By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market pared most of
its gains Friday after an early morning rally following generally
positive consumer spending data petered out by mid-afternoon.
The Nasdaq Composite saw the worst week in 17 months, after a
week-long selloff in biotechs dragged the index down.
The S&P 500 (SPX) ended the day 8.58 points, or 0.5%, higher
at 1,857.62, and recorded a 0.5% loss for the week. With only one
trading session left this month, the benchmark index is set to
finish March roughly where it started.
The Dow Jones Industrial Average (DJI) closed up 58.83 points at
16,323.06 and is 0.1% higher on the week.
The Nasdaq Composite (RIXF) finished the day up 4.53 points, or
0.1%, at 4,155.76. The tech-heavy index is down 2.8% for the week,
its worst performance since Oct 2012.
Read the recap of MarketWatch's live blog of Friday's
stock-market action.
"Today's economic data was as expected, but compared to the last
few months there is an improvement, suggesting that the economy's
slowdown this year is weather-related and temporary," said Kate
Warne, investment strategist at Edward Jones.
"This was enough good news for stocks to go higher this
morning," Warne added.
Consumer spending rose in February at the fastest rate since
November as Americans spent more on health care and utilities, but
in a negative sign, purchases of big-ticket items fell for the
third straight month. Personal income also ticked up in
February.
Next week will offer a barrage of economic data, which are
expected to have less weather-related distortions and provide a
better view of the economy.
Separately, consumer sentiment declined to a final March reading
of 80 -- the lowest level since November -- from a final February
level of 81.6, according to a Friday report on a gauge from the
University of Michigan and Thomson Reuters. A preliminary March
reading pegged the level at 79.9. Economists polled by MarketWatch
had expected a final March level of 81. Economists watch sentiment
levels to get a feeling for the direction of consumer spending.
Read: Spotlight on the economy.
IPOs see mixed action; Biotechs slide
Heavy losses among biotech stocks dragged the Nasdaq Composite
down. The Nasdaq Biotechnology index fell 2.8%. Biogen Idec, Inc.
(BIIB) and Gilead Sciences, Inc. (GILD) were among the top five
losers on the S&P 500, falling 5% and 4.9% respectively.
In corporate news, BlackBerry Ltd. (RIMM) shares slumped 7%
after reporting an adjusted per-share loss that was less than
expected. The company said it anticipates maintaining a strong cash
position and is targeting break-even cash-flow results by the end
of fiscal 2015.
Finish Line Inc. (FINL) rose 2.2% after the athletic-gear
retailer reported its fiscal fourth-quarter earnings rose 25%.
Amazon.com Inc. (AMZN) shares gave up earlier gains and closed
flat after reports that the company plans to offer free streaming
television and music videos to its customers. The firm had
previously planned to charge for the members-only service, reported
The Wall Street Journal. Amazon has denied the reports.
Shares of Restoration Hardware Holdings Inc. (RH) jumped 13%
after the high-end home furnishings retailer topped Wall Street
estimates and issued a healthy outlook.
There were also a number of initial public offerings, with some
more successful than others. CBS Outdoor Americas (CBSO) rose 5.4%
on the first day of trading, but Everyday Health, Inc (EVDY) fell
3.6% on debut.
Asian and European shares rise
Elsewhere, Asian markets ended the week mostly higher, while the
positive mood also helped lift European equities, with all major
national benchmarks trading in positive territory. Gold prices were
under pressure again, oil prices rose (CLK4), while the dollar
(DXY) moved slightly higher.
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