U.S. Stocks Remain Mostly Up, Nasdaq Lower
NEW YORK (MarketWatch) -- U.S. stocks trimmed their advance Friday, with the Nasdaq shifting into negative territory as Dell Inc.'s warning about future growth weighed on technology stocks, offsetting investors' optimism about the likelihood of another interest-rate cut ahead.
Up more than 150 points shortly after the opening bell, the Dow Jones Industrial Average recently slipped back to a gain of 67.5 points at 13,379.2, with 20 of its 30 components higher, and financial stocks fronting the blue-chip advance, including JP Morgan Chase Co. , up 4.8%.
The S&P 500 rose 10.38 to 1,480.1, and the Nasdaq Composite fell 2.31 points to 2,665.82.
Volume on the New York Stock Exchange topped 658 million, with advancing stocks topping decliners nearly 3 to 1. On the Nasdaq, 1.1 billion shares traded, and advancing stocks outran decliners nearly 9 to 5.
On the New York Mercantile Exchange, crude-oil futures fell under pressure on speculation OPEC might increase production quotas next week, with the front contract recently down $1.78 at $89.23. .
Data dependent
Speaking Thursday evening in Charlotte, N.C., Federal Chairman Ben Bernanke said economic data in coming days would determine whether the Fed cuts rates for a third meeting straight on Dec. 11. .
"Bernanke hinted as much by placing significant emphasis on the recent deterioration in consumer spending and on signs of softening in labor market conditions, as well as financial conditions, which appear to have sealed the deal on a rate cut and raised the possibility of 50 basis point cut," said Tony Crescenzi, chief bond market strategist for Miller Tabak & Co.
On Friday, early data was viewed as furthering pressure on the Fed to cut rates for a third time this year when policymakers next meet Dec. 11. The Commerce Department reported growth in consumer spending flat-lined in October, and inflation eroded modest income gains. .
Other data had construction spending sliding 0.8% in October, while a measure of economic activity in the Chicago area expanded in November.
Shares of Countrywide Financial Corp. soared, recently up almost 15%, after reports the U.S. government and several top banks are nearing agreement on a plan to freeze resets on adjustable rate mortgages to avoid a flood of foreclosures.
Developments from the corporate front include word from struggling wireless-phone maker Motorola Inc. that its chief executive, Ed Zander, would resign Jan. 1 and be replaced by Greg Brown, its chief operating officer.
Dell Inc. shares fell sharply, lately down 14.3%, after the personal computer maker warned future earnings could be hurt by shifts in the market. .
Overseas
In Asia, stocks ended solidly higher , while European shares also posted strong gains .
By Kate Gibson