By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks ended a choppy trading
session mostly lower on Friday after Federal Reserve Chairman Ben
Bernanke defended the extraordinary measures undertaken by the
central bank to boost the economic recovery.
The S&P 500 (SPX) slipped less than a point to end at
1,831.37, leaving it down 0.5% for the week.
The Dow Jones Industrial Average (DJI) closed up 28.64 points,
or 0.2%, at 16,469.99, but finished the week marginally lower.
The tech-heavy Nasdaq Composite (RIXF) shed 11.16 points, or
0.3%, to 4,131.91 on Friday and lost 0.6% for the week.
Volumes on Wall Street were thin, with many traders still on
vacation. Also, a major storm in the Northeast hampered travel and
states of emergency were declared in New York and New Jersey.
"Next week volumes will rise as market participants will be back
to work and investors will be reallocating portfolios for 2014,"
said Channing Smith, managing director at Capital Advisors.
U.S. stocks perked up briefly in the afternoon after the Fed
Chairman Bernanke spoke at the American Economics Association
conference. He defended Fed policy, including its asset-buying
program.
Last month, the Fed said it would reduce its monthly asset
purchases by $10 billion to $75 billion, but stressed it was
committed to low interest rates until further declines in the
unemployment rate. Critics of the bond-buying program see the Fed's
$4 trillion balance sheet as a potential future cause of inflation,
while proponents worry the withdrawal of monetary stimulus will
hamper the economic recovery.
During the session, markets reacted negatively to comments by
Philadelphia Fed President Charles Plosser, who said the central
bank may have to be "aggressive" in raising interest rates. Plosser
is known for his hawkish views and becomes a voting Federal Open
Market Committee member this year.
Investors digested data on December car sales, which are often
seen as a barometer of consumer confidence. Ford Motor Co. (F), the
second-largest auto maker, reported a 2% gain in net sales in
December to 218,058 vehicles. Analysts expected a 5.9% gain. Ford
shares closed 0.5% higher, after earlier weakness.
Privately owned Chrysler Group LLC reported a 5.7% increase in
sales last month to 161,007 units, missing analysts'
expectations.
General Motors Co. (GM.XX) shares dropped 3.4% after the car
maker reported a decline in U.S. vehicle sales for December to
230,157 units, down 6.3% from a year ago, while analysts expected a
rise of 0.8%.
FireEye Inc. (FEYE) shares surged nearly 39%. The
computer-security firm on Thursday said it acquired Mandiant Corp.,
a company known for its report linking cyberattacks on U.S.
companies to the Chinese military that was published in early 2013,
in a deal worth about $1 billion.
Delta Air Lines Inc. (DAL) climbed 5.5% after the firm said its
passenger unit revenue was up 10% in December.
Rite Aid Corp. (RAD) advanced 8.5% after the drugstore chain
said same-store sales increased 2.9% in December over the same
period a year ago, due to growth in its pharmacy division.
Shares of Twitter Inc. (TWTR) rose 2.2%.
Sprint Corp. (S) shares fell 4.4%. They declined 3.3% on
Thursday after a downgrade from Cowen & Co. to a market perform
rating from outperform, even as the firm raised its price target on
Sprint to $8.25 from $7.50.
Owens Illinois Inc. (OI) fell 1.9%. Analysts at Bank of America
Merrill Lynch reportedly downgraded the glass company to neutral
from buy, according to the Analyst Ratings Network.
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