Stocks Close Mostly Higher But Dow Dips Slightly - U.S. Commentary

(RTTNews) - While buying interest was somewhat subdued, stocks managed to end Friday's trading mostly higher. With the gains on the day, the tech-heavy Nasdaq reached a new record closing high.

The Nasdaq climbed 26.63 points or 0.5 percent to 5,574.12, and the S&P 500 rose 4.20 points or 0.2 percent to 2,274.63. However, the Dow closed slightly lower, edging down 5.27 points or less than a tenth of a percent to 19,885.73.

The major averages also turned in a mixed performance for the week. While the Nasdaq jumped by 1 percent, the Dow fell by 0.4 percent and the S&P 500 dipped by 0.1 percent.

The mostly higher close on Wall Street came as traders digested earnings news from several financial giants as well as some key economic data.

Before the start of trading, JPMorgan Chase (JPM) reported fourth quarter results that exceeded expectations on both the top and bottom lines.

Bank of America (BAC) reported fourth quarter earnings that came in above analyst estimates, although its revenues for the quarter came in slightly below expectations.

Wells Fargo (WFC) reported fourth quarter earnings that fell to $0.96 per share from $1.00 per share a year ago. The company reported adjusted earnings of $1.03 per share.

On the economic front, the Commerce Department released a report showing that retail sales rose by slightly less than expected in the month of December.

The Commerce Department said retail sales climbed by 0.6 percent in December after edging up by a revised 0.2 percent in November. Economists had expected retail sales to increase by 0.7 percent.

Excluding auto sales, retail sales inched up by 0.2 percent in December after rising by 0.3 percent in November. Ex-auto sales had been expected to climb by 0.5 percent.

A separate report from the Labor Department showed that producer price growth came in line with economist estimates in December.

The Labor Department said its producer price index for final demand rose by 0.3 percent in December after climbing by 0.4 percent in November.

Excluding food and energy prices, core producer prices edged up by 0.2 percent in December after rising by 0.4 percent in November. Core prices had been expected to inch up by 0.1 percent.

The University of Michigan also released a report showing that its consumer sentiment index unexpectedly edged down to 98.1 in January from 98.2 in December.

Most of the major sectors showed relatively modest moves on the day, although oil service stocks moved lower along with the price of crude oil.

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 climbed by 0.8 percent, while China's Shanghai Composite Index dipped by 0.2 percent.

Meanwhile, the major European markets all moved to the upside on the day. While the French CAC 40 Index surged up by 1.2 percent, the German DAX Index advanced by 0.9 percent and the U.K.'s FTSE 100 Index rose by 0.6 percent.

In the bond market, treasuries climbed well off their worst levels of the day but still closed modestly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 1.9 basis points to 2.380 percent.

Looking Ahead

Following the long weekend, earnings season will start to pick up steam next, with Morgan Stanley (MS), Citigroup (C), Goldman Sachs (GS), American Express (AXP), IBM (IBM), and General Electric (GE) among a slew of companies due to report their quarterly results.

Reports on industrial production, consumer prices, housing starts, and regional manufacturing activity may also attract attention next week.

Additionally, the Federal Reserve is scheduled to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts, which may shed some light on the outlook for interest rates.