Stocks close week higher as indexes end session mixed

U.S. stocks limped to the finish line in another winning week, with indexes turning in a mixed performance Friday.

The Standard & Poor’s 500 index slipped 3.13 points, or 0.1%, to 2,378.25 on Friday. Gains a couple of days earlier fueled by the Federal Reserve helped the index rise 0.2% for the week. It’s the seventh weekly gain for the S&P 500 in the last eight weeks, and the index is within 1% of its record high.

The Dow Jones industrial average fell 19.93 points, or 0.1%, to 20,914.62. The Nasdaq composite rose 0.24 of a point, or 0.004%, to 5,901.00. The Russell 2000 index of small-cap stocks rose 5.49, or 0.4%, to 1,391.52. Three stocks rose for every two that fell on the New York Stock Exchange.

The midweek rally came after the Federal Reserve gave a more measured forecast for interest rate increases than some investors expected. While raising rates by a quarter of a percentage point, the central bank said that it’s still planning three increases this year. That surprised some investors, who thought four hikes were possible given the pickup in the economy and inflation. Not only did stocks rise after the announcement, but bond yields fell sharply.

Now investors are turning their attention to the market’s next potential flashpoints, said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management. Those include whether Washington will deliver on promises to cut taxes, increase infrastructure spending and otherwise boost the economy. They’re also waiting for upcoming elections in Europe. Investors worry that wins by nationalist candidates there could lead to weaker resolve for the European Union to stick together.

Treasury yields slipped, resuming their slide that began with the Fed’s announcement. The 10-year Treasury yield fell to 2.50% from Thursday’s 2.54%. The two-year yield fell to 1.31% from 1.34%, and the 30-year yield fell to 3.11% from 3.15%.

Financial stocks declined in sync with bond yields. The two have tended to move in the same direction recently because higher rates would enable banks to charge more for loans and earn bigger profits. Financial stocks fell 1.1%, the largest loss among the S&P 500’s 11 sectors.

Healthcare stocks also were weak. Amgen slid 6.5% to $168.61, posting the biggest loss in the S&P 500, after results from a study of its cholesterol drug Repatha disappointed investors.

On the other end were dividend-paying stocks, which benefited from the fall in bond yields. Utilities stocks in the S&P 500, which pay some of the biggest dividends, rose 0.6%.

Adobe surged 3.8% to $127.01, notching one of the biggest gains in the S&P 500, after reporting stronger quarterly revenue and earnings than analysts expected.

Tiffany sparkled, climbing 2.7% to $92.42, after the jeweler also reported better profit than analysts expected for its latest quarter. Strong demand in China and Japan helped it offset flagging sales at home.

Finance leaders from the G-20 industrial and emerging economies are meeting Friday and Saturday. The first G-20 finance meeting since President Trump was elected is likely to focus on concerns over protectionism and currencies.

The euro edged down to $1.0743 from $1.0749, and the British pound rose to $1.2396 from $1.2358. The dollar slipped to 112.70 Japanese yen from 113.26 yen.

Benchmark U.S. crude rose 3 cents to $48.78 a barrel. Brent crude, which is used to price international oils, rose 2 cents to $51.76 a barrel.

Natural gas increased 5 cents to $2.95 per 1,000 cubic feet. Wholesale gasoline rose less than a cent to $1.60 a gallon and heating oil rose less than a cent to $1.51 a gallon.

Gold climbed $3.10 to $1,230.20 an ounce. Silver increased 8 cents to $17.41 an ounce and copper rose 1 cent to $2.69 a pound.