* Microsoft climbs after announcing CEO Ballmer's retirement
* Homebuilders fall after weak new-home sales report
* Indexes up: Dow 0.3 pct, S&P 0.4 pct, Nasdaq 0.5 pct
By Rodrigo Campos
NEW YORK, Aug 23 (Reuters) - U.S. stocks rose in light
trading on Friday, led by a jump in Microsoft shares, as trading
took place without interruption a day after the Nasdaq stock
exchange suffered an unprecedented, three-hour trading halt.
Microsoft shares posted their largest daily
percentage gain in more than four years after the head of the
world's largest software company, Steve Ballmer, announced he
will retire within 12 months.
The stock closed up 7.3 percent at $34.77 and was the
largest contributor to the advance on the three major indexes.
"The big news today is the succession at Microsoft, but
beyond that it's pretty quiet," said Dan Veru, chief investment
officer at Palisade Capital Management in Fort Lee, New Jersey.
The Dow Jones industrial average rose 46.77 points or
0.31 percent, to 15,010.51, the S&P 500 gained 6.54
points or 0.39 percent, to 1,663.5 and the Nasdaq Composite
added 19.085 points or 0.52 percent, to 3,657.792.
Volume was among the lowest of the year with about 4.9
billion shares changing hands on the New York Stock Exchange,
the Nasdaq and NYSE MKT, far below the daily average so far this
year of about 6.3 billion shares.
Trading volume was only slightly higher than Thursday's 4.4
billion, affected by a technological problem that shut down
trading in Nasdaq securities for three hours in the afternoon.
On Friday, Robert Greifeld, chief executive officer of
Nasdaq OMX said the exchange resolved the technical
problems that led to the halt but could not guarantee there
would never be future glitches. Nasdaq shares gained 1.2 percent
to close at $30.83.
Friday's gains helped the S&P 500 and Nasdaq Composite end a
two-week losing streak, but the Dow posted its third consecutive
weekly decline. For the week the Dow fell 0.5 percent, the S&P
gained 0.5 percent and the Nasdaq added 1.5 percent.
Economic data showed sales of new single-family homes fell
by 13.4 percent in July to an annual rate of 394,000 units, well
below expectations of 490,000 units.
The data weighed on homebuilder stocks, with PulteGroup
down 1.6 percent to $16.06 and Toll Brothers off
3.9 percent to $31.19. The PHLX housing sector index lost
Pandora Media Inc slumped 12.9 percent to $18.91 after
the Internet radio service said late Thursday that rising
expenditures to acquire music and expand its sales force would
push fiscal 2014 earnings below analyst expectations.
Aeropostale Inc tumbled 20.2 percent to $8.76 after
the teen apparel retailer forecast a steep third-quarter loss.
Shares of Autodesk rallied 7.7 percent to $38.91
after earlier hitting $41.72, its highest level since April
Roughly two issues rose for every one that fell on the NYSE
and on Nasdaq 13 rose for every 11 decliners.