By Anora Mahmudova and Sara Sjolin, MarketWatch
Manufacturing activity flat in April; consumer confidence ticks
up
U.S. stocks moved sharply higher on Friday, shaking off a rocky
bout of trading a day earlier as investors digested a raft of
economic reports, earnings and monthly car-sales figures.
Thursday's rout was driven by losses in technology and biotech
stocks. Even as shares were moving higher Friday, the main
benchmarks still look on track for modest weekly losses.
This week brought more uncertainty over the timing of the first
Federal Reserve rate hike and a weaker-than-expected reading on
U.S. gross domestic product in the first quarter.
Readings on manufacturing activity came in below expectations,
but the reaction to data was muted. However, consumer confidence
indicators ticked higher. Investors are also assessing monthly car
sales.
The S&P 500 (SPX) was up 21 points, or 1%, to 2,106, with
nine of its 10 main sectors trading higher. The Dow Jones
Industrial Average (DJI) jumped triple digits, adding 170 points,
or 1%, to 18,106.
The Nasdaq Composite (RIXF) gained 56 points, or 1.1%, to
4,998.
John Manley, chief equity strategist at Wells Fargo Advantage
Funds, said investors should not read too much into Friday's bounce
as it's likely due to stocks being oversold during the week.
"When the GDP number came in and the Federal Reserve issued a
statement after its meeting, it was not clear if investors were
worried that the rates are going up or because the economy is
slowing down," Manley said.
Friday's data: The second and final reading of U.S.
manufacturing conditions in April was cut to 54.1 from a
preliminary 54.2, data provider Markit said Friday.
U.S. manufacturers grew slightly in April as new orders rose,
but they also scaled back employment to the lowest level since fall
2009, according to Institute for Supply Management.
Meanwhile, consumer sentiment rose to a final April reading of
95.9, up from 93 in March and matching the preliminary
estimate.
Outlays for U.S. construction projects fell 0.6% in March to a
seasonally adjusted annual rate of $967 billion.
Separately, car sales in April rose 5.4% to a seasonally
adjusted annual rate of 16.5 million, according to preliminary
figures.
Earnings:Chevron (CVX) posted smaller-than-expected drops in its
quarterly profit and revenue. Shares fell 1.2%.
Also reporting on Friday, CVS Health(CVS) reported adjusted
earnings above FactSet estimates. Shares rose 0.8%.
After the closing bell, Warren Buffett's Berkshire Hathaway
Inc.(BRK/A) (BRKA) is slated to report, a day ahead of the
company's annual shareholder meeting in Omaha. Read: 50 best things
Warren Buffett told investors over past 50 years
(http://www.marketwatch.com/story/a-half-centurys-worth-of-wisdom-from-warren-buffett-2015-02-27)
Movers and shakers: Shares of LinkedIn Corp. (LNKD) slumped 20%,
after the professional networking company late Thursday issued a
profit forecast well below Wall Street estimates
(http://www.marketwatch.com/story/new-york-times-exxon-aig-linkedin-fireeye-earnings-in-focus-2015-04-30).
On a more upbeat note, shares of Tesla Motors Inc.(TSLA) gained
0.5% ahead of the bell after chief executive Elon Musk took the
stage in Los Angeles
(http://www.marketwatch.com/story/elon-musk-wants-to-power-your-home-your-business-the-world-2015-05-01)
on Thursday night to detail the company's move into the energy
storage business.
Other markets: Most markets were closed in Asia and Europe for
their Labor Day holiday. Among few open bourses in Asia, Japan's
Nikkei 225 index ended slightly higher, while in Europe, the U.K.'s
FTSE index was little changed
(http://www.marketwatch.com/storyno-meta-for-guid).
Most energy and metals futures declined, while the dollar (DXY)
inched higher.
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