By Anora Mahmudova
NEW YORK (MarketWatch) -- U.S. stock indexes closed slightly
lower on Friday, but recorded solid weekly gains.
The Dow Jones Industrial Average (DJI) broke its six-day winning
streak, closing 1.47 points lower at 16,478.41. The Dow still
posted its second straight weekly gain, adding 1.6% over the
week.
The S&P 500 (SPX) closed marginally lower at 1,841.40,
though it rose 1.3% for the week.
The Nasdaq Composite (RIXF) shed 10.59 points, or 0.3%, to
4,156.59, but it gained 1.3% for the week.
Wall Street stocks rallied on Thursday, extending a record run
after data showed a sharp fall in weekly jobless claims. The Dow
posted its 50th record close this year, while the S&P 500
closed at a record level for the 44th time in 2013. The yield on
the benchmark 10-year Treasury note (10_YEAR) climbed above 3% to
its highest close since July of 2011. Rising yields on the 10-year
note are seen a sign of rising interest rates.
"While current levels still put valuations at reasonable levels,
investors should note that there is abundant skepticism around, as
short interest on S&P 500 components has been rising since
May," said Todd Salamone, director of research at Schaeffer's
Investment Research. "In other words, plenty of people are hedging
or plainly betting against the market," he said.
Speaking of spectacular returns for the S&P 500 in 2013,
John De Clue, chief investment officer at U.S. Bank Wealth
Management, said that gains were partly supported by foreign buying
as well as cash flows into equity funds. "U.S. markets were more
attractive compared to others, so foreign funds, such as sovereign
funds, kept fuelling them," said De Clue.
"Equity markets will probably rise in 2014, thanks to the
improving economy, but also because there is still a lot of cash on
the sidelines," he added.
Shares in Twitter Inc. (TWTR) slid 13% after Ben Schachter, an
analyst at Macquarie, downgraded the stock from neutral to
underperform, citing its extraordinary rally in the past few weeks.
Twitter shares have soared 53% in December. "We believe nothing has
changed in the fundamentals to justify the sharp rise in shares
over the past few weeks," Schachter wrote in a note.
Shares of Cessna maker Textron Inc. (TXT) gained 1.1% after the
company said it would pay $1.4 billion to buy U.S. plane maker
Beechcraft Corp.
Shares of WPCS International Inc. (WPCS) soared 66% after the
company said Thursday that one of its units released a software
platform for bitcoin traders.
Delta Air Lines Inc. (DAL) shares dropped 3.1% after a computer
glitch resulted in exceedingly cheap tickets on the airline's
website and news traveled quickly on social media sites. The
airline said it would honor the tickets.
European markets reopened from a two-day Christmas break to push
higher. The Stoxx Europe 600 index gained 1.1% on Friday and
finished the week with a 2% gain.
The Shanghai Composite outperformed other Asian markets as fear
of stress in China's money markets eased. Japan's Nikkei 225 index
retreated from a six-year high after data showed consumer prices
rising more than expected.
Gold prices ended higher and oil futures gained, but the dollar
fell against other major currencies.
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