By Wallace Witkowski and Anora Mahmudova, MarketWatch
Deere, Autodesk, Dynegy shares surge
U.S. stocks finished higher Friday for a second straight session
of gains, but closed in negative territory for the week, unable to
fully bounce back from sharp losses in the middle of the week
sparked by White House drama.
The S&P 500 index closed up 16.01 points, or 0.7%, at
2,381.73, with all of its 11 main sectors trading higher. The
industrials and energy sectors led the gains both rising more than
1%.
The Dow Jones Industrial Average finished up 141.82 points, or
0.7%, at 20,804.84. Caterpillar Inc. (CAT) and General Electric
Co.(GE) led gainers, both closing up more than 2%.
Both the Dow and the S&P turned in a second week of losses
as both shed 0.4% for the week.
The Nasdaq Composite Index gained 28.57 points, or 0.5%, to
close at 6,083.70, powered by more than 2% gains in U.S. shares of
Baidu Inc.(BIDU), Nvidia Corp.(NVDA), and Starbucks Corp.(SBUX) For
the week, the Nasdaq closed down 0.6%.
Markets were rattled earlier this week, with investors
succumbing to a drumbeat of negative news stories focused on
President Donald Trump and his inner circle's relationship with
Russia.
On Wednesday, the markets reacted to a report that Trump in
February asked then-Federal Bureau of Investigation Director James
Comey to stop an investigation into Russian interference into the
U.S. presidential election, causing some investors to question
whether Trump will finish his term. pushing stocks lower and
spurring a spike in Wall Street's most popular gauge of fear
(http://www.marketwatch.com/story/wall-streets-fear-gauge-threatens-largest-daily-pop-in-8-months-2017-05-17).
However, the equity market has displayed an uncanny level of
resilience over the past few days, with markets beginning a modest,
but steady, rebound on Thursday after Deputy Attorney General Rod
Rosenstein appointed former FBI Director Robert Mueller as special
counsel
(http://www.marketwatch.com/story/robert-mueller-ex-fbi-director-named-special-counsel-for-russia-probe-2017-05-17)
to oversee the bureau's investigation.
On Friday, stocks flirted with recapturing much of their losses
but retreated from their best levels, following a report from the
New York Times that Trump referred to Comey as a "nutjob" to
Russian officials, and a Washington Post article that indicated
that a current White House official was a person of interest in the
Russia probe
(http://www.marketwatch.com/story/white-house-official-probed-over-russia-and-president-called-comey-nut-job-reports-say-2017-05-19).
Read:Why the White House should worry: Special counsels usually
result in criminal charges
(http://www.marketwatch.com/story/why-the-white-house-should-worry-special-counsels-usually-result-in-criminal-charges-2017-05-18)
"Clearly, appointing Mueller was brilliant," said Diane Jaffee,
senior portfolio manager at TCW. "Regardless of who is in office
you want the rule of law. You want that the government will prevail
in maintaining checks and balances."
Jaffee said investors have been focusing on the fundamental
strength of first-quarter earnings and reports of the economy,
which have offered signs of steady, if not robust, growth.
Read: Fed minutes may quell fresh doubts about a June rate
increase
(http://www.marketwatch.com/story/fed-minutes-may-quell-fresh-doubts-about-a-june-rate-hike-2017-05-19)
Still, investors have increasingly questioned whether President
Trump can deliver on his economic stimulus promises amid
investigations.
Opinion:Market sentiment during Watergate shows how stocks might
react to Trump
(http://www.marketwatch.com/story/market-sentiment-during-watergate-shows-how-stocks-might-react-to-trump-2017-05-19)
"This week political risk has caught up on the market but it's
still unclear whether it has any legs," wrote Deutsche Bank
strategist Jim Reid and research analyst Craig Nicol in a note to
clients Friday.
Observers said investors will be closely watching potential
developments on the controversy next week. Lawmakers have asked the
FBI to turn over the notes Comey said he made from his meetings
with Trump by next week, and a congressional hearing on the matter
is due to take place, at which the former FBI head has been asked
to testify.
Fed speakers: St. Louis Fed President James Bullard questioned
the need for a June rate increase
(http://www.marketwatch.com/story/feds-bullard-questions-need-for-june-rate-hike-2017-05-19),
citing a slowdown in the U.S. economy during the first half of the
year. Bullard isn't a voting member of the Fed policy committee
this year.
Moving stocks: Deere shares (DE) jumped 7.3% after earnings and
sales beat Wall Street forecasts
(http://www.marketwatch.com/story/deeres-stock-surges-after-big-profit-and-sales-beats-raised-outlook-2017-05-19).
Earnings from Campbell Soup Co.(CPB) were below expectations,
sending shares down 2%.
Shares of Autodesk Inc.(ADSK) rallied nearly 15% as the company
said its shift to a subscription-based software model was going
well.
Dynegy Inc. shares (DYN) soared nearly 26%, and finished at a
three-month high after reports that the power producer received a
buyout offer from Vistra Energy(VST).
Also in the retail sector, Ross Stores Inc. (ROST) rose 1.9%
after earnings and sales met forecasts
(http://www.marketwatch.com/story/ross-shares-higher-after-eps-beats-expectations-sales-meet-forecast-2017-05-18).
Shares of Foot Locker Inc.(FL) slid nearly 17% after
weaker-than-expected first-quarter results.
Shares of Under Armour Inc.(UAA) snapped a seven-session losing
streak, closing up 1.1%
McKesson Corp.(MCK) shares rallied 8.2% after the health-care
supply chain management company topped earnings expectation
(http://www.marketwatch.com/story/mckesson-shares-surge-after-earnings-outlook-top-street-view-2017-05-18)
late Thursday.
Read:Only two S&P 500 companies passed this
sales-and-earnings test
(http://www.marketwatch.com/story/only-two-sp-500-companies-passed-this-sales-and-earnings-test-2017-05-11)
Shares of Applied Materials Inc.(AMAT) rose 0.4% after the
microchip-materials maker's results and outlook topped Wall Street
estimates late Thursday
(http://www.marketwatch.com/story/applied-materials-shares-rise-on-earnings-beat-strong-outlook-2017-05-18).
Read:Bill Ackman has 'something to prove' after Valeant mistake
(http://www.marketwatch.com/story/bill-ackman-has-something-to-prove-after-valeant-mistake-2017-05-18)
(http://www.marketwatch.com/story/bill-ackman-has-something-to-prove-after-valeant-mistake-2017-05-18)Other
markets: European stocks end higher across the board
(http://www.marketwatch.com/story/european-stocks-start-digging-out-of-trump-inspired-rout-2017-05-19),
and the FTSE 100 index
(http://www.marketwatch.com/story/uk-stocks-break-2-day-losing-streak-after-pounds-mini-flash-crash-2017-05-19)snapped
a two-day losing streak. In Asia , stocks finished mostly in the
green.
The U.S. Dollar Index was flat, and the British pound recaptured
the $1.30 level
(http://www.marketwatch.com/story/the-pound-looks-set-for-significant-further-upside-now-that-its-regained-130-2017-05-18)
it lost late Thursday after a mini "flash crash" that sent it to as
low as $1.2888 within seconds.
Read:The pound looks set for 'significant further upside' now
that it's regained $1.30
(http://www.marketwatch.com/story/the-pound-looks-set-for-significant-further-upside-now-that-its-regained-130-2017-05-18)
Gold prices
(http://www.marketwatch.com/story/gold-futures-hit-pause-as-stocks-improve-but-weekly-advance-on-track-2017-05-19)
settled up less than 0.1% at $1,253.60 an ounce, while oil prices
added to gains, with West Texas Intermediate crude prices settling
above the $50-a-barrel mark for the first time in a month
(http://www.marketwatch.com/story/optimism-ahead-of-opec-meeting-drives-further-gains-for-oil-2017-05-19).
--Barbara Kollmeyer in Madrid contributed to this article.
(END) Dow Jones Newswires
May 19, 2017 16:55 ET (20:55 GMT)
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