By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fell slightly in
range-bound trading on Friday and were set to finish the volatile
week, during which the S&P 500 and the Dow touched record
levels, with modest losses.
Investors welcomed a big jump in construction of new homes, but
sentiment turned sour shortly after when a gauge of consumer
sentiment for May showed an unexpected drop.
The S&P 500 (SPX) was 2 points, or 0.1%, lower at 1,869.37
and was on track to record a modest loss over the week.
The Dow Jones Industrial Average (DJI) was 20 points, or 0.1%,
lower at 16,426.85 and was set to record a loss over the past five
days.
The Nasdaq Composite (RIXF) slipped 6 points, or 0.2%, to
4,063.20 and looked set to record a weekly loss.
Follow MarketWatch's live blog of today's stock-market
action.
"Earlier this week, markets reached record levels on lack of bad
news. Wall Street is striking a balance being very comfortable
making those new highs and the need to work into new positions,"
Liz Miller, the president of Summit Place Financial Advisors.
"Recent choppiness doesn't reflect so much a change in sentiment
as much as a cautiousness," she added.
Construction on new U.S. homes surged in April to the fastest
pace in five months, with the volatile apartment category leading
that jump, according to government data released Friday. Results
topped economists' forecasts and signaled that home construction is
continuing to rebound from a tough winter.
The preliminary May reading of the University of Michigan and
Thomson Reuters's gauge of consumer sentiment fell unexpectedly to
81.8 from 84.1 in April. Economists expected to see a reading of
85.
10-year Treasury notes (10_YEAR), which rallied on Thursday amid
a flight to safety, fell slightly after the strong housing data,
but yields were still at 2.51%.
Retail stocks in focus
Reaction to late-session earnings on Thursday from J.C. Penney
Co. and other retailers kept retail in the spotlight.
Shares of J.C. Penney (JCP) shares soared 15% after the midprice
department store on Thursday posted a better-than-expected 6.2%
same-store sales gain. J.C. Penney CEO: 'We've turned an important
corner' Read: Sterne Agee analysts explain why they're not true
believers.
Nordstrom Inc. (JWN) shares jumped 13% as the retailer reported
results late Thursday above Wall Street's expectations.
Applied Materials Inc. (AMAT) said it swung to a second-quarter
profit from a loss a year earlier, lifting shares 5.6%.
Warren Buffett's Berkshire Hathaway Inc. (BRKA) (BRK/A) bought
shares of Verizon Communications Inc. (VZ) and added to its stake
in DaVita Healthcare Partners (DVA) according to 13f security
filings. Shares in Verizon were up 2.2%.
Shares in General Motors Co. (GM.XX) fell 1% on news Berkshire
Hathaway unloaded the stock. Read: GM loses favor with some big
investors; interest in Verizon, MGM grows.
European stocks off, oil inches higher
Europe's main stock index, the Stoxx Europe 600 closed
marginally higher. In Asia, India's S&P BSE Sensex finished at
an all-time high as election results indicated a new government
will be lead by the opposition Bharatiya Janata Party.
In other markets, crude oil (CLM4) rose 53 cents to $101.84 a
barrel, and gold (GCM4) eased $1.3 to $1,292.3 an ounce. The dollar
fell against the British pound Friday as investors struggled to get
a sense of when major central banks could begin to raise interest
rates. Read: Why a dollar rally is elusive.
More must-reads from MarketWatch:
Soros cuts his bearish bet on the S&P 500, adds Russell 2000
bear call
Acampora talks of 'sick feeling' and possible 25% slide for some
markets
7 reasons Amazon's stock is going nowhere in 2014
Subscribe to WSJ: http://online.wsj.com?mod=djnwires