Stocks post best week for year
Stocks rose Friday for the fourth day in a row, capping their best week so far this year.
It was a relief for investors after the big drops of the previous week.
Stocks fell in morning trading, with the Dow Jones industrial average down almost 63 points. But they turned around after the government said businesses are restocking their shelves faster than analysts had expected.
The Commerce Department said U.S. wholesale stockpiles grew 0.6 percent in April. That’s twice as fast as they grew in March and a sign that businesses are ordering enough goods to lead to increased factory production and sales. Investors had been braced for more sluggish growth.
Oil fell 72 cents to $84.10 per barrel, pushed down by long-term economic worries. But lower energy costs help consumers.
“If you had some doubts about an economic recovery, oil in the 80s is a lot better than oil at $110,” said Jim Dunigan, managing executive of investments for PNC Wealth Management in Philadelphia. Oil traded just below $110 in late February.
The Dow finished 93.24 points higher, or three-quarters of a percent, at 12,554.20. It ended the week up almost 3.6 percent.
The Standard & Poor’s 500 index rose 10.67 points, or 0.81 percent, to close at 1,325.66. The Nasdaq composite rose 27.40 points, or 0.97 percent, to close at 2,858.42.
Two stocks rose for every one that fell on the New York Stock exchange where consolidated volume was 3.4 billion shares.
Nine out of the 10 industry groups in the S&P 500 rose. Only energy stocks declined, following energy prices lower.
Wal-Mart Stores Inc. was the biggest gainer in the Dow, up $2.35, or 3.6 percent, at $68.22. Other companies that depend heavily on a strong economy grew, too, including Intel, up 47 cents, or 1.8 percent, at $26.41, and General Electric, up 20 cents, or 1 percent, to $19.20. Home Depot rose $1.11, or 2.2 percent, to $52.35.
Navistar International rose $4.25, or 17.6 percent, to $28.36 after the activist investor Carl Icahn increased his stake in the truck maker.
Markets fell in Asia. Shanghai’s stock index lost a half-percentage point, its fifth day of losses. Japan’s Nikkei fell 2.1 percent.
Chinese leaders have been showing signs of urgency ahead of May trade and industrial data due out this weekend that might be even weaker than earlier pessimistic forecasts. The Chinese government cut interest rates for the first time in four years and has reduced gasoline and diesel fuel prices for the second time in a month.
“That shows they’re being proactive, but on the other hand, it also makes you wonder, what’s the data is really like?” said Uri Landesman, president of Platinum Partners. “I’m wondering how bad the data’s going to be. I’d be very surprised if it’s good.”
Major European markets fell, although their declines were smaller after the U.S. inventory news was presented. France’s benchmark index lost 0.6 percent, Britain’s and Germany’s each dropped 0.2 percent.