NEW YORK: US stocks finished with a split decision Friday after a wobbly day of trading. Amazon led a rally among retailers, but Exxon Mobil dragged energy companies lower to end an uneven week on Wall Street.
So far the first-quarter earnings season has been a strong one for US companies, but it hasn’t thrilled investors. On Friday Amazon, Microsoft and Expedia all climbed after reporting earnings, but Exxon, Charter Communications and Starbucks all slumped.
According to FactSet, about 80 per cent of the S&P companies that have reported their results have announced a larger per-share profit than analysts expected.
High-dividend companies like utilities rose as bond yields slipped, but defence contractors fell. Asian stocks rose following the landmark summit of the leaders from North and South Korea.
This week investors worried that rising raw materials costs, as well as higher interest rates and wages, could eat into corporate profits. Meanwhile they were pleased with strong results from Facebook, Amazon, Microsoft and others. The S&P 500 index finished the week almost exactly where it started.
Karyn Cavanaugh, senior market strategist for Voya Investment Strategies, said investors haven’t regained their confidence since February’s market plunge. But in her view, the economy continues to do well and there are few signs that inflation or wages are about to rocket higher, an outcome that could dent corporate profits.
“There’s reason to think things are very, very good, but not overheating. That’s a great environment for earnings,” she said. “The market is getting a little bit spoiled.”
The S&P 500 index gained 2.97 points, or 0.1 per cent, to 2,669.91. The Dow Jones industrial average lost 11.15 points, or less than 0.1 per cent, to 24,311.19. The Nasdaq composite rose 1.12 points to 7,119.80. The Russell 2000 index of smaller-company stocks lost 1.66 points, or 0.1 per cent, to 1,556.24. Most of the stocks on the New York Stock Exchange finished higher.
