NEW YORK, Nov 16, 2007 (AP) -- Stocks rose in early trading Friday as investors searched for bargains following a three-week losing streak.

Concerns about consumer spending and the still unfolding global credit crisis has driven some well-known stocks _ especially in the financial services sector _ to lows for the year. Bargain hunters were seen rushing into the market ahead of the weekend to take advantage of lower prices.

Investor sentiment got a boost from Morgan Stanley's decision to raise its rating on Hewlett-Packard Co. to an "overweight" from "equal weight." The upgrade on the largest maker of printers appeared to help offset some concerns about consumer spending and further turmoil in the credit markets.

However, investors received bad news from Starbucks Corp., which slashed its earnings forecast for the fourth quarter after it reported traffic at stores open at least 13 months dropped by 1 percent _ the first time a decline has ever been reported by the coffee retailer. The company said late Thursday it also plans to slow the pace of U.S. store openings.

In addition, FedEx Corp. lowered its earnings expectations for the fiscal second quarter and full year, citing rising fuel costs and a troubled U.S. freight market.

In early trading, the Dow Jones industrial average rose 69.91, or 0.53 percent, to 13,179.96.

Broader stock indicators also rose. The Standard & Poor's 500 index advanced 6.97, or 0.48 percent, to 1,458.12, and the Nasdaq composite index rose 7.49, or 0.29 percent, to 2,626.00.

Bonds fell as stocks gained. The yield on the benchmark 10-year Treasury note rose to 4.16 percent from 4.14 percent late Thursday.

Investors appeared to look past a drop in industrial production in October _ the sharpest decrease in nine months. The Federal Reserve said output at the nation's factories, mines and utilities fell by 0.5 percent last month, a much worse outcome than had been expected. The report found a big drop in utility output and continued troubles in autos and housing-related industries.