By Anora Mahmudova and Sara Sjolin, MarketWatch
GE shares surge after restructuring and buyback news
NEW YORK (MarketWatch)--U.S. stocks pushed higher on Friday
while the main benchmarks were on track to book modest weekly
gains.
Stocks were boosted by General Electric's comprehensive
restructuring plan, which includes a sale of the bulk of its
financial business and a hefty stock repurchase plan.
The S&P 500 (SPX) added 7.25 points, or 0.3%, to trade
2098.43 with seven of its 10 main sectors trading higher. The
industrials sector rallied more than 1%, largely thanks to a 7%
surge in GE (GE) stock.
The Dow Jones Industrial Average (DJI) rose 57.85 points, or
0.3%, to 18,016.58
The Nasdaq Composite (RIXF) gained 9.83 points, or 0.2%, to
4,984.47
Rallies in Asia and Europe set the tone for U.S. markets, said
Chris Gaffney, president of EverBank World Markets.
"Markets have been trading in a tight range the whole week as
the focus shifted to earnings," Gaffney said.
"The drop in earnings is already priced in. While we expect
companies to beat already lowered expectations, forward guidance
will be more important," Gaffney said.
Gaffney cautioned that valuations are at the higher end of the
spectrum, which he said calls for diversification into
international markets.
U.S. stocks were on track to close out the week in positive
territory, even after a volatile week with a mixed message from the
Fed
(http://www.marketwatch.com/story/several-on-fed-favored-june-rate-increase-minutes-2015-04-08),
the unofficial kickoff
(http://www.marketwatch.com/story/investors-boo-alcoa-but-most-analysts-remain-cheerful-2015-04-09)
of the earnings season and M&A optimism
(http://www.marketwatch.com/story/whos-the-next-target-for-oil-ma-after-the-shell-bg-deal-2015-04-08)
pulling the market in different directions.
Lacker speech: Richmond Fed President Jeffrey Lacker, who is a
voting member of the Federal Open Market Committee this year, in a
speech reiterated his case for June hike.
"In current circumstances, raising the funds rate target a notch
or two is less like taking away the punch bowl and more like just
slowing down the refills. We will still be spiking the punch--just
not quite as rapidly as we have been," Lacker said.
The minutes from the Fed's March meeting--also held before the
disappointing jobs report--showed several central bank officials
thought June had was an appropriate
(http://www.marketwatch.com/story/several-on-fed-favored-june-rate-increase-minutes-2015-04-08)
time for a rate hike.
Minneapolis Fed President Narayana Kocherlakota--a non-voter
this year--is due to speak at the Minnesota Credit Union annual
meeting in Bloomington, Minn., at 12:20 p.m. Eastern.
The ICE dollar index (DXY) trimmed its rise after Fed speeches
but was still 0.1% higher
(http://www.marketwatch.com/storyno-meta-for-guid) to 99.29.
Stocks to watch: Shares of Apple Inc.(AAPL) were slightly lower
as the company kicked off its online preorder period
(http://www.marketwatch.com/story/how-to-buy-an-apple-watch-2015-04-09)
for the Apple Watch. Starting on April 24, the watch will also be
available at stores in big cities including Colette in Paris, Dover
Street Market in London, Tokyo, Maxfield in Los Angeles and The
Corner in Berlin.
Anctx 8% gain for General Electric Co.(GE) helped send the
benchmarks higher, after the conglomerate said it would sell the
bulk of GE Capital and launch a $50 billion stock buyback.
Shares of Citrix Systems Inc.(CTXS) fell more than 2% after the
software company late Thursday lowered its first-quarter profit and
sales outlook.
For more on today's notable movers read Movers & Shakers
column
(http://www.marketwatch.com/story/apple-likely-in-spotlight-as-watch-preorder-kicks-off-2015-04-09).
Other markets: European stocks continued their march higher
(http://www.marketwatch.com/storyno-meta-for-guid), with the Stoxx
Europe 600 and Germany's DAX 30 index on track for record closing
highs.
Japan's Nikkei 225 index briefly rose above 20,000, but closed
almost 100 points shy of the milestone
(http://www.marketwatch.com/storyno-meta-for-guid).
Gold prices (GCM5) rose, while crude oil (CLK5) also bounced
back and headed higher
(http://www.marketwatch.com/storyno-meta-for-guid).
Subscribe to WSJ: http://online.wsj.com?mod=djnwires