By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market edged higher on
Friday after a wobbly start as economic data pointed to a slowdown
in the economy with unusually cold weather playing a part.
The main stock indexes are on track to record their second
straight week of gains.
The S&P 500 index (SPX) was 5 points, or 0.1%, lower at
1,827.22 and on track to record a gain for the week. The Dow Jones
Industrial Average (DJI) fluctuated at the beginning but gained 62
points, or 0.4% to 16,090.02, also on track for a weekly gain.
Two-thirds of the blue-chip index's components traded higher. The
Nasdaq Composite (RIXF) was 4 points, or 0.1% lower at 4,235.59,
snapping its six-day winning streak. Follow our stock market live
blog.
Economic data on Friday was mixed. Earlier, a surprise drop in
industrial production in January, with the cold weather knocking
manufacturing and mining output, dampened the mood.
However, consumer sentiment was unchanged in February, with a
preliminary reading slightly above consensus expectations,
according to reports on a gauge from the University of Michigan and
Thomson Reuters.
"The big question surrounding U.S. equity markets at the moment
is the true strength of the domestic economy," wrote Nicholas
Colas, chief market strategist at ConvergEx Group, a global
brokerage company based in New York.
"The half-empty-glass crowd feels the answer is somewhere around
1.5% GDP growth. Half-full adherents say it is closer to 3%.
Something called 'Winter' seems to be getting in the way of a clear
read at the moment, even if seasonal vagaries are as much a part of
February as last minute calls to the florist," Colas said.
In the corporate space, Cliffs Natural Resources (CLF) shares
advanced 6.4% after the firm said late Thursday it appointed a new
CEO and beat earnings estimates. Cliffs Natural announced that Gary
Halverson will lead the firm a day after activist investor
Casablanca Capital LP put forward a different candidate.
Trulia (TRLA) tumbled 17% after the online real-estate listing
site reported Thursday its fourth-quarter loss widened, while
adjusted earnings per share missed analysts forecasts. Shares of
Zillow Inc. (ZILLOW.XX), another online real-estate listing
service, fell 7%.
Weight Watchers International Inc. (WTW) slumped 26%. The
company on Thursday reported fourth-quarter earnings of 54 cents a
share and forecast 2014 earnings of $1.30 a share to $1.60 a share,
sharply lower than analysts' estimate of $2.72 a share.
Agilent Technologies Inc. (A) was down 7% after reporting its
earnings late Thursday. The diversified testing-equipment company
said its first-quarter earnings rose, but the company's profit
forecast was short of analyst expectations.
VF Corp. (VFC) slid 5.7% after its earnings results came in
below expectations.
Campbell Soup Co. (CPB) shares rallied 4% after the company's
quarterly earnings that topped expectations.
Shares of Jos. A. Bank Clothiers Inc. (JOSB) fell 2% after the
upscale men's retailer said it agreed to buy Eddie Bauer for $825
million in cash and stock.
In other financial markets, European stocks traded in positive
territory after economic-growth data for the euro zone showed a
pickup in pace. Gross domestic product for the currency union
advanced 0.3% quarter-on-quarter in the final three months of last
year, with Italy ending its two-year recession.
Asia markets closed mostly higher. The dollar dropped against
most major currencies, while most metals prices rose and oil prices
fell.
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