By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market climbed on
Friday, shrugging off mixed economic reports, including producer
prices, industrial production and consumer sentiment.
The main benchmarks were on track to record a second straight
week of gains, with the S&P 500 on track to record its largest
weekly gain in four months.
Stock prices were boosted by a relative calm on the geopolitical
scene over the past week, while soft economic reports eased fears
that the Federal Reserve would hike rates sooner rather than
later.
The S&P 500 (SPX) picked up 7.7 points, or 0.4%, to
1,963.00.
The Dow Jones Industrial Average (DJI) added 52 points, or 0.3%,
to 16,765.10.
The Nasdaq Composite (RIXF) gained 27 points, or 0.6%, to
4,479.87.
Natalie Trunow, chief investment officer of equities at Calvert
Investments, said the broader environment as well as healthy
earnings are supporting the market.
"Flare-ups in the geopolitical scene have impacted risk-aversion
to some degree, but fundamentals remain healthy -- the U.S. economy
is growing and corporations' profits are growing," Trunow said.
In economic news, U.S. producer prices inched up in July, a
second consecutive month of gains, led by services such as
transportation and warehousing, the government reported Friday.
That is one of several recent inflation gauges that show price
growth isn't running too hot for the Fed.
Separately, thanks to a sizable jump in auto production,
industrial production rose in July, marking the sixth month of
gains, the Federal Reserve said Friday.
A preliminary August reading on the University of
Michigan/Thomson Reuters consumer-sentiment index fell to the
lowest level since November, however, investors shrugged off the
report.
At 10:45 a.m. Eastern, Narayana Kocherlakota, the Minneapolis
Fed president, will talk about the economy and the state of
community banking at the Independent Community Bankers of
Minnesota's annual meeting. Kocherlakota, one of the Fed's leading
doves, is a voting member of the Fed policy committee this
year.
John De Clue, chief investment officer at U.S. Bank Wealth
Management, said it was not surprising to see this market so
resilient in the face of geopolitical concerns.
"Second-quarter earnings have been better than many of us
expected and the economy is growing. The fact that we are not
seeing larger pullbacks mean that investors are not alarmed by the
impact of geopolitical issues," De Clue said.
In Ukraine on Friday, border guards and customs officers began
inspecting a convoy of trucks that Russia says contains
humanitarian aid for war-torn eastern Ukraine. Ukraine has said the
convoy could be used as a prelude to a Russian invasion.
Stocks in focus
Monster Beverage (MNST) shares leapt on Coca-Cola's (KO) move to
acquire a 17% ownership stake in the energy drink company, as part
of a long-term partnership deal. Coke will make a $2.15 billion
cash payment and transfer its global energy drink business to
Monster.
Achillion Pharmaceuticals (US-ACHN) rallied in heavy volume
following positive results from a clinical trial related to
sovaprevir, the company's experimental hepatitis C treatment.
SeaWorld Entertainment (SEAS) shares rallied after the company
confirmed that it will upgrade its killer whale tanks, succumbing
to public pressure from animal activists.
Applied Materials Inc. (AMAT) gained, after the chip-making
equipment provider's quarterly sales and earnings report topped
Wall Street expectations. Read more about the day's notable movers
here.
In other markets, 10-year Treasury yields fell 2 basis points to
2.38%. Oil futures (CLU4) edged higher and gold futures (GCZ4) fell
1.5%. In Asia, the Hong Kong Hang Seng index finished at its best
level in more than three years. European stocks were higher.
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