By Anora Mahmudova and Sara Sjolin, MarketWatch
Zynga slides premarket after earnings
NEW YORK (MarketWatch) -- After hitting fresh milestones, U.S.
stocks were struggling to push higher, following a
weaker-than-expected consumer-sentiment data.
The S&P 500 hit an intraday-record level of 2,093.71 while
the Dow traded above 18,000 for the first time this year, but gains
were fading. That said, main indexes were still on track to finish
with weekly gains for a second straight week.
The S&P 500 (SPX) gains were led by energy sector stocks, as
hope that oil prices have bottomed brought persisted amid a rally
in the commodity. Six of the 10 main sectors were trading
higher.
The Dow Jones Industrial Average (DJI) was marginally higher,
with more than two-thirds of its 30 components trading in the
green. American Express was leading the decliners for the second
day in a row, after its price target was cut by analysts.
The Nasdaq Composite (RIXF) rose, inching closer to its record
set in heydays of early 2000.
Data: In economic news, consumer sentiment slipped in February
to a three-month low, according to media reports citing the
University of Michigan index released Friday. Separately, the
prices the U.S. paid for imported goods fell sharply again in
January mainly because of much cheaper oil, a trend that is keeping
inflation under wraps. The drop was less than expected, however,
while export prices also decreased.
Investors will be looking for the weekly Baker Hughes (BHI)
rig-count data for any clues to whether oil production in the U.S.
is slowing down. Oil futures (CLH5) were up 4% above $53 a
barrel.
"In view of the low prices up until recently, a further
noticeable decrease in the oil rig count can be expected, which
could further fuel the price rally," analysts at Commerzbank said
in a note.
The data that came out last Friday showed the number of rigs
drilling for oil in the U.S. fell for a ninth straight week to the
lowest level in roughly five years.
Getting set to retire, Dallas Fed President Richard Fisher will
give a speech reflecting on his Federal Reserve career at 1:30 p.m.
Eastern Time.
Earnings: Reporting ahead of the bell, food company J.M. Smucker
Co.(SJM) said sales slipped in the fiscal third quarter, dented by
weak volumes in the company's U.S. retail coffee segment. Shares
dropped initially, but recovered and were 1.7% higher in early
trade.
Movers and shakers:Zynga Inc.(ZNGA) slumped 14% after the
games-maker said late Thursday its fourth-quarter loss widened
significantly more than expected and its revenue forecasts fell
short of expectations.
Groupon Inc.(GRPN) jumped as investors looked past the company's
weak outlook and focused on news that its Ticket Monster business
is a target for acquisition by several companies.
CBS Corp.(CBS) rose after it said late Thursday its
fourth-quarter profit fell compared with the same period a year
ago, but revenue rose.
CyberArk Software Ltd.(CYBR) rallied 15% after a solid
fourth-quarter report released late Thursday.
Other markets: European stock markets posted solid gains after
better-than-expected fourth-quarter economic-growth numbers, and as
Greece and its creditors showed signs of warming up to each other
in the deadlock over debt payments.
Asian markets closed mostly higher, with the Hong Kong market
posting its biggest gain in three weeks.
Metals (GCG5) were on the rise, while the dollar (DXY) rose
against other major currencies. 10-year U.S. Treasurys fell,
sending yield up 2 basis points.
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