Markets extend strong rebound
NEW YORK — The stock market closed out its best week of the year on Friday as investors focused on company earnings and brushed off another weak economic report.
Campbell Soup climbed as it reported earnings that beat the estimates of Wall Street analysts.
Cliffs Natural Resources, a mining company, jumped as its earnings beat analysts' expectations and the company named a chief executive officer.
The Standard & Poor's 500 has wiped out almost all of its loss for the year from a big slump in January, and is now just 10 points below its record close of 1,848 reached on Jan. 15. Stocks slumped last month because of concerns about the outlook for growth in China and other emerging markets and worries about the health of the U.S. economy.
“For all practical purposes, we're back,” said Jonathan Golub, chief U.S. market strategist at RBC Capital Markets. “We've effectively recovered this pullback.”
The S&P 500 rose 8.80 points, or 0.5 percent, to 1,838.63. For the week, the index rose 2.3 percent.
The Dow Jones industrial average rose 126.80 points, or 0.8 percent, to 16,154.39. The Nasdaq composite rose 3.35 points, or 0.1 percent, to 4,244.03, its highest close since July 2000.
The stock market got a lift on Tuesday when Janet Yellen, the new head of the Federal Reserve, said she would continue the central bank's low-interest rate policies and as Congress moved toward raising the nation's borrowing limit without the political drama of last year.
The stock market started lower on Friday with news that factory output fell sharply in January. Manufacturers made fewer cars and trucks, appliances, furniture and carpeting, as the recent cold spell ended five straight months of increased production.
The Federal Reserve said factory production plunged 0.8 percent in January, following gains of 0.3 percent in both December and November.
Investors are hopeful that much of the weakness seen in recent economic reports is due in large part to the unusually cold winter weather this year, said Kristina Hooper, U.S. investment strategist at Allianz Global Investors.
“Investors are choosing to look at very mixed data through a positive lens,” Hooper said.
In government bond trading, the yield on the 10-year Treasury note rose to 2.75 percent from 2.73 percent Thursday.
U.S. financial markets will be closed Monday for Presidents' Day.
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.
- Consumer, core prices inch up
- Highmark seeks double-digit increase for more benefits, heavy use
- SEC approves looser mortgage lending guidelines
- Air-bag deaths draw scrutiny of Congress as recalls widen
- FedEx investing another $1.2B in growth projects at FedEx Ground in Moon
- Nervous investors crunch stocks
- Hackers rip into heart of open-source software
- Natrona Bottling Co. keeps soda pop operation focused on craft, taste
- Amid struggles, top fiscal executive to leave EDMC
- Large-scale batteries are integral in shift to renewable energy
- Calgon Carbon poised for explosive growth