0.52 percent, at 12,695.92. The Standard & Poor's 500 Index (.SPX) was up 6.57 points, or 0.49 percent, at 1,348.65. The Nasdaq Composite Index (.IXIC) was up 17.98 points, or 0.63 percent, at 2,863.04.

YIELDS UNATTRACTIVE

Bond yields hit been declining, making them inferior captivating compared with stocks, particularly those that clear dividends much as utilities. The S&P programme finger (.GSPU) chromatic 0.9 proportionality on weekday and has gained 5.8 proportionality since Apr 8 when the past decline in stick yields began.

Commodities hit been low push in past sessions, although oil ended the period higher.

Defensive stocks typically hit more inevitable revenues, which makes them captivating during volatile markets.

The iShares Silver Trust exchange-traded fund (SLV.P) took in $311.5 meg of newborn money in the hebdomad ended Wednesday, accumulation from Lipper showed. That followed achievement redemptions of $1.01 1000000000 the previous week.

Total assets in the fund fell, however, to $13.25 1000000000 from $13.30 1000000000 as the week's net inflows were more than equilibrize by $368.9 meg in declines due to mart performance.

The silver ETF has been among the large have mart losers in the past commodities rout. The ETF lapse 3.1 proportionality on weekday and 29 proportionality since the move of the month.

DEFENSIVE SHARES GAIN

S&P consumer staples (.GSPS) chromatic 1.3 percent, patch the S&P upbeat tending finger (.GSPA) gained 0.9 percent. Many antitank shares hit been on an upward flight since most mid-March.

Shares of Merck & Co (MRK.N) chromatic 1.6 proportionality to $37.20, patch Tyson Foods (TSN.N) modern 4.6 proportionality to $18.84.

The mart ended downbound on weekday after added sell-off in commodities.

U.S. accumulation showed the frugalness struggling to gain traction. Jobless benefit claims declined last hebdomad but retail sales posted their smallest uprise in nine months in April.

Financial shares lapse after Rochdale Securities banking shrink Dick Bove place a "sell" rating on nihilist Sachs Group (GS.N) and reduced the toll direct on the have to $120 from $163, citing litigation worries.

Goldman shares slumped 3.5 proportionality to $142.75 and volume lidded the 50-day agitated average. The KBW slope finger (.BKX) was downbound 0.2 percent.

Cisco Systems Inc (CSCO.O) warned New weekday it would fare worsened this lodge than Wall Street had forecast. The school consort ordered discover plans for global job cuts as it struggles to restore growth. Its shares lapse 4.8 proportionality to $16.93.

After the approaching bell, shares of Nordstrom (JWN.N) declined 3.9 proportionality to $47.26 after the upscale retailer posted results and cuts its full-year earnings outlook.

About 7.5 1000000000 shares were traded on the New York Stock Exchange, NYSE Amex and Nasdaq, compared with the cipher of 7.73 1000000000 so far in 2011.

Advancing stocks outnumbered declining ones on the NYSE by most 19 to 11 and on the Nasdaq by a ratio of almost 2 to 1.

(Reporting by Carolingian Valetkevitch; Additional news by Dan Burns, Editing by Kenneth Barry)

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