S&P 500 Sees 4th Straight Weekly Gain 02/22 16:02
Technology and health care companies led U.S. stocks higher Friday, erasing
some of the market's losses from a day earlier and giving the benchmark S&P 500
its fourth straight weekly gain.
(AP) -- Technology and health care companies led U.S. stocks higher Friday,
erasing some of the market's losses from a day earlier and giving the benchmark
S&P 500 its fourth straight weekly gain.
The broad rally came as investors grew hopeful that the latest round of
talks between the U.S. and China will lead to a resolution of the costly trade
war that's unsettled markets and threatened the global economy.
High-level discussions between the Trump administration and Chinese
negotiators were slated to continue through the weekend. President Donald Trump
told reporters Friday afternoon that it was "more likely" that the talks will
result in a deal.
Uncertainty over trade has contributed to a dimmer outlook for corporate
earnings growth this year and added to concerns about the global economy, which
is showing some signs of slowing.
"Investors are clearly optimistic that a compromise on trade talks will be
coming sooner rather than later and those expectations appear to be reflected
in the market rebound we see today," said Saira Malik, head of global equities
The S&P 500 index rose 17.79 points, or 0.6 percent, to 2,792.67. The Dow
Jones Industrial Average gained 181.18 points, or 0.7 percent, to 26,031.81.
The Nasdaq composite climbed 67.84 points, or 0.9 percent, to 7,527.54. The
Russell 2000 index of smaller companies picked up 14.51 points, or 0.9 percent,
Major European indexes finished higher.
The world's two biggest economies are locked in a trade conflict spurred by
U.S. contentions that China uses predatory tactics to overtake U.S.
technological dominance, including pressuring American companies to hand over
trade secrets and in some cases stealing them outright.
The Trump administration has warned it will increase its import taxes on
$200 billion in Chinese goods from 10 percent to 25 percent if the two sides
haven't reached a resolution by March 2. But the White House has signaled a
willingness to extend the deadline if negotiators are making progress.
President Donald Trump, fielding questions from reporters in the Oval Office
late Friday afternoon, reiterated that he would "certainly consider" delaying
that deadline if talks are going well. The negotiations were slated to continue
through the weekend.
Asked about the prospects for a deal, Trump said: "It's probably more likely
that a deal does happen."
Wall Street has been encouraged by the signals that Chinese and U.S.
officials have sent since trade talks resumed early last week. That helped lift
the market, along with better-than-expected company earnings for the fourth
quarter of 2018 and the Federal Reserve's decision to take a pause on interest
"But the bigger picture is that with the market having such a nice rally
year-to-date, we actually think we're in for a period of consolidation," Malik
said. "Until you can see sustainable global economic growth, we think it's
going to be tough for the market to really move a lot higher from here."
Traders also weighed a mix of company earnings reports Friday.
Wayfair jumped 27.9 percent after the online home furnishings retailer
reported quarterly results that topped Wall Street's forecasts.
Universal Display climbed 23 percent after the LED technology company posted
better-than-expected quarterly earnings and its guidance surpassed investor
Zillow Group climbed 24.7 percent a day after the online real estate
information company issued quarterly earnings that topped analysts'
expectations. The company also said co-founder Rich Barton has been named chief
executive. Barton previously held the job from 2005 until 2010.
Kraft Heinz plunged 27.5 percent after the packaged foods company posted a
stunning $12.6 billion fourth-quarter loss as it slashed the value of its Oscar
Mayer and Kraft brands by $15.4 billion. The company also disclosed it was
being investigated by federal securities regulators and cut its dividend.
Dropbox slid 8.4 percent after the online data storage company issued a
Stamps.com plunged 57.8 percent after the online shipping and postage
company ended its exclusive partnership with the U.S. Postal Service and gave a
Benchmark U.S. crude rose 0.5 percent to settle at $57.26 a barrel in New
York. Brent crude, used to price international oils, gained 0.1 percent to
close at $67.12 a barrel in London.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.65
percent from 2.67 percent late Thursday.
The dollar rose to 110.71 yen from 110.68 yen on Thursday. The euro
strengthened to $1.1337 from $1.1336.
Gold rose 0.4 percent to $1,332.80 an ounce. Silver gained 0.7 percent to
$15.91 an ounce. Copper climbed 1.9 percent to $2.95 a pound.
In other energy futures trading, wholesale gasoline fell 0.2 percent to
$1.61 a gallon. Heating oil declined 0.3 percent to $2.03 a gallon. Natural gas
gained 0.7 percent to $2.72 per 1,000 cubic feet.