By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch)--U.S. stocks retreated from record highs
on Friday, with falls in tech companies weighing on the Nasdaq
Composite.
Stocks were earlier supported by favorable outcomes in two 'risk
events' this week. The Federal Reserve reiterated its commitment to
facilitating the U.S. economic recovery by maintaining its view on
the timing of interest-rate hikes, and Scotland voted to remain
part of the United Kingdom.
The main benchmarks look set to record weekly gains. The S&P
500 (SPX) was flat at 2,0111.75, and the Dow Jones Industrial
Average (DJI) gained 32 points, or 0.2%, rising to 17,3298.52.
The Nasdaq Composite (RIXF) fell 20 points, or 0.4%, to
4,575.57. Internet stocks were particularly hit, with Yahoo falling
by most among Nasdaq 100 components.
Kate Warne, investment strategist at Edward Jones, said that,
despite new highs, the market is not running ahead of fundamentals
and warned of volatility on options expirations days.
BTIG lifted its S&P 500 forecast on Thursday, raising its
year-end price target to 2,075-2,100, from 1,980, becoming the
latest brokerage firm to do so.
Stocks to watch: Alibaba Group Holding Ltd. (BABA), which priced
Thursday at $68, opened at above $92 on Friday. Alibaba's market
capitalization is now at $222 billion, making it one of the largest
U.S.-listed companies, with a larger market capitalization than
Amazon. (AMZN)Alibaba IPO bulls are missing some red flags. Also
read: Live blog: World's biggest IPO: Alibaba
Yahoo Inc. (YHOO) shares fell 5.4%, suggesting a big windfall
from Alibaba's IPO was already priced in. Yahoo owns a large stake
in Alibaba. Opinion: China's favorite sons will score big in
Alibaba IPO
Oracle Corp. (ORCL) fell 4.6% on Thursday's news that Chief
Executive Officer Larry Ellison is stepping down in favor of Safra
Catz and Mark Hurd, who will serve as co-CEOs. Oracle's two CEOS
may fuel investor concerns
Shares of Concur Technologies Inc. (CNQR) surged 18% on news
Germany-based SAP AG (SAP) will buy the software group in a deal
valued at $8.3 billion. The Wall Street Journal said the deal was
the largest in SAP's history. U.S.-listed shares of SAP fell
4%.
Scotland rally: U.S. stock futures saw some benefit from news
that Scotland will stay a part of the U.K. The FTSE 100 index rose
0.7%. Spanish stocks pared earlier gains and were 0.7% higher as
strategists said the country's independence movement has lost
strength on the Scottish outcome.
The British pound(GBPUSD) pulled back to $1.6395 from a high of
$1.6526 seen when Scottish votes began to come in. The Nikkei 225
index closed at nearly a seven-year high as the dollar reached a
historical high against the yen.
Gold(GCZ4) was sliding toward a third weekly loss. Oil (CLV4)
was also on the decline.
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