By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch)--The U.S. stock market closed higher on
Friday after the main benchmarks picked up steam in late afternoon,
trimming weekly losses.
The S&P 500 (SPX) closed up 2.89 points, or 0.2% at 1,967.57
and finished the week 0.9% lower. The Dow Jones Industrial Average
(DJI) gained 28.74 points, or 0.2% to 16,943.81, bur recorded a
0.7% weekly loss.
The Nasdaq Composite (RIXF) added 19.29 points, or 0.4%, higher
at 4,415.49 but was 1.6% lower over the week.
Read the recap of MarketWatch's live blog of Friday's
stock-market action.
Kim Caughey Forrest, senior equity analyst at Fort Pitt Capital,
explained the reason behind shallow pullbacks: "There are lots of
investors with cash who missed out on spectacular gains in 2013, so
every time they see a dip, they are buying it. I suspect that often
it is a retail investor, because institutional investors are more
disciplined."
Banking heavyweight Wells Fargo & Co. (WFC) kicked off the
reporting season for the financial sector with headline earnings
that were in line with expectations. The stock closed 0.7% lower as
analysts delved into the details.
Amazon's (AMZN) stock climbed 5.6%. The company unveiled new
products for its successful Amazon Web Services business, including
new systems for collaboration and mobile.
Tobacco giant Reynolds American Inc. (RAI) confirmed it is in
talks with Lorillard Inc. (LO) about a possible acquisition.
Lorillard shares rose 4.6%.
Mortgage insurers, including Genworth Financial Inc.(GNW), fell
in response to new proposed capital requirements by the Federal
Housing Finance Agency. Genworth slid 2.6%.
Fastenal Co.(FAST), which makes fasteners, tools and other
industrial and construction supplies, fell 4.2% in the wake of
second-quarter earnings.
Fed speakers
There were two opposing views from Fed speakers on Friday.
Charles Plosser, president of the Philadelphia Fed, said the
central bank "should consider hiking rates in response to the
improving outlook. We should not be keeping rates at zero until we
meet all our objectives."
In contrast, Dennis Lockhart, the president of the Atlanta Fed,
said the central bank should hold short-term interest rates close
to zero for another year.
European stocks bounce, oil drops
In overseas markets, European stocks bounced back Friday after
Thursday's drop, which came as Portuguese conglomerate Espírito
Santo International SA this week missed a payment on some
short-term debt. That sent shares of its subsidiaries, Banco
Espirito Santo AS and Espirito Santo Financial Group SA, spiraling
lower.
Overnight in Asia, Japan's Nikkei Average fell 0.3% and Hong
Kong's Hang Seng Index ended flat.
Among commodities, oil futures(CLQ4) dropped below $101 a barrel
on Friday to mark a fourth weekly loss and their lowest close in
two months. Gold futures(GCQ4) settled lower on Friday, but still
scored their sixth straight weekly gain as traders gauged the risks
posed by a troubled Portuguese bank.
More must-reads from MarketWatch:
2,000 days of Obama's presdency: How have stocks done?
Best trade for the rest of the summer
Percent of uninsured in U.S. drops steeply to record low, survey
says
Subscribe to WSJ: http://online.wsj.com?mod=djnwires