By Victor Reklaitis and Sara Sjolin, MarketWatch
Nasdaq nears record close; Credit Suisse ups S&P 500
target
NEW YORK (MarketWatch) -- U.S. stocks finished higher Friday,
rebounding from the prior session's drop and scoring strong gains
for the week.
The S&P 500 (SPX) rose 18.83 points, or 0.9%, to close at
2,108.10. The benchmark climbed 2.7% for the week, helped by
Federal Reserve Chairwoman Janet Yellen, who said 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 it had planned to just a few months ago. The S&P halted a
three-week losing streak and stands just 0.4% below its March 2
record close.
Meanwhile, the Nasdaq Composite (RIXF) advanced 0.7% on Friday
and 3.2% for the week, finishing at 5,026.42. The tech-heavy index
achieved its highest close in 15 years, ending just 0.4% off its
all-time closing high hit on March 10, 2000.
The Dow Jones Industrial Average (DJI) was up 168.62 points, or
0.9%, on Friday and 2.1% for the week, closing at 18,127.65.
Economists at Credit Suisse said in a note Friday that
Wednesday's Fed commentary 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) settled 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 data came out
Friday, but Charles Evans, a leading Fed dove, said he was able to
support the latest policy statement because it did not rule out
keeping rates at zero for a lengthy period
(http://www.marketwatch.com/story/fed-statement-doesnt-rule-out-lengthy-stay-at-zero-evans-2015-03-20).
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.
Stocks saw higher trading volume Friday amid 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. Total composite volume
was at its highest level since Dec. 19, according to a Dow Jones
markets data group.
Individual movers:Biogen Idec Inc.(BIIB) was the biggest gainer
in the S&P 500, closing up 9.8% 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. Nike also was the Dow's best performer,
finishing up 3.7%.
KB Home(KBH) climbed 8.4% 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.
Big decliners in the S&P 500 included Macerich Co.(MAC),
which dropped 4.6% after rival Simon Property Group Inc.(SPG) said
it was making its final buyout offer, and Tiffany & Co.(TIF),
which slumped 4% following 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).
Subscribe to WSJ: http://online.wsj.com?mod=djnwires