U.S. stocks closed higher Friday, rebounding from the prior session’s drop and scoring strong gains for the week.
The S&P 500 SPX, +0.90% 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 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 COMP, +0.68% 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 DJIA, +0.94% 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. Crude prices CLJ5, +4.34% settled up sharply 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.
The latest reading on U.S. rigs 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, 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, +9.76% was the biggest gainer in the S&P 500, closing up 9.8% after reporting positive results for an Alzheimer’s treatment.
Nike Inc. NKE, +3.72% and Darden Restaurants Inc. DRI, +2.90% 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, +8.38% climbed 8.4% after the home builder reported a 29% rise in quarterly revenue, citing strong orders and selling prices, which helped KB top estimates.
Big decliners in the S&P 500 included Macerich Co. MAC, -4.59% which dropped 4.6% after rival Simon Property Group Inc. SPG, +2.73% said it was making its final buyout offer, and Tiffany & Co. TIF, -3.98% which slumped 4% following a weak profit outlook.
Other markets: European stocks finished higher, scoring their seventh weekly gain in a row. Shares on the Athex Composite GD, +2.87% advanced after Greece agreed to send a list of overhauled reforms to European officials within days.
In Asia, Japan’s Nikkei 225 NIK, +0.43% ended at an almost 15-year high. The dollar DXY, -1.28% resumed its post-Fed slump, while gold GCJ5, +1.09% gained for a third straight day.
Source: MarketWatch
