By Victor Reklaitis and Sara Sjolin, MarketWatch
Credit Suisse slightly raises S&P 500 forecast
NEW YORK (MarketWatch) -- U.S. stocks stepped higher Friday,
rebounding from the prior session's losses and heading for strong
weekly gains.
The S&P 500 (SPX) rose 11 points, or 0.6%, to 2,101. For the
week, the benchmark is on pace for a gain of 2.4%, helped by the
Federal Reserve Chairwoman Janet Yellen's comments that the central
bank t will hike more slowly
(http://www.marketwatch.com/story/fed-takes-step-to-rate-hike-but-scales-back-intended-pace-2015-03-18)
than planned just a few months ago.
Meanwhile, the Dow Jones Industrial Average (DJI) was up 98
points, or 0.5%, on Friday and 1.7%% for the week, trading at
18,057. The Nasdaq Composite (RIXF) advanced 0.6% on Friday and
3.1%% for the week, trading at 5,024.
Economists at Credit Suisse said in a note Friday that the Fed's
statement was dovish, but that they still expect a rate hike in
June. They also lifted their year-end target for the S&P 500 by
20 points to 2,170, citing improving corporate credit and earnings
revisions stabilizing.
Katie Stockton, chief technical strategist at BTIG, said in a
note Friday that stocks "are resuming their uptrend today," and she
expects "a new all-time high in the near term" for the S&P 500.
Nearly half of the S&P is displaying positive short-term
momentum, she added.
On Thursday, a slide in oil prices hit energy stocks and helped
move the stock market lower
(http://www.marketwatch.com/story/us-stocks-futures-slip-after-fed-fueled-stock-rally-2015-03-19).
Crude prices (CLJ5) were up sharply on Friday.
Friday's key headlines: The latest U.S. drilling rig-count
numbers are expected
(http://www.marketwatch.com/story/oil-prices-stay-choppy-ahead-of-rig-count-data-2015-03-20)
at 1 p.m. Eastern Time, and that could move energy stocks and oil
prices.
In addition, stocks could see increased volatility and higher
trading volume Friday due to quadruple witching
(http://www.marketwatch.com/story/quadruple-witching-may-bring-added-volatility-volume-2014-06-20),
which means that equity options, stock-index futures, stock index
options, and single stock futures expire.
With no top-tier economic data due Friday, the latest comments
from Fed speakers will be watched. Atlanta Fed President Dennis
Lockhart will give a speech at 10:15 a.m. Eastern Time, while
Chicago Fed President Charles Evan is set to speak at 11:30 a.m.
Lockhart and Evans are both voting members of the Fed's
rate-setting board this year.
Individual movers:Biogen Idec Inc.(BIIB) was the biggest gainer
in the S&P 500, rising after reporting positive results for an
Alzheimer's treatment.
KB Home(KBH) reported a 29% rise, citing strong orders and home
sales prices
(http://www.marketwatch.com/story/kb-home-shares-jump-as-profit-sales-top-estimates-2015-03-20),
which helped the home maker beat profit and sales estimates.
Nike Inc.(NKE) and Darden Restaurants Inc.(DRI) also were
notable S&P gainers in the wake of quarterly earnings that beat
Wall Street's expectations.
But Tiffany & Co.(TIF) slipped after the jeweler reported a
small drop
(http://www.marketwatch.com/story/tiffanys-stock-drops-after-lackluster-sales-downbeat-outlook-2015-03-20)
in sales.
Read more about Friday's jumpiest stocks in Movers & Shakers
(http://www.marketwatch.com/storyno-meta-for-guid)
Other markets: European stock markets were mostly higher
(http://www.marketwatch.com/story/european-stocks-nudge-higher-with-greek-stocks-advancing-2015-03-20),
with the U.K.'s FTSE 100 index extending its push into record
territory (http://www.marketwatch.com/storyno-meta-for-guid).
Shares on the Athex Composite gained after Greece agreed to send a
list of overhauled reforms
(http://www.marketwatch.com/story/greece-will-toughen-up-reforms-stick-to-agreed-plan-merkel-2015-03-20)
to European officials within day.
In Asia, Japan's Nikkei 225 ended at an almost 15-year high
(http://www.marketwatch.com/storyno-meta-for-guid), aided by a
weaker yen. The ICE dollar index (DXY) fell, while gold rose.
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