Stocks Close Notably Higher Amid Dollar Weakness - U.S. Commentary

(RTTNews) - After ending the previous session mixed, stocks moved notably higher over the course of the trading day on Friday. With the gains on the day, the tech-heavy Nasdaq ended the session at its best closing level since early 2000.

The major averages gave back some ground going into the close but remained firmly positive. The Dow jumped 168.62 points or 0.9 percent to 18,127.65, the Nasdaq climbed 34.04 points or 0.7 percent to 5,026.42 and the S&P 500 advanced 18.79 points or 0.9 percent to 2,108.06.

For the week, the major averages all posted strong gains. The Nasdaq soared by 3.2 percent, while the S&P 500 surged up by 2.7 percent and the Dow jumped by 2.1 percent.

The strength on Wall Street was partly due to weakness in the value of the U.S. dollar, with the greenback sliding to $1.0810 versus the euro compared to yesterday's $1.0660.

The buck also fell to 120.08 yen compared to the 120.78 yen it fetched at the close of New York trading on Thursday.

The dollar has pulled back well of its recent highs amid indications that the Federal Reserve plans to raise interest rates more slowly than previously anticipated.

In the Fed forecasts released on Wednesday, the central bank said the median projection for the mid-point of the fed funds target range at the end of 2015 is now 0.625 percent compared to 1.125 percent in December.

The drop by the value of the dollar helped to drive commodities prices higher, leading to considerable strength among resource stocks.

Among individual stocks, shares of Nike (NKE) moved notably higher after the athletic equipment giant reported better than expected third quarter earnings.

Chinese travel booking site Ctrip (CTRP) also spiked higher after reporting better than expected fourth quarter results and providing upbeat revenue growth guidance for the first quarter.

On the other hand, shares of Tiffany (TIF) moved to the downside after the luxury jeweler reported an unexpected drop in fourth quarter sales.

Sector News

While most of the major sectors moved to the upside on the day, gold stocks posted particularly strong gains. Reflecting the strength in the gold sector, the NYSE Arca Gold Bugs Index surged up by 2.9 percent.

The strong gains by gold stocks came amid a notable increase by the price of the precious metal, with gold for April delivery climbing $15.60 to $1,184.60 an ounce.

Considerable strength also emerged among housing stocks, as reflected by the 1.6 percent gain posted by the Philadelphia Housing Sector Index. With the gain, the index reached its best closing level in almost eight years.

KB Home (KBH) helped to lead the housing sector higher, with the homebuilder soaring by 8.5 percent after reporting better than expected first quarter results.

Energy stocks also turned in a strong performance amid an increase by the price of crude oil. Crude for May delivery jumped $1.04 to $46.57 a barrel.

Notable strength was also visible among steel, commercial real estate, and computer hardware, reflecting broad based buying interest.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index rose by 0.4 percent, while Hong Kong's Hang Seng Index fell by 0.4 percent.

Meanwhile, the major European markets all moved to the upside on the day. While the U.K.'s FTSE 100 Index advanced by 0.9 percent, the French CAC 40 Index jumped by 1 percent and the German DAX Index surged up by 1.2 percent.

In the bond market, treasuries rebounded after turning lower over the course of the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dropped by 4.7 basis points to 1.93 percent.

Looking Ahead

While the outlook for interest rates is likely to remain on traders' minds, next week's trading may be driven by reaction to reports on consumer prices, durable goods orders, and new and existing home sales.