By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

Oil prices recover some from a drubbing

NEW YORK (MarketWatch) -- U.S. stocks were stuck in the red on Friday but the main indexes were still on track to book modest weekly gains.

The S&P 500 (SPX) was set to record its largest monthly gain since October 2011.

The main benchmark switched between small gains and losses, with six of its 10 main sectors trading in positive territory. The Dow Jones Industrial Average (DJI) fell slightly. The Nasdaq Composite (RIXF) was trading lower but was within striking distance of 5,000 -- a milestone for the tech-heavy index.

Ahead of the opening bell, the first revision to figures for gross domestic product showed the U.S. economy grew at a slower pace than originally estimated, but still the revision proved better than expected. The economy grew at a revised 2.2% in the fourth-quarter of 2014, the GDP report indicates (http://www.marketwatch.com/story/us-fourth-quarter-gdp-trimmed-to-22-from-26-2015-02-27).

Jonathan Golub, Chief U.S. market strategist at RBC Capital Markets, said that investors are usually more interested in forward-looking data, such as ISM, rather than backward-looking GDP data.

"Today's revision was already anticipated and when you annualize quarterly data, those changes were meaningless. Besides, the data were about what happened months ago. We think investors will care more about Monday's ISM figures," Golub said.

Friday's mixed economic data provided little new insight and to investors. The February reading of Chicago PMI tumbled to a 5 1/2 year low of 45.8, MNI Indicators said Friday. The number indicated a contraction, impacted by West Coast port strikes and a harsh winter. But pending-home sales rose in January to the highest level since Aug. 2013, the National Association of Realtors reported Friday. University of Michigan/Thomson Reuters consumer-sentiment index dipped to 95.4 from January's 98.1.

Michael Arone, chief investment strategist at State Street Global Advisors, said in aggregate, the economy has been growing slowly but steadily.

"There were good aspects on the GDP report and they pointed to increased business spending and wage acceleration. While we are not roaring at a 4% growth like in the 90s, we need to remember that we also have much lower interest rates and low inflation," Arone said.

"The biggest driver in stock markets is central bank liquidity. Close to 20 central banks cut interest rates and are very accomodative. As companies are at the highest level of profitability, in such an environment, price-to-earnings ratios of 17-18 are not overly concerning," he said.

Oil prices recover: A sharp drop in crude prices on Thursday was unwinding as both WTI (CLJ5) and Brent crude gained, which lent some support to energy names. Brent crude is set for its biggest monthly gain in nearly six years, rising 1.6% for the month.

Read: There is more to oil's plunge than record-high supplies (http://www.marketwatch.com/story/theres-more-to-oils-thursday-plunge-than-record-high-supplies-2015-02-26)

The dollar held on to gains after the U.S. Dollar Index (DXY) hit levels not seen since 2003 on Thursday. European stocks were slightly higher, while property shares dragged Hong Kong stocks lower.

Stocks to watch: Shares of Apple Inc.(AAPL) were lower after Ericsson AB said it would sue the tech giant for infringing on 41 patents (http://www.marketwatch.com/story/ericsson-sues-apple-for-infringing-41-patents-2015-02-27) it says are crucial to the functionality of Apple's devices.

Apple said Thursday that it will hold an event on March 9, and the company hinted that it will be related to the launch of its Apple Watch, as the invitation said "Spring Forward," The Wall Street Journal reported (http://blogs.wsj.com/digits/2015/02/26/apple-plans-special-event-on-march-9-likely-for-smartwatch/).

(http://blogs.wsj.com/digits/2015/02/26/apple-plans-special-event-on-march-9-likely-for-smartwatch/) (http://blogs.wsj.com/digits/2015/02/26/apple-plans-special-event-on-march-9-likely-for-smartwatch/)J.C. Penney Co. Inc.(JCP) slid 6.8% after the retailer posted a surprise fourth-quarter loss (http://www.marketwatch.com/story/jc-penney-shares-tumble-after-company-posts-quarterly-loss-2015-02-26).

Gap Inc.(GPS) shares rose 3% after the retailer announced buybacks and a dividend increase late Thursday (http://www.marketwatch.com/story/gap-shares-rise-after-fourth-quarter-profit-beats-estimates-2015-02-26).

(http://www.marketwatch.com/story/gap-shares-rise-after-fourth-quarter-profit-beats-estimates-2015-02-26) (http://www.marketwatch.com/story/gap-shares-rise-after-fourth-quarter-profit-beats-estimates-2015-02-26)Later Friday, Berkshire Hathaway Inc.(BRKA) (BRK/A) will release results.

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