Nike shares surge; session marks end of month, quarter and first half
U.S. stocks on Friday were trying to shake off selling pressure in the previous session as investors grappled with mixed economic data and attempted to close out a volatile week that could signal the reemergence of choppy trade on Wall Street.
Despite Friday's slight gains, all three main indexes were on track to record weekly losses, as a selloff in highflying technology shares earlier in the week weighed on the benchmarks.
The S&P 500 rose 7 points, or 0.3%, to 2,426, with nine of the 11 main sectors trading higher. Industrials and consumer discretionary stocks were leading the gains, each up about 0.7%.
The Dow Jones Industrial Average added 82 points, or 0.4%, to 21,368, buoyed in part by a jump in shares of Nike Inc., which was on track for its best one-day percentage climb since September 2014 and added about 30 points to the blue-chip Dow.
Meanwhile, the tech-heavy Nasdaq Composite Index was up 9 points, or 0.2%, to 6,153, but has been bouncing around, briefly going into negative territory, in early trade.
"When you get extended rallies, the kind we saw in technology shares, prices tend to come down a lot faster. Though, when markets drop 1%, it's hardly a selloff," said Joe Saluzzi, partner, co-head of equity trading at Themis Trading.
"It is still perplexing to see the stock market climb to highs when the bond market is signaling a slowdown. One of these markets is not right," Saluzzi said.
Read:Central banks set up investors for a long, hard road back to 'normal' (http://www.marketwatch.com/story/investors-face-a-long-hard-road-back-to-normal-2017-06-29)
And see:Here's why the stock market is spooked by central bankers (http://www.marketwatch.com/story/heres-why-the-stock-market-is-spooked-by-central-bankers-trump-agenda-delays-2017-06-29)
Wall Street's main benchmarks were still on track to post gains for the second quarter, which ends Friday. The session will also mark the close of the month of June and the first half of the year.
"We are cautiously optimistic on the outlook for U.S. equities, but S&P 500 earnings growth expectations already look high and are unlikely to be revised higher, unless there is progress with fiscal stimulus domestically (e.g., tax reform) or global growth continues to surprise on the upside," wrote Joyce Chang, global head of research at J.P. Morgan, in a midyear outlook.
Next week, equity trading will be shortened by the Independence Day holiday on Tuesday.
Crunching numbers: Through Friday, the Nasdaq was on course for a weekly loss of 1.6% and a monthly decline of 0.6%. But it was in line for a second-quarter rise of 4.3%, which would be a fourth straight quarter of gains. For the first half, the index is on track for a 14.5% gain.
The S&P 500 was looking at a weekly decline of 0.4%, but a June increase of 0.7%. It was on course for 2.8% gain for the second quarter and an advance of 8.5% for the first half.
The Dow industrials were on track for a flat weekly performance. But the index could log a June advance of 1.8% and a second quarter rise of 3.5%. For the first six months of 2017, it is looking at a move of 8.2% higher.
Both the S&P 500 and the Dow industrials are poised for a seventh consecutive quarterly rise.
Check out:it has been an ugly first half for commodities in 2017 (http://www.marketwatch.com/story/its-been-an-ugly-first-half-for-commodities-in-2017-2017-06-29)
And read:Dollar bulls have a lot to worry about in second half of 2017 (http://www.marketwatch.com/story/dollar-bulls-have-a-lot-to-worry-about-in-second-half-of-2017-2017-06-29)
Economic docket: In data, spending in May was barely higher, as Americans chose to save more money instead. Meanwhile, consumer inflation also slowed, conflicting with the Federal Reserve's assessment of transitory sluggishness in prices.
Consumer spending (http://www.marketwatch.com/story/consumer-spending-is-weak-in-may-but-so-is-inflation-2017-06-30)rose 0.1% last month after back-to-back 0.4% gains in April and March, matching expectations by economists polled by MarketWatch.
The PCE index, the Federal Reserve's preferred inflation gauge, fell 0.1% to mark the second decline in three months. Expectations for a 0.1% increase.
The Chicago business barometer, or Chicago PMI, for June came in at 65.7, above the consensus reading of 58.0. A reading of at least 50 indicates growth.
The University of Michigan's final June update on consumer sentiment for the month was at 95.1, compared with the Wall Street consensus estimate of 94.5.
Stocks in focus: Nike shares sprang up 8.1% after the sportswear giant late Thursday posted better-than-expected quarterly profit and sales (http://www.marketwatch.com/story/nike-jumps-7-premarket-after-earnings-beat-amazon-deal-2017-06-30). Nike also confirmed a deal to sell shoes through Amazon.com Inc (http://www.marketwatch.com/story/nike-confirms-deal-to-sell-shoes-through-amazon-2017-06-29). (AMZN).
Shares of homebuilders were attracting investors, pushing up prices sharply. D.R. Horton Inc(DHI) was up 2.1%, while PuleGroup Inc.(PHM) gained 1.8%.
Bank of America Corp.(BAC) was up marginally after Warren Buffett's Berkshire Hathaway Inc. (BRKA) said it would exercise warrants to buy 700 million shares (http://www.marketwatch.com/story/warren-buffetts-berkshire-hathaway-to-exercise-warrants-to-buy-700-mln-bank-of-america-shares-2017-06-30) of the bank's common stock when the lender's dividend increase goes into effect.
Other markets: The ICE Dollar Index , which measures the buck against a basket of six currencies, was up slightly at 95.704, while gold slipped 0.3%.
Asian stocks dropped sharply (http://www.marketwatch.com/story/nikkei-dives-under-20000-as-asian-markets-sharply-pull-back-2017-06-29) as the central bank-spurred bond selloff spread to the region (http://www.marketwatch.com/story/bond-selloff-spreads-to-asia-with-japanese-yields-at-multimonth-high-2017-06-30). European stocks latched onto gains (http://www.marketwatch.com/story/european-stocks-inch-higher-after-sharpest-selloff-in-9-months-2017-06-30) after their worst selloff in nine months on Thursday.
U.S. oil futures were up roughly 1%, above $45 a barrel.
(END) Dow Jones Newswires
June 30, 2017 12:34 ET (16:34 GMT)