By Anora Mahmudova and Sara Sjolin, MarketWatch
Manufacturing activity flat in April; consumer confidence ticks
up
U.S. stocks ended the week on a high note, with the main indexes
advancing more than 1% on Friday. But the main benchmarks still
posted modest losses over the week.
The S&P 500 (SPX) closed 22.78 points, or 1.1%, higher at
2,108.29, but finished the week 0.4% lower. The Dow Jones
Industrial Average (DJI) jumped 183.54 points, or 1%, to 18,024.06,
but posted a 0.3% loss over the week.
The Nasdaq Composite (RIXF) gained 63.97 points, or 1.3%, to
5,005.39, but ended the week with a 1.7% loss, mostly due to a
large selloff in biotechnology industry.
On Friday, investors digested a raft of economic reports,
earnings and monthly car-sales figures, but the rally was mostly
attributed to stocks being oversold during the week.
Thursday's rout in particular was driven by losses in technology
and biotech stocks. While 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.
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 estimated 5.4% to a
seasonally adjusted annual rate of 16.5 million, according to
preliminary figures from Automotive News.
Earnings:Chevron (CVX) posted smaller-than-expected drops in its
quarterly profit and revenue. Shares fell 1.8%.
CVS Health(CVS) reported adjusted earnings above FactSet
estimates. Shares rose 1.2%.
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 19%,
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).
For more on today's notable movers read the Movers & Shakers
column
(http://www.marketwatch.com/story/chevron-cvs-moodys-berkshire-hathaway-earnings-in-focus-2015-05-01).
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.
Oil futures () fell 0.8% to settle at $59.15 a barrel, and
gained 3.5% over the week. Oil prices jumped 25% in April. Gold
futures
(http://www.marketwatch.com/story/gold-extends-drop-on-more-upbeat-economic-outlook-2015-05-01)fell
0.7% to settle at $1,174.50 and were nearly unchanged over the past
week.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires