By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

Alcoa shares drop after downbeat results

U.S. stocks traded in a narrow range, switching between small gains and losses, Friday but the main indexes were on track to post sizable weekly gains.

Friday's modest advance follow days of global equity-market rallies, in part fueled by a sharp rebound in commodity prices.

The S&P 500 was flat at 2,013 and was on track to post its biggest weekly gain this year. Health-care stocks led the gains, while six of its 10 main sectors were trading lower. Sentiment appeared to closely track oil prices.

The Dow Jones Industrial Average was also flat at 17,060. The Nasdaq Composite was 13 points, or 0.2%, higher at 4,823, in part buoyed by gains in the battered biotechnology sector. The iShares Nasdaq Biotechnology ETF was up 1%, reversing an earlier intraday decline in the exchange-traded fund.

"Unlike two weeks ago, we are in an environment where the path of least resistance is to go higher and that is encouraging," said Maris Ogg, president at Tower Bridge Advisors.

"The next big hurdle for markets is earnings," said Ogg.

So far, earnings have been lackluster with Alcoa Inc. posting disappointing results after the close of trading on Thursday.

The aluminum producer said it now expects 2015 automotive production growth in China to be in the range of 1% to 2% (http://www.marketwatch.com/story/alcoa-slashes-it-outlook-for-chinas-production-of-cars-heavy-duty-trucks-2015-10-08), down from a previous outlook of 5% to 8% growth. Shares were off 5.4% in Friday trade.

This week's stock-market advances came after Fed minutes showed officials were reluctant to raise interest rates due to global risk concerns. Mike O'Rourke, chief market strategist at JonesTrading, criticized the post-minutes gains, saying they were "another example of today's broken markets."

"Who is gleaning market-moving insights into three-week-old minutes while the data has shifted over the subsequent time?" said O'Rourke in a note. "The equity market is once again in the position where the price action is the lone bullish catalyst." And that, he says is the most fleeting of all potential drivers of asset prices.

U.S. import and export prices dipped in September (http://www.marketwatch.com/story/us-import-prices-dip-slightly-in-september-2015-10-09), underlying continued weakness in demand. The prices the U.S. paid for imported goods fell by a seasonally adjusted 0.1% in September, much smaller than the 1.6% plunge in the prior month, the government said Friday. The price of U.S.-made goods exported to other nations declined by 0.7% last month.

Stocks to watch: Outside of post-earnings reaction from Alcoa, shares of Gap Inc. (GPS) sank 7.7% after the fashion retailer reported late Thursday (http://www.marketwatch.com/story/gap-reports-downbeat-outlook-sept-sales-drop-2015-10-08) that total sales fell 1% in September, hit by a stronger dollar and weakness for its Banana Republic unit.

Tesla Motors Inc.(TSLA) fell 2.8% after Barclays reportedly downgraded shares of the company.

Shares of International Paper Co. (IP) jumped 7% after it announced late Thursday is plans to sell its 55% stake in a joint Venue in China.

Read: Elon Musk: Here's why we call Apple the 'Tesla graveyard' (http://www.marketwatch.com/story/elon-musk-heres-why-we-call-apple-the-tesla-graveyard-2015-10-09)

Other markets:Asian shares rallied (http://www.marketwatch.com/story/asian-markets-rise-after-fed-minutes-cast-doubt-on-rate-hike-2015-10-09) in the wake of the Fed minutes and hopes for lower U.S. rates for longer. The Shanghai Composite Index closed up 1.2%, while the Nikkei 225 index gained 1.6%.

European stocks (http://www.marketwatch.com/story/european-stocks-climb-for-sixth-day-after-dovish-fed-minutes-2015-10-09) were also enjoying gains, driven by commodity-related stocks.

A weaker dollar (http://www.marketwatch.com/story/dollar-steadies-in-wake-of-dovish-tone-out-of-fed-minutes-2015-10-09) gave way to a rally for crude oil (http://www.marketwatch.com/story/oil-atop-50-as-dollar-falls-market-eyes-possible-producer-collaboration-2015-10-09), with U.S. futures prices up $1.06 to $50.49 a barrel. Gold prices climbed (http://www.marketwatch.com/story/metals-rally-after-as-us-rate-hike-expectations-fade-2015-10-09) as the dollar pulled back, gaining $7.20 to $1,151.50 an ounce.

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(END) Dow Jones Newswires

October 09, 2015 10:31 ET (14:31 GMT)

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