By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks stepped lower Friday and
finished mostly down for the week, as the S&P 500 snapped a
two-week winning streak that's left it just below a record
level.
Stocks spent most of the session in modestly positive territory,
but those gains faded by day's end.
The S&P 500 (SPX) dipped 3.53 points, or 0.2%, to close at
1,836.25, as telecoms fared worst and consumer discretionary
performed best. The benchmark index lost 0.1% for the week, putting
it 0.7% below its Jan. 15 record close of 1,848.38.
The Dow Jones Industrial Average (DJI) shed 29.93 points, or
0.2%, to finish at 16,103.30. Nike Inc. (NKE) and Walt Disney Co.
(DIS) both gained 1.2% to lead the Dow, while Verizon
Communications Inc. (VZ) fell 1.8% for the worst performance among
blue chips. The Dow dipped 0.3% for the week, also halting a
two-week winning streak.
The Nasdaq Composite (RIXF) edged down 4.13 points, or 0.1%, to
close at 4,263.41. But the tech-laden index still finished up 0.5%
for the week -- its third straight weekly gain.
Stocks have been bouncing back from a slump in late January and
early February, as investors lately look past a number of
disappointing economic reports, attributing them to the
particularly bad winter weather that's hit much of the U.S. On
Friday, existing-home sales in January showed a
bigger-than-expected decline, but unusually poor weather may have
played a role, the National Association of Realtors said.
But there is a challenge presented by how stock investors have
reacted to weak data, according to Steven Wieting, global chief
investment strategist for Citi Private Bank.
Markets "that have looked over the valley to a stronger period
of U.S. growth ahead, may not have to 'tilt up' when that recovery
from weather-related weakness becomes apparent," Wieting said in a
client note on Friday.
Nonetheless, Citi Private Bank still predicts moderate gains for
U.S. stocks. Wieting said his bank's "expectation for a roughly 7%
gain in U.S. market earnings per share, low interest rates and
growing dividends leaves us expecting further U.S. market gains, if
more modest than 2013."
In other economic news on Friday, Dallas Federal Reserve
President Richard Fisher said the central bank should continue to
taper its bond-buying program that's boosted stocks.
"There wasn't that much news. Basically what we saw was typical
volatility on options expirations," said Peter Cardillo, chief
market economist at Rockwell Global Capital. were on the
calendar.
When the S&P 500 couldn't punch through to a new 52-week
high earlier Friday, that might have invited some selling, Cardillo
added. But overall, the holiday-shortened week "wasn't bad" and
Friday's market action wasn't a "game changer," he said.
See a recap: MarketWatch's live blog of Friday's stock-market
action
Among individual stocks, Groupon Inc. (GRPN) slid 22% after the
daily-deals company late Thursday delivered a disappointing
outlook.
Hewlett-Packard Co. (HPQ) fell 1.3%, as the PC and printers
maker cut short an early rally on its upbeat quarterly results.
Priceline.com Inc. (PCLN) climbed 2.5% after the online travel
broker late Thursday reported fourth-quarter results that exceeded
expectations.
In other financial markets on Friday, European stock markets
closed higher, following a mostly upbeat session in Asia. Metals
prices rose, while oil prices suffered. The dollar dipped against
major rivals.
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