Stocks manage modest gains
Up-and-down trend continues
Stocks capped another wobbly day of trading on Wall Street with modest gains Friday, though the S&P 500 still ended with its biggest weekly loss in nearly two months.
The benchmark index rose 0.4% after falling 1.3% earlier in the day as investors weighed more grim data showing how badly the coronavirus pandemic is crippling the economy.
The government reported that U.S. retail sales sank a record 16.4% in April, the second steep decline in a row as store closures kept shoppers away. Then the Federal Reserve said that industrial production plunged a record 11.2% last month. Overseas, Germany’s economy shrank in the first quarter, meaning that Europe’s largest economy is in a recession.
Stocks initially fell in response to the dour economic data, then wavered between small gains and losses through the final minutes of trading. The erratic movements echoed much of the market’s action this week and reflect how investors are wrestling between pessimism over the damage the outbreak is inflicting on the economy and cautious optimism that the fallout from the pandemic will begin easing as more U.S. states and countries around the world reopen their economies.
“Investors are really torn,” said Chris Zaccarelli of Independent Advisor Alliance. “There’s one camp of thinking that it’s always darkest before the dawn. And the other camp is thinking this is just the tip of the iceberg.”
The S&P 500 rose 11.20 points to 2,863.70. It ended down 2.3% for the week, its worst showing since late March and its third weekly loss in the last four.
The Dow Jones Industrial Average gained 60.08 points, or 0.3%, to 23,685.42. The Nasdaq composite added 70.84 points, or 0.8%, to 9,014.56. Small-company stocks fared better than the rest of the market. The Russell 2000 index climbed 19.44 points, or 1.6%, to 1,256.99.
Communications, health care and technology stocks accounted for much of the gains as investors continued to bet on internet providers, health insurers and others less affected by the stay-at-home orders.