U.S. Stocks Mostly Flat in Quiet Session
May 26 2017 - 5:31PM
Dow Jones News
By Riva Gold and Corrie Driebusch
The S&P 500 snapped a two-week losing streak as the index
climbed to another record Friday.
Stocks were little changed overall in a quiet session Friday
ahead of the long holiday weekend. It was the slowest trading day
of the year, as measured by number of shares changing hands on
major U.S. exchanges.
The S&P 500 edged higher to its 20th record of the year and
notched a weekly gain of 1.4%, its biggest since the end of April.
The Nasdaq Composite also closed at a record.
Stocks have risen on stronger-than-expected first-quarter
earnings, continued signs of a steady economy and expectations that
the Federal Reserve will only raise rates gradually.
"We've had a strong start to the year, but the question is: Is
this the calm before the storm?" said Allen Bond, portfolio manager
of the Jensen Quality Growth Fund, which manages just over $5
billion.
While the market is looking expensive and there may be better
opportunities overseas, low volatility and investor confidence
suggest there might be a bit further for the market to climb, some
analysts and fund managers said.
Mr. Bond said he believes recent data indicates healthy if not
robust economic growth. That, along with solid earnings, makes him
optimistic about where stocks are headed.
The Dow Jones Industrial Average edged down 2.67 points, or less
than 0.1%, to 21080.28 on Friday. The S&P 500 added 0.75
points, or less than 0.1%, to 2415.82 and the Nasdaq Composite rose
4.94 points, or less than 0.1%, to 6210.19.
Companies that operate rail tracks or trains outperformed the
broader market Friday. Kansas City Southern rose 2.88, or 3.1%, to
95.95, while Norfolk Southern added 2.56, or 2.1%, to 122.33.
Shares of Signet Jewelers fell for a second day in a row after
missing earnings expectations. Its stock declined 99 cents, or 2%,
to 49.31, putting its weekly loss at 16%.
The two sectors that led gains in the S&P 500 during the
week were utilities and technology, with both adding more than
2%.
Utilities companies, often referred to as bond proxies because
of their steady dividend payments, have climbed as inflation
expectations have moderated.
Tech shares have risen 20% so far this year, as investors have
scooped up companies that have outperformed the broader market in
the years since the financial crisis.
Amazon.com, though classified in the S&P 500 as a consumer
company, has risen alongside big tech companies. Its stock traded
within a few dollars of $1,000 on Friday, closing up $2.40, or
0.2%, at $995.78.
Its price has soared from around $68 apiece a decade ago, a sign
not only of the company's growth, but also how fewer companies are
choosing to "split" their stocks to boost the number of shares and
lower prices.
Separately, energy shares were the biggest decliners over the
past week, as the price of oil dropped. U.S.-traded crude oil for
July delivery climbed 1.8% to $49.80 a barrel Friday, but ended the
week down more than 1.7%.
Oil prices declined earlier in the week on disappointment that
the Organization of the Petroleum Exporting Countries didn't take
more aggressive measures to cut production at a meeting in
Vienna.
Although OPEC members agreed to extend production cuts through
March 2018, "the market had been speculating in deeper cuts and a
longer commitment," said Martin Enlund, analyst at Nordea.
Energy stocks in the S&P 500 closed 2.1% lower on the
week.
The Stoxx Europe 600 declined 0.2% Friday, ending the week down
less than 0.1%.
In Asia, Japan's Nikkei rose 0.5% in the past week, and South
Korea's Kospi Composite Index and India's Sensex rose to
records.
Write to Riva Gold at riva.gold@wsj.com and Corrie Driebusch at
corrie.driebusch@wsj.com
(END) Dow Jones Newswires
May 26, 2017 17:16 ET (21:16 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.