By Anora Mahmudova and Sara Sjolin, MarketWatch
Nasdaq posts gains for the eighth-straight session
NEW YORK (MarketWatch) -- U.S. stocks rallied on Friday, sending
the S&P 500 and Dow Jones Industrial Average to record levels
on news that eurozone ministers agreed to a four-month extension of
Greece's bailout.
The main indexes booked weekly gains for the third consecutive
week.
The antiausterity Greek government sought an extension to its
loan agreement and on Friday after hours of meetings eurozone
ministers reached an agreement. Athens has to submit a list of
reform proposals by Monday.
Read: Greek bailout extended by 4 months
(http://www.wsj.com/articles/eurozone-approves-greece-bailout-extension-1424435121?mod=mktw)
The S&P 500 (SPX) climbed 12.85 points, or 0.6% to 2,110.30,
with nine of its 10 main sectors finishing higher. The benchmark
index gained 0.6% over the week.
The Dow Jones Industrial Average (DJI) swung from a triple-digit
loss to a triple-digit gain, adding 154.67 points, or 0.9%, to
18,140.44. The blue-chip index closed at a record high for the
first time this year and booked a 0.7% gain over the week.
The Nasdaq Composite (RIXF) rose for the eighth consecutive
session, adding 31.27 points, or 0.6%, to 4,952 and gaining 1.3%
over the week. The tech-heavy index outperformed other benchmarks
so far this year, gaining 4.6%, compared with a gain of 2.5% for
the S&P 500.
The stock market had been trending higher, but news of an accord
between Greece and its creditors helped fuel a rally.
Jeffrey Saut, chief investment strategist at Raymond James,
dismissed daily moves, but noted that there are probably many
traders with short positions who wouldn't 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, pointed to the Greek reports as another example the market
failed to fail, implying that equity values are growing lofty.
"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.
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: Nordstrom Inc. (JWN) turned in fourth-quarter earnings
of $255 million, or $1.32 a share, missing Wall Street's consensus
estimate of $1.35 a share. Sales rose to $3.94 billion from $3.61
billion. Shares dropped 4.4%.
Intuit Inc. (INTU) shares jumped 6.2% 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.
Fannie Mae shares dropped 7.5% after the company offered a dour
earnings outlook as it reported quarterly profits that sank by
about 80%.
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
(http://www.marketwatch.com/story/crude-oil-heads-for-first-weekly-loss-in-a-month-2015-02-20)(CLH5)
settled 1.5% lower at $50.34 a barrel, and booked their first
weekly loss in a month.
Gold prices (GCJ5) settled slightly lower at $1,204.90 an ounce
and lost 1.8% over the week.
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