Stocks Close Higher Following Recent Losing Streak - U.S. Commentary

(RTTNews) - Stocks fluctuated throughout much of the trading session on Friday but managed to end the day on the upside due to some late-day buying interest. The gains on the day partly offset the losses posted in the four previous sessions.

The major averages ended the day in positive territory, breaking their recent losing streak. The Dow rose 34.43 points or 0.2 percent to 17,712.66, the Nasdaq climbed 27.86 points or 0.6 percent to 4,891.22 and the S&P 500 edged up 4.87 points or 0.2 percent to 2,061.02.

Despite the gains on the day, however, the major averages all moved notably lower for the week. The Nasdaq plunged by 2.7 percent, while the Dow and the S&P 500 tumbled by 2.3 percent and 2.2 percent, respectively.

The higher close on Wall Street was partly due to a positive reaction to prepared remarks by Federal Reserve Chair Janet Yellen.

In a speech at a San Francisco Fed conference, Yellen said an interest rate hike may well be warranted later this year but stressed that any increase in interest rates would be gradual.

The Fed Chief also suggested that further signs of weakness by inflation measures could impact the Fed's comfortably in raising rates.

Yellen reiterated that the central bank's monetary policy is data dependent and noted that the policy will evolve as economic conditions evolve.

Earlier in the day, traders were presented with a report a report from the Commerce Department showing that U.S. economic growth in the fourth quarter of 2014 was unrevised.

The report said gross domestic product increased by 2.2 percent in the fourth quarter, unchanged from the growth estimated last month.

Economists had been expecting the pace of GDP growth to be upwardly revised to 2.4 percent, which would still reflect a notable slowdown from the 5.0 percent growth seen in the third quarter.

Meanwhile, the University of Michigan released a separate report showing that consumer sentiment deteriorated by less than initially estimated in March.

The report showed that the final reading on the consumer sentiment index for March came in at 93.0 compared to the mid-month reading of 91.2.

The final reading came in above economist estimates for 92.1 but was still below the final February reading of 95.4.

Sector News

After turning in some of the market's worst performances over the past week, semiconductor and biotechnology stocks showed strong moves back to the upside on the day.

The Philadelphia Semiconductor Index and the NYSE Arca Biotechnology Index surged up by 2.8 percent and 2.6 percent, respectively, although both remain well off their recent highs.

Considerable strength was also visible among airline stocks, as reflected by the 2.2 percent gain posted by the NYSE Arca Airline Index. JetBlue (JBLU), Spirit Airlines (SAVE) and United Continental (UAL) posted standout gains.

Tobacco, housing, and healthcare stocks also moved notably higher on the day, while significant weakness was visible among steel, electronic storage, and energy stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index slumped by 1 percent, while China's Shanghai Composite Index rose by 0.2 percent.

The major European markets also ended the day mixed. While the U.K.'s FTSE 100 Index fell by 0.6 percent, the German DAX Index edged up by 0.2 percent and the French CAC 40 Index advanced by 0.6 percent.

In the bond market, treasuries moved back to the upside after moving lower over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dropped by 5.9 basis points to 1.948 percent.

Looking Ahead

Employment is likely to move back into the spotlight next week, as the Labor Department is scheduled to release its closely watched monthly jobs report next Friday.

Ahead of the jobs data, trading could be impact by the release of reports on manufacturing activity, pending home sales and personal income and spending.