By Anora Mahmudova and Sara Sjolin, MarketWatch
Manufacturing activity expands in February, but at a slow
pace
NEW YORK (MarketWatch) -- U.S. stocks climbed into positive
territory on reports that eurozone ministers have reached an accord
over Greece's debt obligations. The main indexes were looking at
weekly gains.
News outlets cited a Greek government official, who said
Eurogroup ministers and Greece have agreed on a draft accord
(http://www.marketwatch.com/story/greek-official-says-apparent-accord-reached-bloomberg-2015-02-20)
that could extend Greece's bailout.
The S&P 500 (SPX) erased earlier losses and was 0.2% higher
at 2,101, with five of its 10 main sectors trading in the green.
Closing at this level would mean the third record close this
year.
The Dow Jones Industrial Average (DJI) jumped 76 points to
18,062 and closing at this level would mark the first record close
of this year.
The Nasdaq Composite (RIXF) marched higher and was looking at a
solid weekly gain. The tech-heavy index outperformed other
benchmarks so far this year, gaining nearly 4%, compared with a
gain of less than 2% for the S&P 500.
The stock market has been trending higher, but news of a
possible accord between Greece and its creditors gave investors an
excuse to drive up the prices.
Jeffrey Saut, chief investment strategist at Raymond James,
dismissed daily moves as noise, but noted that there are probably
many traders with short positions who would not want to go into the
weekend holding those positions in the wake of positive Greek
news.
John Manley, chief equity strategist at Wells Fargo Advantage
Funds, noted that the Greece news is yet another example this
market failed to fail.
"Investors are building up strong confidence, as we see how
every dip in this market is bought. Bull markets end when investors
get excited and stay excited. The trip to that excitement has
begun, but it may last anywhere from 6 months or 18 months," Manley
said.
Channing Smith, portfolio manager at Capital Advisors, taking a
slightly longer view of the market, said it is hard to explain
investor enthusiasm that had led to the rally so far this
month.
"Investor optimism has been fueled the relative strength of the
U.S. economy, unbridled faith in central banks across the globe,
which have broadly adopted easy-money policies amid deflation
fears, and lack of alternatives, Smith said.
Key decision on Greece: After a five-hour meeting, a Greek
official said that eurozone ministers had reached a "broad
consensus" on a common statement on Greece's finances. The draft
agreement has been sent to all 19 member governments, which will
need to approve it unanimously.
Data: Friday's sole piece of U.S. economic data showed that
manufacturing activity picked up in February, with the Markit flash
purchasing managers index climbing to 54.3, above forecasts by
economists polled by MarketWatch. However, details were much weaker
and indicated the U.S. economy has entered a slower growth
phase.
PMI readings out of the eurozone showed business activity in the
currency union grew
(http://www.marketwatch.com/story/european-economy-shows-signs-of-revival-2015-02-20)
at a faster pace in February than expected, to reach a seven-month
high.
Earnings: Farm-equipment manufacturer Deere & Co.(DE) was
down slightly after a lowered outlook offset a profit beat.
Wal-Mart's(WMT) shares fell 0.6% after analysts at Barclays
downgraded the company to equal weight from overweight and cut
their target price to $85 from $90.
Cabot Oil & Gas Corp.(COG) swung to a fourth-quarter loss
amid plunging oil prices and cut its growth outlook. The company
said it slashed its capital budget for 2015 to $900 million from
the roughly $1.5 billion it had expected to spend in October.
Noodles & Co.(NDLS) tanked 25% after the restaurant chain
late Thursday reported fourth-quarter earnings that fell short of
estimates
(http://www.marketwatch.com/story/noodles-stock-plunges-after-results-outlook-disappoint-2015-02-19)
(http://www.marketwatch.com/story/noodles-stock-plunges-after-results-outlook-disappoint-2015-02-19).
Intuit Inc. (INTU) shares jumped after its chief financial
officer said Thursday that the company hasn't found any evidence
that its systems were hacked into in connection with a number of
fraudulent tax-return filings this month.
For more on notable movers, read our Movers & Shakers column
(http://www.marketwatch.com/story/deere-labcorp-cabot-oil-earnings-in-focus-2015-02-20).
Other markets: Oil (CLH5) swung between gains and losses on
Friday, but was still looking at its first weekly loss in a month
(http://www.marketwatch.com/storyno-meta-for-guid).
Gold prices (GCJ5) gave up earlier gains and inched lower, while
the dollar (DXY) traded mixed against other major currencies.
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