Stocks edge higher as investors look to banks

Broad stock indexes rose Tuesday as investors betting on an improving economy bought stocks of raw-material producers and tech companies.

Commodity stocks rose along with futures prices on hope that a return of economic growth will boost demand for basic materials. A falling dollar also helped push commodity prices higher, and oil settled above $70 a barrel for the first time this year.

An index of 19 major commodities jumped 2.5%. Material stocks in the Standard & Poor’s 500 rose 2.3%, more than any other main industry group.

U.S. Steel rose 7.9%, while oil field service company Schlumberger gained 2.7%.

Technology stocks advanced on an improved profit forecast from chip maker Texas Instruments. Intel and Cisco Systems also have issued optimistic comments recently, bolstering the case for technology shares.

Texas Instruments shares jumped 6.3%.

The Dow Jones industrial average edged down 1.43 points to 8,763.06. The broader S&P; 500 index rose 3.29 points, or 0.4%, to 942.43, and the technology-heavy Nasdaq composite index jumped 17.73 points, or 1%, to 1,860.13.

The Russell 2,000 index of smaller companies rose 0.6%.

About three stocks gained for every two that fell on the New York Stock Exchange.

Financial shares were mixed after the Treasury Department said it would allow 10 large banks to repay $68 billion in federal bailout money. Those companies are among the 19 given money from a rescue fund created last fall at the height of the financial crisis.

Among banks allowed to repay bailout money, American Express rose 5%, while JPMorgan Chase slipped 0.4%.