Stocks Move Mostly Higher, Dow And S&P 500 Reach New Highs - U.S. Commentary

(RTTNews) - Stocks moved mostly higher over the course of the trading day on Friday, extending the upward move seen in the previous session. With the gains, the Dow and the S&P 500 reached new record closing highs above 16,000 and 1,800, respectively.

The major averages saw further upside going into the close, ending the session at their best levels of the day. The Dow rose 54.78 points or 0.3 percent to 16,064.77, the Nasdaq advanced 22.49 points or 0.6 percent to 3,991.65 and the S&P 500 climbed 8.91 points or 0.5 percent to 1,804.76.

For the week, the major averages all moved to the upside, although the Nasdaq inched up only 0.1 percent. The Dow and the S&P 500 rose by 0.6 percent and 0.4 percent, respectively.

The strength that emerged on Wall Street was partly in reaction to a recent batch of largely upbeat U.S. economic data.

The data has added to speculation that the Federal Reserve could begin scaling back its asset purchase program in the near future, although traders seem optimistic that the economy is strong enough to withstand tapering by the central bank.

Nonetheless, trading activity was somewhat subdued amid a lack of major U.S. economic data following the slew of economic reports released over the two previous days.

Uncertainty about the near-term outlook for the markets also kept some traders on the sidelines, as the Dow and the S&P 500 have both crossed key psychological levels.

Among individual stocks, shares of Time Warner Cable (TWC) moved sharply higher on the day after CNBC reported that Comcast (CMCSA) is seeking advice on possible regulatory hurdles if it pursues a bid for the cable company.

Chipmaker Marvell Technology (MRVL) also turned in a strong performance after reporting better than expected third quarter results and providing upbeat fourth quarter guidance.

On the other hand, shares of Intel (INTC) came under pressure after ending the previous session sharply higher. Intel fell by 5.4 percent, pulling back off yesterday's five-month closing high.

The pullback by Intel came after CEO Brian Krzanich said he expects 2014 sales to be roughly flat year-over-year at the semiconductor giant's annual investor meeting.

Sector News

Airline stocks turned in some of the best performances on the day, driving the NYSE Arca Airline Index up by 1.7 percent. With the gain, the index ended the session at its best closing level in ten years.

Within the airline sector, shares of United Continental (UAL) jumped 3.9 percent after Goldman Sachs upgraded its rating on the airline to Buy from Neutral.

Extending a recent upward trend, biotechnology stocks also moved notably higher. The NYSE Arca Biotechnology Index advanced by 1.7 percent to a new record high.

Biogen Idec (BIIB) helped lead the biotech sector higher, surging up by 13.2 percent on news that European regulators designated its multiple sclerosis drug Tecfidera as a "new active substance," providing 10 years of regulatory exclusivity.

Healthcare, telecom, and defense stocks also saw notable strength on the day, moving higher along with most of the other major sectors.

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 inched up by 0.1 percent, while China's Shanghai Composite Index fell by 0.4 percent.

The major European markets also ended the day mixed. While the U.K.'s FTSE 100 Index edged down by 0.1 percent, the French CAC 40 Index advanced by 0.6 percent and the German DAX Index rose by 0.3 percent.

In the bond market, treasuries saw some further upside after turning higher over the course of the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.2 basis points to 2.752 percent.

Looking Ahead

Several key economic reports are scheduled to be released next week, although trading activity may be somewhat subdued as a result of the Thanksgiving Day holiday on Thursday.

Nonetheless, reports on housing starts, durable goods, pending home sales, and consumer confidence are still likely to attract some attention.

On the earnings front, Hewlett-Packard (HPQ), Tiffany (TIF), and Analog Devices (ADI) are among the companies due to report their quarterly results next week.