Upbeat earnings help lift stocks
Strong company earnings boosted stocks on Friday. Investors also got the chance to add to their holdings after declines earlier in the week.
Nike reported a surge in quarterly profit, sending its stock price to a record. Tiffany topped earnings predictions, boosted by demand from customers in Asia.
Investors also were drawn by a pause in the market's big run-up. The Standard & Poor's 500 index logged its second weekly decline of the year, despite Friday's gains.
The damper on stock markets was caused by another worrisome chapter in Europe's debt crisis, and some disappointing corporate news. The Mediterranean island nation of Cyprus, a banking haven, is struggling to devise a plan to avoid financial collapse.
Stocks also were weighed down on Thursday by weak sales from Oracle. That news brought down technology stocks.
FedEx ended the week 10 percent lower; it reported a drop in quarterly profit and cut its annual earnings forecast on Wednesday. The company is a gauge of the economy because so many shoppers and businesses use its shipping services.
On Friday, investors took advantage of the market's down week and ramped up their stock buying.
A resilient global economy has encouraged investors to pick up stocks on any dips, said Ron Florance, managing director of investment strategy at Wells Fargo Private Bank.
“We still have an astonishing amount of money sitting on the sidelines,” Florance said.
The Dow Jones industrial average rose 90.54 points, or 0.6 percent, to 14,512.03 on Friday. The Standard & Poor's 500 index rose 11.09 points, or 0.7 percent, to 1,556.89. The Nasdaq composite gained 22.40 points, or 0.7 percent, to 3,245.
Nike shares hit an all-time high, rising $5.93, or 11 percent, to $59.53 over the company's reported 55 percent spike in quarterly net income.
Tiffany rose $1.32, or 1.9 percent, to $69.23 with its strong fourth-quarter earnings.
For the week, though, the S&P 500 was seven points, or 0.3 percent, lower than it was at the start of trading on Monday.
The index last logged a weekly decline on Feb. 22, falling 0.3 percent, after investors were spooked by the minutes from the Federal Reserve's January policy meeting. The minutes revealed disagreement over how long to keep buying bonds in an effort to boost the economy.
The Dow shed a fraction of a percentage point this week.
A pause in the stock market run-up is now due because gains this year overstate the improvement in the economy, said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.
The biggest risk to the market run-up this year is the increasing pressure the Fed faces to end its stimulus program. That could happen if the economy continues to improve and stock markets rise, Sandven said.
The yield on the 10-year Treasury note rose to 1.93 percent from 1.92 percent.
Among other stocks making big moves Friday;
• Micron Technology rose 97 cents, or 10.7 percent, to $10.05 despite reporting a loss in its fiscal second-quarter after market close on Thursday. The chipmaker said revenue grew 3 percent, to $2.08 billion, better than analysts had expected.
• Anacor Pharmaceuticals Inc. climbed $1.24, or 25.6 percent, to $6.08 on Friday after the drug developer reported strong data from a mid-stage study of a potential chronic rash treatment.
• Marin Software, a marketing software company, rose $2.26, or 16.1 percent, to $16.26 on its market debut. The San Francisco-based company raised $105 million in its initial public offering.
• AK Steel Holding fell 16 cents, or 4.6 percent, to $3.31, after projecting a larger-than-expected first-quarter loss because a previously expected seasonal increase in demand for steel hasn't materialized.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- UPMC earnings turn positive, but pressures mount
- EDMC to cut costs, roll out new grant
- Energy sector powers Pa. pace
- Obama weighs broader move on immigration solutions
- Discretionary purchases take off as consumer confidence shows strength
- Cash stash bolsters U.S. Steel
- Sales, profit fall at retailer American Eagle Outfitters
- Worker satisfaction with job security at a new high
- Government may be trying to force FedEx into settlement, experts say
- Kennametal’s CEO to retire at yearend
- Stocks shake off Fed’s talk of stepping up interest rate hike