With upbeat corporate news offsetting economic concerns and uncertainty about the debt limit, stocks moved mostly higher over the course of the trading day on Friday. While buying interest waned in mid-day trading, the markets benefited from some late-day strength.
Natural gas stocks moved sharply higher on the day on the heels of news that Petrohawk (HK) agreed to be acquired by BHP Billiton (BHP) for approximately $12.1 billion in cash. The NYSE Arca Natural Gas Index surged up by 3.6 percent, climbing back near the one-month closing high it set last Thursday.
Oil service stocks also showed a strong upward move over the course of the trading session, benefiting from a notable increase by the price of crude oil. With crude for August delivery climbing $1.55 to $97.24 a barrel, the Philadelphia Oil Service Index rose by 2.6 percent.
Internet, commercial real estate, and gold stocks also saw considerable strength, with the gains by gold stocks coming amid a modest increase by the price of the precious metal.
On the other hand, notable weakness remained visible among airline and defense stocks, partly offsetting the aforementioned gains. FLIR Systems (FLIR) helped to lead the defense sector lower after providing disappointing second quarter guidance.
The major averages all closed firmly in positive territory, although the tech-heavy Nasdaq outperformed its counterparts. The Dow rose 42.61 points or 0.3 percent to 12,479.73, the Nasdaq jumped 27.13 points or 0.1 percent to 2,789.80 and the S&P 500 climbed 7.27 points or 0.6 percent to 1,316.14.
Despite the gains on the day, the major averages all closed lower for the week. The Dow fell by 1.4 percent for the week, while the Nasdaq and the S&P 500 dropped by 2.4 percent and 2.1 percent, respectively.
Commodity, Currency Markets
Crude oil futures are rising $0.48 to $96.17 a barrel after moving down $2.36 to $95.69 a barrel on Thursday. Gold futures are currently slipping $3.40 to $1,585.90 an ounce. In the previous session, the precious metal rose $3.80 to $1,589.30 an ounce.
Among currencies, the U.S. dollar is trading at 79.174 yen compared to the 79.1405 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.4118 compared to yesterday’s $1.414
Asia
The major Asian markets closed Friday’s session on a mixed note, with the Japanese, Chinese, Indonesian, South Korean and Taiwanese markets advancing in the session, while the Australian, Hong Kong, Singaporean, New Zealand, Malaysian and Indian markets declined. The markets in the region apparently took the S&P announcement in stride.
Japan’s Nikkei 225 average held mostly above the unchanged line throughout the session amid some volatility before closing higher. The index ended up 38.35 points or 0.39 percent at 9,975.
Export-dependent stocks advanced as the yen weakened amid speculation that the Japanese central bank may intervene in the market after the domestic currency strengthened to a 4-month high yesterday. Meanwhile, utility, oil and financial stocks lost ground. Okuma, Jtext and Tosoh advanced strongly, while Unitika and Sojitz were among the worst decliners.
Australia’s All Ordinaries languished below the unchanged throughout the session before closing down 18.60 points or 0.41 percent at 4,543. Most sectors, barring defensive telecom, consumer staple and real estate stocks, came under selling pressure, with the negativity more marked in the material and energy spaces.
Hong Kong’s Hang Seng Index also stayed below the unchanged line despite a brief resurgence in late morning trading. At the close of trading, the index was down 96.83 points or 0.44 percent at 21,843. Property and China-related stocks served as drags, while strength in Hong Kong-based financial and utility stocks helped limit the losses.
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