U.S. stocks finished higher, posting their fourth consecutive weekly gain, boosted by a rise in consumer attitudes and a much larger-than-expected increase in an index of leading economic indicators.
U.S. consumer sentiment rebounded in early May, with the preliminary reading of the Thomson Reuters/University of Michigan index on consumer sentiment rising to 83.7 from a 76.4 score in April, topping economists' expectations for a 78 reading. It was the highest level for the index since July 2007.
The Conference Board's index of leading indicators jumped 0.6% in April, following a 0.2% decline in March. Economists polled by MarketWatch had forecast a 0.3 increase. Seven of the 10 components of the index expanded, led by housing permits.
Overseas, European markets finished higher, as data showing the European Union market for new passenger cars in April expanded for the first time since September 2011, sparked sentiment that the region's economy may finally be improving.
Commodities finished mixed. A climbing U.S. dollar caused gold to post its seventh down session, shedding $22.20 to finish at $1,364.70 an ounce. Oil futures, meanwhile, were boosted by the strong economic data and rose $0.86 to settle at $96.02 a barrel on the New York Mercantile Exchange.
Here's Where The U.S. Markets Stood At Day's End
- Dow Jones Industrial Average up 121.18 (+0.80%) to 15,354.40
- S&P 500 up 15.65 (+0.95%) to 1,666.12
- Nasdaq Composite Index up 33.73 (+0.97%) to 3,498.97
- Nikkei 225 Index up 0.67%
- Hang Seng Index up 0.17%
- Shanghai China Composite Index up 1.38%
- FTSE 100 Index up 0.42%
- (+) JRCC, Executed privately negotiated agreements to exchange a total of $243.4 mln of existing senior convertible notes for 123.3 mln of new senior convertible notes. The new five-year senior notes carry a 10% coupon and will convert into stock at $5 per share.
- (+) MHGC, Twice rejected $7.50 per share buyout offer from the Yucaipa Cos. - the latest received in February - with the hotel co13.0mpany's board concluding the offer "was not sufficiently attractive" to begin formal talks.
- (+) VSAT, Reported non-GAAP Q4 earnings of $0.19 per share, turning around a $0.01 per share net loss a year ago and beating analyst estimates by $0.16. Net sales rise 28.3% year over year to $308.7 mln, also topping estimates by $18.66 mln.
- (-) ARUN, Reported fiscal Q3 earnings of $0.11 per share, $0.01 worse than the Capital IQ consensus. Revenue rises 11.5% year over year to $147.1 mln, topping estimates by $930,000.
- (-) ADSK, Posts Q1 EPS of $0.42, down from $0.47 per share a year ago and missing analyst estimates by $0.03 per share. Sales declined 3.1% to $570.4 million, also trailing expectations by $5.2 mln.
- (-) YOKU, Recorded Q1 net loss of $0.23 per ADS, trailing analyst forecasts by $0.03 per share. Revenue of $83.1 mln beat estimates by around $900,000. Earlier Friday, HSBC upgrades the stock to an Overweight rating, up from Neutral. The research shop also raised its price target for YOKU shares by $9 to $30 a share.
- (-) KWK, Will be dropped from the S&P MidCap 400, effective after the close of trading next Thursday, May 23, and will be replaced by WhiteWave Foods (WWAV), following its spin-off from Dean Foods (DF).
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