Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Wall Street advances as data outweighs budget cuts

03/01/2013 | 05:28pm US/Eastern

Stocks advanced modestly on Friday, leaving the S&P 500 with slight gains in a volatile week as strong economic data overshadowed growth concerns in China and Europe and let investors discount the impact of expected government spending cuts.

Stocks opened sharply lower for the session as Asian factories slowed and European output fell, but most of the losses evaporated after a report showed manufacturing activity expanded last month at its fastest clip in 20 months.

Consumer sentiment also rose in February as Americans turned more optimistic about the job market.

With $85 billion in government budget cuts set to begin, President Barack Obama blamed Republicans for failure to reach a compromise to avert the cuts, known as sequester. But the stock market appeared to have already priced in the failure by legislators to reach an agreement.

"We were able to dig out of that hole, but not make any great strides on it either," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois. "We will probably be in a holding pattern pending some big development on a broader budget deal."

The Dow Jones industrial average <.DJI> gained 35.17 points, or 0.25 percent, to 14,089.66 at the close. The Standard & Poor's 500 Index <.SPX> added 3.52 points, or 0.23 percent, to 1,518.20. The Nasdaq Composite Index <.IXIC> advanced 9.55 points, or 0.30 percent, to 3,169.74.

For the week, the Dow rose 0.6 percent, the S&P 500 edged up 0.2 percent and the Nasdaq gained 0.3 percent.

The slight gains for equities came during a volatile week that saw markets decline on Monday after uncertain Italian elections, only to rebound in the next two sessions as Federal Reserve Chairman Ben Bernanke defended the central bank's stimulus measures.

The low interest rates due to the Federal Reserve's accommodative monetary policy have helped equities continue to attract investors. The Dow is less than 1 percent away from its all-time intraday high of 14,198.10. Declines have been shallow and short-lived, with investors jumping in to buy on dips.

Intuitive Surgical (>> Intuitive Surgical, Inc.) jumped 8.5 percent to $553.40 after Cantor Fitzgerald analyst Jeremy Feffer upgraded the stock, saying the stock's slide of more than 11 percent on Thursday was a gross overreaction to a news report.

Groupon Inc (>> Groupon Inc) surged 12.6 percent to $5.10 a day after the online coupon company fired its chief executive officer in the wake of weak quarterly results.

Gap Inc (>> The Gap Inc.) rose 2.9 percent to $33.87 after the clothing retailer reported fourth-quarter earnings that beat expectations and boosting its dividend by 20 percent, while Salesforce.com Inc (>> salesforce.com, inc.) posted sales that beat forecasts, driving its stock up 7.6 percent to $182.

Chesapeake Energy Corp (>> Chesapeake Energy Corporation) fell 2.4 percent to $19.67 after the U.S. Securities and Exchange Commission escalated its investigation into the company and its Chief Executive Aubrey McClendon for a controversial perk that granted him a share in each of the natural gas producer's wells.

Volume was modest with about 6.72 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, slightly above the daily average of 6.5 billion.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of about 17 to 13, while on the Nasdaq, seven stocks rose for about every five stocks that fell.

(Editing by Jan Paschal)

By Chuck Mikolajczak

Latest news
Date Title
<1m ago LUCKY CEMENT : posts Rs2.66b profit
<1m ago BoK profit grows 7pc to Rs1.23b
<1m ago DIAGEO : Total Voting Rights
<1m ago RESEARCH AND MARKETS : Headaches: Current Treatments, Unmet Needs, and Patient Recruitment
<1m ago TEN AIRBUSES, 5 ATR TO BE INDUCTED IN PIA : Shujaat Azeem
<1m ago FINMECCANICA : Senate body praises people of FATA for sacrifices in war on terrorism
<1m ago OIL & GAS DEVELOPMENT : Senate Opposition stages token sit-in outside Parliament House
<1m ago REGAL PETROLEUM : Appoints Non-Exec Director Glazunov As Finance Director
<1m ago PAKISTAN NATIONAL SHIPPING : PNSC freight earnings increase by 28 per cent, okays deal for oil tanker purchase
<1m ago FINMECCANICA : FATA Secretariat initiates action against absent employees
Latest news
Advertisement
Hot News 
BANCO ESPIRITO SANTO : Angola brings oil firm Sonangol into local BES bank
1SPATIAL : Interim Results for the six month period ended 31 July 2014
AEGERION PHARMACEUTICALS : tops 3Q profit forecasts
AVIV REIT : Omega Healthcare Investors and Aviv REIT to Merge Creating Premier $10Bn Skilled Nursing Facility REIT
ULS TECHNOLOGY : Plunges As Improved Results Still Won't Meet Forecasts
Most Read News
1d ago CHINA MENGNIU DAIRY : Mengniu and Danone Strengthen Strategic Alliance as Danone Subscribes to a Private Placement by Yashili
1d ago ENERGEN : tops Street 3Q forecasts
4h ago BNP shakes off impact of U.S. fine, returns to profit
1d ago FLUOR NEW : ICA Fluor Awarded Fabrication Contract for Shell’s Heavy Oil Extraction Project in Canada
1d ago Hiring business drives LinkedIn's revenue beat
Most recommended articles
3m agoDJU.S. Wages Show Fresh Sign of Breakout--Update
3m agoDJFED'S KOCHERLAKOTA : FOMC Dissent Driven by Persistent Inflation Weakness
5m agoDJMARKET SNAPSHOT : U.S. Stocks: S&P 500, Dow Hit Record Levels
12m ago C$ sheds nearly a cent on soft Canadian GDP
12m ago Bank of England sets out new leverage rules for banks
Dynamic quotes  
ON
| OFF