U.S. stocks extended climb

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U.S. markets posted a narrow gain on Friday, bumping higher to weekly modest gains as tech companies’ earning boosted sentiment. However, investors still worried about the economic data.


The Dow Jones Industrial Average added 0.12% to 10,607.85, climbing for three consecutive weeks with additional 1.4% in the previous week. The Standard & Poor\'s 500-share index advanced 0.08% to 1,125.59, ending higher for a third straight week. Of all, Nasdaq Composite performed best, with eight straight sessions of gaining.


Crude oil declined while the U.S dollar appreciated against the yen and the euro.


Consumer sentiment on U.S. economic data did not meet economists’ expectations. Investors’ slowly mounting optimism is attributed to concerns on U.S. economy.


Financials did not join the rally, lagging Friday as worries remained towards the health of European banking system and global forex rate tensions. J.P. Morgan Chase & Co slipped 2.3%, Morgan Stanley and Bank of America Corp. sled 1.2% and 1.1% respectively.


Energy stocks also lagged, leading by Massey Energy (NYSE: MEE). Shares of this coal extractor sled 7.6%, following that the company expected its 2010 operating results to be at the low end of its previous projections.


Investors were careful about their investment by continuing to buy safe-haven assets like Treasurys and gold. The yield on the benchmark 10-year note declined to 2.74% on Friday while gold settled at a high record. The increase of gold price was boosted by additional concerns about the global currencies, European banking system, and talk of further easing of monetary policy.


Tech shares outperformed. Chipmaker Texas Instruments advanced 3%, following its plan to buy back $7.5 billion worth of its shares and put its quarterly dividend higher.


Enterprise software developer Oracle Corp (NASDAQ: ORCL) added 8.4%. Developer of the BlackBerry smartphone Research In Motion Ltd. (TSX: RIM, NASDAQ: RIMM) was up after the BlackBerry maker reported its gain in fiscal second quarter profit and revenue.


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Zidane Randall has 409 articles online and 14 fans

Economics is the study of our lives,our jobs, our homes, our families and the little decisions we face every day. Thus, I am keen on reading and studying economic issues.

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U.S. stocks extended climb

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This article was published on 2010/09/20