By Saumya Vaishampayan And Corrie Driebusch
U.S. stocks traded little changed Friday after data showed the
economy returned to moderate growth in the fourth quarter.
The Dow Jones Industrial Average slipped 13 points, or 0.1%, to
18200.33. The S&P 500 rose a fraction to 2111 and the Nasdaq
Composite declined 1.1 points to 4986.
On Thursday, the Nasdaq advanced 0.4% to 4987.89, ending just
1.2% below its record close of 5048.62 set in March 2000. Other
benchmark indexes slipped, with the Dow falling 0.1% to 18214.42.
The S&P fell 0.1% to 2110.74.
The Commerce Department said Friday that U.S. gross domestic
product expanded at a 2.2% annual rate in the fourth quarter, down
from an initial estimate of 2.6%. Economists surveyed by The Wall
Street Journal had expected an advance of just 2%.
The report showed that the economy's recent fast pace of
economic growth was unsustainable. The economy expanded at a 5%
pace in the third quarter.
Even with the muted movement in stocks on Friday, both the Dow
industrials and the S&P 500 are on track for their biggest
monthly percentage gains since October 2011. The rise marks a
rebound from a volatile January that closed with sharp declines.
The Dow has increased 6.1% and the S&P 500 has advanced 5.8% in
February, through Thursday's close. The Nasdaq has risen 7.6% in
the same period, rapidly approaching its record for the first time
in nearly 15 years. All three indexes were down in January.
Investors say a stabilization in oil prices, strong earnings
from some technology and retail companies, as well as diminished
international risks, namely concerns about a Greek exit from the
eurozone, have helped stocks rally in February.
And the types of stocks that are leading indexes higher show
that investors are confident about further stock-market gains, said
Peter Kenny, chief market strategist at Clearpool Group.
S&P 500 consumer discretionary and technology stocks are on
track to notch the biggest gains for the month. Meanwhile,
utilities stocks, known as bond proxies because they pay out big
dividends, have tumbled the most this month. The gains in tech
stocks, demonstrated by the tech-heavy Nasdaq's performance this
month, show "investor appetite for growth-oriented equity
investments," said Mr. Kenny. "That's a big deal...and speaks to
investor confidence," he added.
In Europe, Germany's DAX was roughly flat and France's CAC 40
rose 0.3%.
In other markets, gold futures were nearly flat at $1208.60 an
ounce. Crude-oil futures added 2.2% to $49.22 a barrel.
Action was muted in the Treasury market. The yield on the
10-year note slipped to 2.014% from 2.016% on Thursday. Yields rise
as prices fall.
In corporate news, J.C. Penney Co.'s stock tumbled 10% after the
retailer reported a surprise loss for the fourth quarter.
Weight Watchers International Inc. swung to a loss in the fourth
quarter as the company continued to lose members. The weight-loss
company's shares fell 21%.
Ross Stores Inc. shares rose 6% after the retailer reported
sales and earnings well above its expectations.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com and
Corrie Driebusch at corrie.driebusch@wsj.com
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