U.S. stocks dip on Intel, GE; tech gains for week «
U.S. stocks closed generally lower on Friday as disappointing results from Intel Corp. and General Electric Co. weighed on sentiment. But a run in tech stocks, and a Friday lift in financials, helped two benchmarks to weekly gains.
The S&P 500 /quotes/zigman/3870025/realtime SPX -0.39% closed 7.19 points, or 0.4% lower at 1,838.70 and lost 0.2% over the week, with those losses limited by a 1.4% weekly rally in tech stocks. The Nasdaq Composite /quotes/zigman/12633936/realtime COMP -0.50% closed down 21.11 points, or 0.5%, to 4,197.58 but rose 0.5% higher over the week. The technology-heavy index is the only one of the three with year-to-date gains.
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The Dow Jones Industrial Average /quotes/zigman/627449/realtime DJIA +0.25% bucked the trend and closed higher Friday, thanks primarily to gains in American Express Co. and Visa Inc. The blue-chip index added 41.55 points, or 0.3%, to 16,458.56 and eked out a 0.1% gain over the week, its first weekly gain this year.
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/conga/story/misc/earnings_wall_threewide.html 293774 Chris Bouffard, chief investment officer at the Mutual Fund Store, said that it is not surprising to see a little consolidation.
“Markets rallied late last year in anticipation of economic growth, but now are taking a step back and digesting some of the mixed economic news. For example, last week’s jobs numbers were puzzling, while the rest of the picture is mostly in line with forecasts. We do expect a pullback or a moderate correction at some point this year, but do not think it will be a drastic one,” Bouffard said.
Consumer sentiment as measured by the University of Michigan and Thomson Reuters declined in January, falling to a reading of 80.4 from 82.5 in December, according to news reports. That’s also below the 84 expected in a MarketWatch-compiled economist poll. Earlier, government data showed that construction on new U.S. homes as well as building permits fell in December, pulling back after a surge in November, while industrial production ticked up a notch. But the number of new job openings reached 4 million, the highest level in five years, according to the Labor Department.
United Parcel Service Inc. /quotes/zigman/251269/delayed/quotes/nls/ups UPS +0.23% shares fell sharply after the firm cut its guidance for 2013, citing an “unprecedented” rise of online shopping, including “a surge in last-minute orders” during the shortened holiday shopping season. However, by the close, shares trimmed losses and were 0.5% down.
An earnings miss as well as disappointing revenue outlook from Intel Corp. /quotes/zigman/20392/delayed/quotes/nls/intc INTC -0.04% late Thursday sent its shares down 2.6%.
Click to Play Europe’s week ahead: PMIs, U.K. unemploymentEuro-zone PMIs are expected to show continued national divergence, with growth for Germany, but a deeper decline in France’s manufacturing sector. U.K. monetary policy will also be on the agenda with the release of BOE minutes and unemployment data.
General Electric Co. /quotes/zigman/227468/delayed/quotes/nls/ge GE -0.04% reported fourth-quarter results before the bell which met forecasts from analysts polled by FactSet. But the shares fell 2.3% on concerns over the lower level of GE Capital dividend payouts.
American Express Co. /quotes/zigman/217470/delayed/quotes/nls/axp AXP -0.35% shares gained 3.6% after the credit card company said its fourth-quarter earnings more than doubled. Shares in rival Visa Inc. /quotes/zigman/502306/delayed/quotes/nls/v V -0.02% rose 4.7%
Morgan Stanley /quotes/zigman/182639/delayed/quotes/nls/ms MS +4.38% shares were up 4.4% after the investment bank reported its fourth-quarter earnings, which showed strong performance in wealth management, though it was offset by weaker fixed-income trading results.
Electronic Arts Inc. /quotes/zigman/71356/delayed/quotes/nls/ea EA +11.88% shares surged 12% after CRT Capital initiated coverage of the company with a buy rating , according to Analyst Ratings Network.
In other markets, European stocks made strong weekly gains, while the week ended on a mixed note for Asian markets . Gold prices climbed and oil futures closed at a two-week high, while the dollar gained against most rivals on economic data.