Stocks were able to eke out moderate gains on Friday after expiring stock options and bargain hunting prompted choppy trading during the majority of the session. The major averages all finished in positive territory by varied margins, moving back towards the yearly highs posted earlier this week.
With the lack of any notable economic catalysts to drive trading, the markets turned their focus to news from the corporate world. Oracle Corp. (ORCL) said that its second quarter profit rose 12 percent from last year, helped by higher revenue and improved margins.
The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue.
Meanwhile, footwear, apparel and equipment maker Nike, Inc. (NKE) reported a decline in profit for the second quarter ended November 30th, as revenues dropped 4 percent mainly due to declines in its mature markets including North America and Western Europe.
In other news, the close of the UN Climate Change Conference in Copenhagen has been closely watched, with the U.S. and China, the world's two largest CO2 producing countries, reaching a preliminary agreement on taking the first step toward limiting climate change, leaving the door open to modify and build on the accord.
The major averages all saw some upside in late-session dealing, with the Dow moving back into positive territory, while the Nasdaq and S&P 500 extended their earlier gains. The Dow gained 20.63 points or 0.2 percent to 10,328.89, the Nasdaq advanced by 31.64 points or 1.5 percent to 2,211.69 and the S&P 500 rose by 6.31 points or 0.6 percent to 1,102.39.
The week's choppy trade contributed to a mixed performance for the week. While the Nasdaq rose 1 percent for the week, the Dow fell by 1.4 percent and the S&P 500 declined by 0.4 percent.
Sector News
Banking and gold stocks were some of the day's best performers, driving the Kbw Bank Index and the NYSE Arca Gold Bugs Index up by 2.3 percent and 2.1 percent, respectively. The day's gains helped the indices move off of yesterday's lows.
Software stocks were also notably higher on the day, with the NYSE Arca Software Index advancing by 2.2 percent. With the move, the index closed at its best level in sixteen months.
Shares of Oracle helped to lead the sector higher, surging by 6.4 percent and setting their best closing price in nearly nine years. The gains came after the aforementioned quarterly results sparked buying interest in the stock.
Wireless, brokerage, computer technology and biotechnology stocks also rose, while airline and some healthcare provider stocks saw modest losses.
Dow Components
Intel (INTC) was the Dow's best percentage gainer, climbing by 2.9 percent. With the advance, the stock bounced off of the six-week closing low set yesterday.
Microsoft (MSFT) also saw a strong upward move, advancing by 2.6 percent. The upward move lifted the stock to its best closing price in nineteen months.
Hewlett Packard (HPQ), JP Morgan Chase (JPM) and Bank of America (BAC) also saw significant gains, while notable weakness was visible among shares of Boeing (BA), which fell by 1.9 percent. With the pullback, the stock moved further off the fourteen and a half month closing high set on Monday.
General Electric (GE), Caterpillar (CAT) and Home Depot (HD) also declined, among others, limiting the gain by the blue chip index.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region closed mostly lower on Friday. Hong Kong's Hang Seng Index fell by 0.8 percent, while Japan's benchmark Nikkei 225 Index edged down by 0.2 percent.
The major European markets also finished the day on the downside. While the French CAC 40 Index fell by 1 percent, the U.K.'s FTSE 100 Index and the German DAX Index fell by 0.4 percent and 0.2 percent, respectively.
In the bond markets, treasuries were moderately weaker. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, closed at 3.533 percent, posting a gain of 4.6 basis points.
Looking Ahead
During the approaching Christmas-holiday shortened week, the markets may turn their focus to the final revision of third quarter GDP, data on home sales, consumer sentiment and the customary weekly jobs report.
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