By Anora Mahmudova and Sara Sjolin, MarketWatch
GDP data unchanged in fourth quarter
NEW YORK (MarketWatch)--U.S. stocks moved between small gains
and losses Friday, with the main indexes looking set to finish the
week with hefty losses.
Ahead of the opening bell, investors assessed the final revision
to the fourth-quarter GDP, which remained unchanged at 2.2%. The
report also showed that quarterly corporate profits over the same
period fell for the first time since 2008.
Analysts said that worries about sluggish corporate profits had
been weighing on sentiment lately.
The S&P 500 (SPX) was little changed at 2,056.04, with seven
of its 10 main sectors trading higher. Energy stocks were leading
the losses, while defensive sectors such as utilities and
healthcare companies were attracting buyers.
The Dow Jones Industrial Average (DJI) wasdown 12 points at
17,666
The Nasdaq Composite (RIXF) added 0.1% to 4,868.
Jeff Carbone, founder and senior partner for Cornerstone
Financial Partners, noted that an expected drop in corporate
earnings in the fourth quarter is pointing to a sluggish
economy.
"The weakness over the past week was mostly driven by
geopolitical concerns and worries over sluggish profit earnings. We
will have to wait until the actual earnings season to find out
whether it was weather-related or not," Carbone said.
"We still believe stocks will finish the year higher, but
perhaps now is the time to rebalance portfolios," he added.
Don't miss:Corporate earnings fell in 2014 for the first time
since 2008
(http://www.marketwatch.com/story/corporate-profits-fall-in-fourth-quarter-2014-2015-03-27)
Yellen speech: Fed Chairwoman Janet Yellen speaks at the Federal
Reserve Bank of San Francisco Conference on the "New Normal for
Monetary Policy" just before the closing bell. The central bank
last week dropped the word "patient" from its statement, but Yellen
stressed the Fed is in no hurry to raise rates. Her speech starts
at 3:45 p.m. Eastern Time.
Data: The U.S. economy grew 2.2% in the fourth quarter of 2014,
unchanged from the government's prior estimate. Exports and
consumer spending, especially on health care, were revised to show
a stronger increase, but that was offset by a reduction in how much
companies spent to build up inventories, the Commerce Department
said Friday.
The final reading of the University of Michigan's consumer
sentiment survey for March was 93--above the 92.5 forecast in a
MarketWatch-compiled economist survey. The final reading is still
at a four-month low.
Stocks to watch:GameStop Corp.(GME) slid 1.5% after the
videogame retailer's quarterly results and outlook fell short of
Wall Street estimates
(http://www.marketwatch.com/story/gamestop-shares-decline-on-earnings-outlook-2015-03-26).
The report came out late Thursday.
Quicksilver's(ZQK) shares tumbled 7.6% after the company ousted
its chief executive Andy Mooney and installed Pierre Agnes, who has
worked at the firm for 27 years as the new CEO.
Shares of Orexigen Therapeutics Inc.(OREX) climbed 3.9% after
the biotech firm received a green light from European regulators
for its Mysimba diet drug.
Ahead of the bell on Friday, BlackBerry Ltd. (RIMM) jumped 4.3%
after reporting fourth-quarter earnings of 4 cents a share, beating
forecasts of a four-cent loss.
For more on notable movers, read Movers & Shakers column.
(http://www.marketwatch.com/story/blackberry-carnival-finish-line-earnings-in-focus-2015-03-27)
Other markets: Crude-oil futures (CLK5) retreated
(http://www.marketwatch.com/story/crude-oil-prices-fall-as-yemen-conflict-escalates-2015-03-27)
after logging a five-day winning streak on Thursday. Those moves
came after Saudi Arabian airstrikes in Yemen raised fresh concerns
over potential disruptions to crude supplies. For the week, the May
contract was still looking at an 8% advance.
The ICE dollar index (DXY) reversed gains and was a touch lower
after the weaker GDP figures. Both Europe and Asian equity markets
were mixed.
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