By Sara Sjolin and Anora M. Gaudiano, MarketWatch
Oracle shares slide after disappointing numbers for its cloud
business
U.S. stock-market indexes advanced on Friday, with the Dow and
S&P 500 scaling fresh intraday records and on track to post
weekly gains, as investors appeared to shake off the latest worries
over progress for tax cuts.
What are stock indexes are doing?
The Dow Jones Industrial Average advanced 110 points, or 0.4%,
to 24,613, trading above its previous record close.
The S&P 500 index gained 16 points, or 0.6%, to 2,668.32,
also trading in record territory. All 11 main sectors were in
positive territory, with consumer staples and health-care stocks
leading the gains up 1%.
The Nasdaq Composite Index rose 21 points, or 0.3%, to
6,877.
All three main indexes were on track to end the week higher.
Small-cap stocks didn't fare as well this week, however. The
Russell 2000 was up 4 points, or 0.3%, to 1,511 but on track to end
the week with 0.7% loss.
What's driving the markets?
Some analysts said the economic environment remains good for
stocks even though the Federal Reserve sees more rate increases
next year than the market is pricing in. On Wednesday, the Fed
raised interest rates by a quarter percentage point and the
so-called dot-plot suggested three more rate increases next
year.
Politics surrounding the tax bill continued to influence
markets, as temporary weakness on Wall Street showed on Thursday,
when investors turned cautious after Florida Sen. Marco Rubio told
Senate leaders he'll vote against the tax bill unless it includes a
larger expansion of the child tax credit.
Several Republican senators have now expressed doubts about the
tax overhaul that is expected to be put up for a final vote next
week, according to The Wall Street Journa
(https://www.wsj.com/articles/house-senate-republicans-reach-deal-on-final-tax-bill-1513185360)l.
Expectations for tax cuts and an overhaul in U.S. tax polices
have helped boost stock markets this year and a failure to push
through the bill could end the current rally, analysts say.
What are strategists saying?
"We've got this far with the tax bill that it will be passed
whether you love it or hate it," said Kim Caughey Forrest, senior
analyst and portfolio manager at Fort Pitt Capital Group.
"There is definitely a momentum in the market thanks to the
prospect of tax cuts, but let's not forget that the economic growth
is also pretty good and has been supporting the market all year.
The retail sales this week suggest that consumers are spending,"
Forrest said.
"The news from Marco Rubio yesterday has cast a little more
doubt over the tax reform bill and left Wall Street in a little bit
of pain last night. However, yesterday really saw the end of the
big data before the Christmas break, so I think with volume
dropping and us approaching the weekend [the bounce today] is just
a bit of a correction from the losses yesterday," said James
Hughes, chief market analyst at AxiTrader, in emailed comments.
"There is still optimism that the tax deal will happen despite
Rubio's comments so overall markets are just correcting and traders
are positioning ahead of what will be a low volume week. However
the lower volume often means the moves can be more erratic," he
added.
What's new in economics?
The Empire State manufacturing index fell slightly
(http://www.marketwatch.com/story/empire-state-index-slips-for-third-month-in-december-2017-12-15)in
December, to a reading of 18 from 19.6 in November, the New York
Fed said Friday. Any reading above zero indicates improving
conditions, though it is the third drop in a row.
Industrial production
(http://www.marketwatch.com/story/us-industrial-production-posts-third-gain-in-a-row-in-november-as-factories-hum-2017-12-15)in
the U.S. rose 0.2% in November to mark the third straight
advance.
Which stocks are in focus?
Some of the last earnings reports of the year were also in
focus, particularly figures from Oracle Corp.(ORCL), whose shares
slumped 5.7%. The software company late Thursday delivered
disappointing second-quarter growth numbers for its cloud business
(http://www.marketwatch.com/story/oracle-shares-slide-as-cloud-growth-misses-street-view-2017-12-14).
Adobe Systems Inc.(ADBE) rose 0.4% after beating forecasts with
its earnings
(http://www.marketwatch.com/story/adobe-shares-rise-after-fourth-quarter-earnings-beat-2017-12-14)
out late Thursday.
Shares of Under Armour, Inc.(UAA) rose 7% after the
sports-apparel maker announced official partnership with Team
Canada through 2024.
Costco Wholesale Corp.(COST) shares rallied 4.2% after the
retailer in Thursday's after-hours session reported first-quarter
earnings and sales above Wall Street forecasts
(http://www.marketwatch.com/story/costco-shares-rise-after-retailers-q1-earnings-beat-2017-12-14).
Shares of CSX Corp.(CSX) dropped 7% after railroad disclosed
chief executive Hunter Harrison is taking a medical leave.
What are other markets doing?
The dollar was largely flat, with the ICE U.S. Dollar index rose
0.3% to 93.757.
Crude oil
(http://www.marketwatch.com/story/oil-fights-to-stay-positive-as-supply-concerns-niggle-2017-12-15)
added 0.3% to $57.23 a barrel, while gold climbed 0.3% to $1,260 an
ounce.
Bitcoin futures rallied 8% to $18,160, after falling for three
straight sessions. Spot bitcoin prices were up 6.1% at $17,546.25,
according to CoinDesk.
Asian markets closed mainly lower
(http://www.marketwatch.com/story/asian-stocks-track-wall-street-declines-kospi-rebounds-2017-12-15),
following the weaker close in the U.S. on Thursday. The negative
sentiment also spilled over to Europe , where all major indexes
traded in red.
(END) Dow Jones Newswires
December 15, 2017 11:02 ET (16:02 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.