U.S. stocks were little changed, Friday, ending a range-bound session as investors digested the day's mixed earnings reports.
On one hand, positive earnings from JP Morgan (JPM) and Wells Fargo (WFC) contributed to the upside while a profit warning from UPS (UPS) pulled sentiment lower. At the same time, though, executives from two of America's largest banks -- JPM and WFC -- warned that mortgage lending could fall in the second half of 2013 if interest rates remain elevated.
Economic data released included a greater-than-expected 0.8% gain in the June producer price index, exceeding expectations looking for a 0.5% increase. But the rise was largely a result of a 2.9% spike in fuel prices last month. Excluding fuel and food, June PPI rose just 0.2%.
Consumer Sentiment
Also, Friday, the Reuters/University of Michigan preliminary survey of consumer sentiment dropped to 83.1 in July versus estimates of the index remaining unchanged at 84.1.
For the week, stocks finished higher with the major averages near their all-time highs, boosted by assurances by Federal Reserve Chairman Ben Bernanke the central bank would maintain its accommodative monetary policy over the near term. Minutes from the latest Federal Open Markets Committee meeting released Wednesday also showed that half of the Fed officials believe its current bond buying program will remain intact through 2013.
Commodities were mixed. August crude added 1%, Friday, to tally a weekly gain of 2.6%. Gold futures were down down 0.2% but finished the week with a 5.4% advance.
Here's Where The Markets Stood At Day's End
- Dow Jones Industrial Index was up 1.53 (+0.01%) to 15,462.45
- S&P 500 up +5.07 (+0.30%) to 1,680.09
- Nasdaq Composite Index up 21.78 (+0.61%) to 3,600.08
- FTSE 100 up 0.04%
- Hang Seng Index down 0.75%
- Shanghai China Composite Index down 1.62%
- (+) WEN, BMO Capital upgrade to Outperform; also raised its price target 17%.
- (+) ALNY, Piper Jaffray raised the price target for Alnylam by $18 after the company reported positive top-line results in early stage testing of ALN-TTRsc for the treatment of TTR mediated amyloidosis.
- (-) UPS, The shipping company cut its full-year outlook due to a slower economy and overcapacity in the global air freight market to $4.65-$4.85/share from $4.80-$5.06/share.
- (-) CERE, Disappointing earnings results in downgrades by Piper Jaffray and Raymond James.
- (-) BA, Fire Aboard Dreamliner
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