U.S. Stocks Lifted As Nike, Oracle Earnings Top Estimates
NEW YORK (MarketWatch) -- U.S. stocks climbed Friday, with positive earnings from Oracle Corp. and Nike Inc. helping set a positive tone in what could prove to be a volatile session as key futures and options contracts expire.
"It's all about options expiration and good corporate news. We also have a long list of federal governors speaking, so I suspect the market will have an ear glued to what the Feds may or may not say," said Peter Cardillo, chief market economist at Avalon Partners.
The Dow Jones Industrial Average gained 92.5 points to 13,859.0, with 26 of its 30 components ahead, led by Walt Disney Co. , up 2.2%.
Home Depot Inc. and American Express Co. fronted the Dow's declines, with Home Depot's share dropping 1.2% and AmEx falling 0.3%.
The broader indexes also gained, with the S&P 500 rising 10.44 points to 1,529.19 and the Nasdaq Composite climbing 20.68 points to 2,674.67.
Volume hit 1.1 billion shares at the New York Stock Exchange, and advancing stocks outran decliners 2 to 1. At the Nasdaq, 1.2 billion shares were exchanged, and advancing issues beat decliners 8 to 5.
Tech talk
Technology stocks were among those advancing early on, with business-software maker Oracle gaining 4.3% after reporting a 25% rise in profits, topping expectations. UBS lifted Oracle's price target to $25 from $24.
In other corporate news, Nike also topped estimates, with the globe's biggest athletic shoe and apparel maker reporting a 51% rise in profit. . Nike shares climbed 0.6%. .
Texas Instruments Inc. climbed 3.1% after disclosing plans for a $5 billion stock buyback. .
Dow component Exxon Mobil Corp. late Thursday said it evacuated about 200 workers from the Gulf of Mexico due to a tropical disturbance. Its stock was up 1.2%.
Shares of Masco Corp. are likely to see pressure after the Taylor, Mich., manufacturer cut its projected earnings for the year.
Wells Fargo & Co. fell 0.5% after its downgrade by Merrill Lynch to neutral from buy, with the broker citing the bank's rising credit losses and its stock's recent outperformance.
Fed focus
In a speeches delivered Friday in Frankfurt, Germany, Federal Reserve Governor Frederic Mishkin said policymakers must at times rely on "informed guesses about how the economy will evolve," while Fed Vice Chairman Donald Kohn dismissed the notion of central bankers trying to spare investors the consequences of poor bets, saying Fed officials remain focused on the economy as a whole. .
Other markets
An the New York Mercantile Exchange, crude-oil futures fell, a pause for the benchmark contract after surging to another record the previous day. Crude for November deliver dropped 16 cents a barrel. .
Elsewhere on the NYME, gold futures edged higher after hitting a new 27-year high in electronic trading. Gold for December delivery gained 10 cents at $740.00 an ounce. .
While hitting highs unseen since 1980, gold prices may be in for a correction, before climbing still higher, analysts say. Read
The dollar recouped some of its recent losses against the yen, but stayed under pressure against some of its other major counterparts. The greenback recently traded at 115.42 yen, compared with 114.40 yen late Thursday. The euro was mildly higher at $1.4091, compared with $4.4068 late Thursday. Read .
Treasurys rose, sending yields lower, as Fed officials hammered home the message that the central bank's rate cut on Tuesday did not signal a willingness to bail out investors. The benchmark 10 year note was up 13/32 at 100 26/32, its yield slipping to 4.648%. .
Overseas
In London, the FTSE 100 index gained 0.4%, or 42.70 points, to 6,452.70, with other European shares also advancing. .
Asian stocks ended on a mixed note, with a stronger yen keeping export-oriented shares in check in Tokyo, but Hong Kong overcame early weakness to nd at a record high for a third session straight. .
By Kate Gibson