By Victor Reklaitis and Sara Sjolin, MarketWatch
Nasdaq nears record close; Credit Suisse ups S&P 500
target
NEW YORK (MarketWatch) -- U.S. stocks jumped Friday, rebounding
from the prior session's losses and heading for strong weekly
gains.
The S&P 500 (SPX) rose 23 points, or 1.1%, to 2,113. For the
week, the benchmark is on pace for a gain of 2.9%, helped by
Federal Reserve Chairwoman Janet Yellen saying Wednesday that the
central bank will raise interest rates more slowly
(http://www.marketwatch.com/story/fed-takes-step-to-rate-hike-but-scales-back-intended-pace-2015-03-18)
than planned just a few months ago. The S&P is holding just
below its March 2 record close of 2,117.39.
Meanwhile, the Nasdaq Composite (RIXF) advanced 1% on Friday and
3.5% for the week, trading at 5,040. The tech-heavy index on Friday
has climbed as high as 5,042 -- a 15-year intraday record and just
shy of an all-time closing high of 5,048.62 that was achieved on
March 10, 2000.
Tthe Dow Jones Industrial Average (DJI) was up 225 points, or
1.3%, on Friday and 2.5% for the week, trading at 18,184.
Economists at Credit Suisse said in a note Friday that the Fed's
statement was dovish, but that they still expect a rate hike in
June. They also lifted their year-end target for the S&P 500 by
20 points to 2,170, citing improving corporate credit and earnings
revisions stabilizing.
Katie Stockton, chief technical strategist at BTIG, said in a
note Friday that stocks "are resuming their uptrend today," and she
expects "a new all-time high in the near term" for the S&P 500.
Nearly half of the S&P is displaying positive short-term
momentum, she added.
On Thursday, a slide in oil prices hit energy stocks and helped
move the stock market lower
(http://www.marketwatch.com/story/us-stocks-futures-slip-after-fed-fueled-stock-rally-2015-03-19).
Crude prices (CLJ5) were up sharply
(http://www.marketwatch.com/story/oil-rallies-as-dollar-drops-april-contract-set-to-expire-2015-03-20)
on Friday.
Friday's key headlines: No top-tier economic reports are
expected Friday, but Atlanta Fed President Dennis Lockhart called
for judicious oversight of shadow banking
(http://www.marketwatch.com/story/feds-lockhart-calls-for-judicious-oversight-of-shadow-banking-2015-03-20).
Lockhart is a voting member of the Fed's rate-setting board this
year.
The latest reading on U.S. rigs
(http://www.marketwatch.com/story/us-weekly-oil-natural-gas-rig-count-down-56-baker-hughes-2015-03-20)
indicated that the number of rigs actively drilling for oil and
natural gas was down by 56 from last week to 1,069. Oil maintained
most of its big daily gain after that data.
Stocks were expected to see potentially increased volatility and
higher trading volume Friday due to quadruple witching
(http://www.marketwatch.com/story/quadruple-witching-may-bring-added-volatility-volume-2014-06-20),
which means that equity options, stock-index futures, stock-index
options, and single-stock futures expire.
Individual movers:Biogen Idec Inc.(BIIB) was the biggest gainer
in the S&P 500, rising after reporting positive results for an
Alzheimer's treatment
(http://www.marketwatch.com/story/street-gushes-over-alzheimers-drug-but-some-worry-about-overreaction-2015-03-20).
Nike Inc.(NKE) and Darden Restaurants Inc.(DRI) were other
notable S&P gainers in the wake of quarterly earnings that beat
Wall Street's expectations.
KB Home(KBH) climbed after the home builder reported a 29% rise
in quarterly revenue, citing strong orders and selling prices
(http://www.marketwatch.com/story/kb-home-shares-jump-as-profit-sales-top-estimates-2015-03-20),
which helped KB top estimates.
But Macerich Co.(MAC) dropped 4% for the S&P 500's biggest
loss after rival Simon Property Group Inc.(SPG) said it was making
its final buyout offer. Tiffany & Co.(TIF) slumped after the
jeweler gave a weak profit outlook.
Read more about Friday's jumpiest stocks in Movers & Shakers
(http://www.marketwatch.com/storyno-meta-for-guid)
Other markets: European stocks finished higher, scoring their
seventh weekly gain in a row
(http://www.marketwatch.com/story/european-stocks-nudge-higher-with-greek-stocks-advancing-2015-03-20).
Shares on the Athex Composite advanced after Greece agreed to send
a list of overhauled reforms
(http://www.marketwatch.com/story/greece-will-toughen-up-reforms-stick-to-agreed-plan-merkel-2015-03-20)
to European officials within days.
In Asia, Japan's Nikkei 225 ended at an almost 15-year high
(http://www.marketwatch.com/storyno-meta-for-guid). The dollar
(DXY) resumed its post-Fed slump
(http://www.marketwatch.com/story/dollar-steadies-on-renewed-views-of-early-fed-rate-increase-2015-03-20-21031353),
while gold (GCJ5)gained for a third straight day
(http://www.marketwatch.com/story/gold-up-a-third-straight-session-gain-as-dollar-drops-2015-03-20).
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