Dow rises as financial stocks rebound

NEW YORK (AP) — The stock market ended mixed Monday after investors set aside some of their concerns about the government’s case against Goldman Sachs.

The Dow Jones industrial average rose 73 after sliding for much of the day. The advance followed a drop of 126 points Friday after the Securities and Exchange Commission filed civil fraud charges against Goldman Sachs related to mortgage investments.

The Dow rose 73.39, or 0.7 percent, to 11,092.05. The Standard & Poor’s 500 index rose 5.39, or 0.5 percent, to 1,197.52, while the Nasdaq composite index slipped 1.15, or 0.1 percent, to 2,480.11.

The Standard & Poor’s index rose, while the Nasdaq composite index fell.

Analysts said reports that the SEC voted 3-2 along party lines to press its case against Goldman Sachs eased some of investors’ worries. Investors seemed placated by the fact the vote wasn’t unanimous. A rebound in Goldman shares helped lift stocks.

Investors have been concerned about potential repercussions tied to the charges against Goldman. The suit comes just as Congress is taking up a bill to overhaul regulation of the financial industry. The measures could extend to the types of risky securities at the center of the Goldman case.

“Is financial reform going to be a big setback for financial company earnings?” said Colleen Supran, a portfolio manager at Bingham, Osborn & Scarborough in San Francisco. “And what is that going to mean for overall earnings for, say, the S&P, which is what we really care about.”

Meanwhile, airline stocks fell after most European airports remained closed for a fifth day following the spread of ash from a volcano in Iceland. Analysts estimated that airline losses topped $1 billion. American Airlines parent AMR Corp. fell 4.3 percent, while United parent UAL Corp. lost 5.1 percent. The company’s shares slipped in after-hours trading.

Technology stocks lagged ahead of a report from International Business Machines Corp. The company said after the closing bell that its first-quarter profit rose in part because of higher revenue. The stock slipped in electronic trading.