By Victor Reklaitis and Sara Sjolin, MarketWatch
Nasdaq nears record; Credit Suisse ups S&P 500 target
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 13 points, or 0.6%, to 2,102. For the
week, the benchmark is on pace for a gain of 2.4%, helped by
Federal Reserve Chairwoman Janet Yellen saying Wednesday that the
central bank will raise interest rates 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 141
points, or 0.8%, on Friday and 2% for the week, trading at 18,100.
The Nasdaq Composite (RIXF) advanced 0.6% on Friday and 3.1% for
the week, trading at 5,021. The tech-heavy index on Friday has
climbed as high as 5,034 -- a 15-year intraday record and just shy
of an all-time closing high of 5,048.62 that was achieved on March
10, 2000.
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
(http://www.marketwatch.com/story/oil-rallies-as-dollar-drops-april-contract-set-to-expire-2015-03-20)
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.
No top-tier economic reports are expected Friday, but the latest
comments from Fed speakers could get attention. Atlanta Fed
President Dennis Lockhart called for judicious oversight of shadow
banking
(http://www.marketwatch.com/story/feds-lockhart-calls-for-judicious-oversight-of-shadow-banking-2015-03-20),
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.
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.
KB Home(KBH) climbed after the home builder reported a 29% rise
in revenue, citing strong orders and selling prices
(http://www.marketwatch.com/story/kb-home-shares-jump-as-profit-sales-top-estimates-2015-03-20),
which helped KB top profit and sales estimates.
But Tiffany & Co.(TIF) slipped after the jeweler posted 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 (GCJ5)
rose.
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