By Barbara Kollmeyer, MarketWatch
Oil prices recover some from a drubbing
NEW YORK (MarketWatch) -- U.S. stocks edged lower in early trade
Friday but the main indexes were still on track to book modest
weekly gains.
The S&P 500 was on track to record its largest monthly gain
since October 2011.
The main benchmark was inching lower with eight of its 10 main
sectors trading in negative territory. The Dow Jones Industrial
Average fell slightly. The Nasdaq Composite was stuck in the red,
trading only 25 points away from the 5,000 level.
Ahead of the opening bell, the first revision to figures for
gross domestic product showed the U.S. economy grew at a slower
pace than originally estimated, but still the revision proved
better than expected. The economy grew at a revised 2.2% in the
fourth-quarter of 2014, the GDP report indicates
(http://www.marketwatch.com/story/us-fourth-quarter-gdp-trimmed-to-22-from-26-2015-02-27).
Jonathan Golub, Chief U.S. market strategist at RBC Capital
Markets, said that investors are usually more interested in
forward-looking data, such as ISM, rather than backward-looking GDP
data.
"Today's revision was already anticipated and when you annualize
quarterly data, those changes were meaningless. Besides, the data
were about what happened months ago. We think investors will care
more about Monday's ISM figures," Golub said.
Friday's mixed economic data provided little new insight and to
investors. The February reading of Chicago PMI tumbled to a 5 1/2
year low of 45.8, MNI Indicators said Friday. The number indicated
a contraction, impacted by West Coast port strikes and a harsh
winter. But pending-home sales rose in January to the highest level
since Aug. 2013, the National Association of Realtors reported
Friday. University of Michigan/Thomson Reuters consumer-sentiment
index dipped to 95.4 from January's 98.1.
Oil prices recover: A sharp drop in crude prices on Thursday was
unwinding as both WTI (CLJ5) and Brent crude gained nearly 2%,
which lent some support to energy names.
Read: There is more to oil's plunge than record-high supplies
(http://www.marketwatch.com/story/theres-more-to-oils-thursday-plunge-than-record-high-supplies-2015-02-26)
However, oil futures weren't taking too much comfort from that
gain, as Baker Hughes will publish new drilling-activity data
later. Analysts said that could weigh on WTI further, if it shows
the decline in the U.S. oil-rig count hasn't picked up the
pace.
The dollar held on to gains after the U.S. Dollar Index (DXY)
hit levels not seen since 2003 on Thursday. European stocks were
slightly higher, while property shares dragged Hong Kong stocks
lower.
Stocks to watch: Shares of Apple Inc.(AAPL) were lower after
Ericsson AB said it would sue the tech giant for infringing on 41
patents
(http://www.marketwatch.com/story/ericsson-sues-apple-for-infringing-41-patents-2015-02-27)
it says are crucial to the functionality of Apple's devices.
Apple said Thursday that it will hold an event on March 9, and
the company hinted that it will be related to the launch of its
Apple Watch, as the invitation said "Spring Forward," The Wall
Street Journal reported
(http://blogs.wsj.com/digits/2015/02/26/apple-plans-special-event-on-march-9-likely-for-smartwatch/).
(http://blogs.wsj.com/digits/2015/02/26/apple-plans-special-event-on-march-9-likely-for-smartwatch/)
(http://blogs.wsj.com/digits/2015/02/26/apple-plans-special-event-on-march-9-likely-for-smartwatch/)J.C.
Penney Co. Inc.(JCP) slid 8.8% after the retailer posted a surprise
fourth-quarter loss
(http://www.marketwatch.com/story/jc-penney-shares-tumble-after-company-posts-quarterly-loss-2015-02-26).
Gap Inc.(GPS) shares rose 3.8% after the retailer announced
buybacks and a dividend increase late Thursday
(http://www.marketwatch.com/story/gap-shares-rise-after-fourth-quarter-profit-beats-estimates-2015-02-26).
(http://www.marketwatch.com/story/gap-shares-rise-after-fourth-quarter-profit-beats-estimates-2015-02-26)
(http://www.marketwatch.com/story/gap-shares-rise-after-fourth-quarter-profit-beats-estimates-2015-02-26)Later
Friday, Berkshire Hathaway Inc.(BRKA) (BRK/A) will release
results.
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