By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks traded in and out of
negative territory on Friday after Philadelphia Federal Reserve
President Charles Plosser warned of rapid rate increases during his
speech at the American Economic Association meeting.
The Dow Jones Industrial Average (DJI) gave up some gains and
traded 24 points, or 0.1%, higher at 16,467.52, but was set to
record a slight loss for the week.
The S&P 500 (SPX) was little changed at 1,832. The benchmark
index headed for the first weekly loss in two weeks.
The tech-heavy Nasdaq Composite (RIXF) shed 14 points to
4,128.98 and headed for a modest weekly loss.
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.
"Trading volume is off at least 25% this morning and will likely
be lower all day due to the mammoth snowstorm and today being the
last day of a holiday week," said Channing Smith, managing director
at Capital Advisors. "Next week volumes will rise as market
participants will be back to work and investors will be
reallocating portfolios for 2014."
Investors focused on speeches from Federal Reserve officials,
who gathered at an American Economic Association in Philadelphia on
Friday. The Philadelphia Fed's Plosser 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.
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 future cause of inflation, while
proponents worry the withdrawal of monetary stimulus will hamper
the economic recovery.
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 were down 0.2% in early trade. 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 2.5% 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 30%. 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 4.1% after the firm said its
passenger unit revenue was up 10% in December.
Rite Aid Corp. (RAD) advanced 8.9% 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 3.3%.
Sprint Corp. (S) shares fell 4.6%. 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 2%. 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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