MARKET SNAPSHOT: Stock Market Up As Financials Gain, Investors Turn Attention To Fed
U.K. election result brushed aside, for now
U.S. stocks rose on Friday, putting major indexes on track to eke out a positive week as investors shook off a surprising U.K. election result and began to focus on the meeting next week of Federal Reserve policy makers.
The Dow Jones Industrial Average rose 45 points, or 0.2%, to 21,226. The S&P 500 added 4 points to 2,438, a rise of 0.2%. The Nasdaq Composite Index ticked up by 0.1%, or 4 points, to 6,326. Both the S&P and the Nasdaq hit intraday records in early trading, while the Dow was mere points from its own.
For the week, the Dow is up 0.3% while the S&P 500 is up 0.2% and the Nasdaq is up 0.5%. If the three end in positive territory for the week, that would mark their third straight weekly advance.
The Russell 2000 index of small-cap shares is up 1.2% for the week, and is trading near records.
Friday's rise came despite the election result in the U.K, with results in for all but a handful of seats in the U.K. general election, the vote has ended in a "hung parliament," (http://www.marketwatch.com/story/uk-general-election-results-in-a-hung-parliament-2017-06-09) where no single party holds a majority. U.K. Prime Minister Theresa May said she has now reached an "understanding" with the small Northern Ireland Democratic Unionist Party, whose 10 seats will give her enough seats to govern.
May called the election as a way to strengthen her hand ahead of negotiations for the U.K. to exit from the European Union, and the lack of a clear winner in the ballot creates new questions for the process for Britons to exit from the European Union, dubbed Brexit, although analysts cautioned against viewing the vote as a gamechanger.
"Brexit was going to happen regardless of how this election went, and frankly we don't know how hard or soft it would have been had she done better in the vote," said Crit Thomas, global markets strategist at Touchstone Investments, which has about $15 billion in assets under management. "I've been telling clients to peel off some of their U.S. exposure and go overseas for growth, and this election doesn't change that."
Need to know: After U.K. election shocker, Brexit itself looks 'surely in trouble now' (http://www.marketwatch.com/story/after-uk-election-shocker-brexit-itself-looks-surely-in-trouble-now-2017-06-09)
Financial stocks were the biggest gainers on Friday, with the sector (XLF) up 1%. Goldman Sachs Group Inc.(GS) rose 1.8% while Morgan Stanley (MS) and Bank of America Corp.(BAC) both climbed 2.3%.
See:'Worst possible outcome'--analysts react to U.K. early election results (http://www.marketwatch.com/story/worst-possible-outcome-analysts-react-to-uk-early-election-results-2017-06-08)
Next up, Fed meeting: Traders see a 95.8% probability of a U.S. interest rate increase at the conclusion of the Federal Reserve's two-day policy meeting next week on June 14, CME Group's FedWatch showed (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html/).
The only top-tier economic data scheduled for release Friday is an update on wholesale inventories for April, due at 10 a.m. Eastern Time.
Stocks on the move: Shares of Endo International PLC(ENDP) slumped 16% after the Food and Drug Administration late Thursday said it asked the company to stop selling its opioid pain medication (http://www.marketwatch.com/story/fda-asks-endo-to-stop-selling-opioid-in-first-such-move-2017-06-08), reformulated Opana ER, citing concerns about abuse.
DuPont Fabros Technology Inc.(DFT) soared 13% after the developer and operator of multi-tenant data centers announced a deal to be purchased by (http://www.marketwatch.com/story/dupont-fabross-stock-soars-toward-record-after-digital-realty-buyout-deal-2017-06-09)Digital Realty Trust Inc (http://www.marketwatch.com/story/dupont-fabross-stock-soars-toward-record-after-digital-realty-buyout-deal-2017-06-09).(DLR)
Shares of Nvidia Corp.(NVDA) were up 3.2% to record levels a day after a price target upgrade by Citi, to $180, the highest on Wall Street (http://www.marketwatch.com/story/nvidia-shoots-to-record-after-citi-establishes-street-high-target-2017-06-08).
Other markets: The British pound sank to a seven-week low against the dollar, dropping to $1.2765 from $1.2957 in late trading on Thursday. The dollar was firmer across the board (http://www.marketwatch.com/story/dollar-rises-pound-hits-7-week-low-as-uk-heads-for-hung-parliament-2017-06-09), with the U.S. dollar index , which compares the dollar to a half-dozen major rivals, up 0.5%.
Crude oil prices (http://www.marketwatch.com/story/oil-prices-pinned-down-by-strong-dollar-supply-worries-2017-06-09) traded higher, while gold edged lower.
In Asia (http://www.marketwatch.com/story/nikkei-returns-to-20000-as-asian-markets-warily-eye-uk-election-2017-06-08), the Nikkei 225 index gained on yen weakness, returning to the 20,000 level, with other markets mixed.
(END) Dow Jones Newswires
June 09, 2017 10:55 ET (14:55 GMT)