By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market pared gains on
Friday, with the S&P 500 retreating from a fresh intraday
record it set in early trade. The main indexes are still on track
to record a second straight week of solid gains.
This week, a batch of upbeat economic reports this week,
suggesting an acceleration in growth, outweighed fears over rate
hikes and geopolitical risks, giving bulls more reason to bid up
prices.
The S&P 500 (SPX) gave up gains and was nearly flat at
1,872.02. The benchmark index hit a new intraday high of 1,884.00
in early trade.
The Dow Jones Industrial Average (DJI) added 39.41 points, or
0.2%, to 16,370.36.
The Nasdaq Composite (RIXF) was lagging behind other indexes,
trading 26.32 points, or 0.6%, lower at 4,292.82. Biotech stocks
were leading the losses on the index.
With no economic data scheduled for today, all attention is
likely to be turned on speeches from several Federal Reserve
officials and earnings results. Stocks had fallen Wednesday after
Federal Reserve Chairwoman Janet Yellen suggested the central bank
could begin raising interest rates about six months after it ends
its bond-buying program.
Minneapolis Fed President Narayana Kocherlakota, the sole
dissenter on the FOMC, released a statement in which he criticized
the Fed's new guidance, saying it "weakens the credibility of
FOMC's commitment to target 2% inflation" and "fosters policy
uncertainty and thereby suppresses economic activity."
"This market seems to be driven by investor sentiment, which is
very bullish at the moment," said Channing Smith, managing director
at Capital Advisors.
"After the recent economic data, investors again adjusted their
expectations higher, while geo-political risks dissipated. There is
a lot of excitement around IPOs with lofty valuations, boosting
investor confidence. However, we are at beginning stages of markets
getting frothy," he added.
A number of Fed speakers on Friday had very little impact on
markets. The Brookings Institution held a discussion panel
featuring former Fed Chairman Ben Bernanke, followed by St. Louis
Fed President James Bullard.
Fed Gov. Jeremy Stein is scheduled to speak on 'incorporating
financial stability considerations into a monetary policy
framework' at 7:20 p.m. Eastern.
Among individual stocks, Unwired Planet (UPIP), an intellectual
property company dealing in the mobile industry, soared 55% after
news that Chinese computer-maker Lenovo Group Ltd. was buying 21 of
its patent families for $100 million.
CommScope Holding Co. Inc. (COMM) jumped 9.3% after the
telecommunications-gear maker raised its guidance for the current
quarter in its earnings report. The company said it expects to earn
between 43 cents and 47 cents per share on revenue of $900 million
to $925 million.
Shares of Nike Inc. (NKE) were down 4% after the company late
Thursday reported fiscal third-quarter adjusted profit above
analysts' forecasts. Sales increased 13%, but the sneaker giant
warned that a stronger dollar will remain a drag on earnings.
Symantec Corp. (SYMC) slid 13% after the security-software maker
fired Chief Executive Steve Bennett late Thursday and replaced him
with board member Michael Brown.
Darden Restaurants Inc. (DRI) rose 2.2% even as the firm said
profit and sales fell compared with a year earlier. Darden is
spinning off its Red Lobster chain.
In other financial markets, the dollar pulled back after rising
on Thursday on the back of Yellen's dollar-supportive interest-rate
comments. The weaker greenback provided support for oil and metals,
which moved broadly higher. Asian markets closed mostly in black,
and European markets followed them higher early on Friday.
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