US stocks closed higher for the fifth day in a row on Friday as news of the progress in Microsoft Corp's multibillion-dollar stock-buyback program pushed the software maker's shares higher, while a federal judge's favourable ruling lifted Altria Group Inc.
The Nasdaq had its best week in three years and its longest winning streak since January. The Dow had its longest winning streak since May and the S&P 500 recorded its best run since March.
Microsoft shares slowly rose throughout the session to end up 4.4 percent, or $1.09, at $25.79, the highest in nearly four months, after the company said it expects to complete just a portion of a $20 billion share buyback, shifting the rest of the repurchases to later dates, and according to traders, providing a floor for the stock.
A federal judge's favourable ruling helped lift Altria Group Inc shares 4 percent, or $3.22, to $83.97, making it the top contributor to the Dow's gain and the second-biggest positive influence on the S&P 500 after Microsoft. Aside from company-specific news, a week of economic data suggesting the Federal Reserve may leave interest rates unchanged in the short-term supported the rising markets.
"It looks like the economy is slowing down just like the Fed wants," said Giri Cherukuri, head trader at OakBrook Investments LLC, in Lisle, Illinois, adding that milder-than-expected producer price data and tame consumer price numbers earlier in the week helped stocks as well.
The Dow Jones industrial average rose 46.51 points, or 0.41 percent, to end at 11,381.47, while the Standard & Poor's 500 Index advanced 4.82 points, or 0.37 percent, to finish at 1,302.30. The Nasdaq Composite Index, which traded lower much of the session as Dell Inc weighed, closed up 6.34 points, or 0.29 percent, at 2,163.95.
For the week, the blue chip Dow average gained 2.65 percent, the S&P 500 added 2.81 percent, and the Nasdaq Composite jumped 5.16 percent. Shares of Dell, the world's largest personal computer maker, fell 2.8 percent, or 64 cents, to $22.16 on Nasdaq after Goldman Sachs downgraded it to "sell" following news late Thursday of falling profits and word the Securities and Exchange Commission was requesting information on its accounting practices.
Higher crude oil prices boosted recently beaten-down oil companies' shares, further aiding the rise in the S&P 500 and the Dow. US crude oil futures ended up more than $1 on Friday amid worries that Iran would not respond favourably to incentives aimed at resolving a dispute over its nuclear research.
Shares of Exxon Mobil Corp, the world's largest public oil company, rose 1.5 percent, or $1.02, to $69.10, while shares of oil services company Schlumberger Ltd climbed 2.7 percent, or $1.69, to $64.00. Both helped drive the S&P 500 higher.
Crude oil for September delivery rose $1.08 to settle at $71.14 per barrel on the New York Mercantile Exchange. On the downside, Ford Motor Co shares slipped 2.1 percent, or 17 cents, to $8.00 on the New York Stock Exchange after the automaker said it would cut vehicle production for the rest of the year as it accelerates a turnaround plan that has not yielded results fast enough.
Fitch Ratings also cut its debt rating on Ford Motor Co, while Standard & Poor's and Moody's warned they may follow. Volume on the NYSE was light, with 1.34 billion shares changing hands, below last year's daily average of 1.61 billion shares. On Nasdaq, about 1.72 billion shares traded, also below last year's daily average of 1.80 billion. Advancers outnumbered decliners by a ratio of about 7 to 5 on the NYSE, while on Nasdaq, about eight stocks rose for every seven that fell.
Comments
Comments are closed.