Strong company earnings lifted stocks on Wall Street on Friday, and investors saw a chance to add to their holdings after declines earlier in the week.
Nike reported a surge in quarterly profit, sending its stock price up 11 percent. Tiffany topped earnings predictions, helped by demand from customers in Asia.
Investors were also drawn by a pause in the market’s big run-up. The Standard Poor’s 500-stock index logged its second weekly decline of the year, despite Friday’s gains.
The damper stemmed partly from the struggles of Cyprus to devise a plan to avoid financial collapse. Stocks were also weighed down by weak sales from Oracle.
FedEx ended the week 10 percent lower after it reported a decline in quarterly profit and cut its annual earnings forecast on Wednesday. The company can be a gauge of the economy because many shoppers and businesses use its shipping services.
A resilient global economy has encouraged investors to pick up stocks on any dips, said Ron Florance, managing director of investment strategy at Wells Fargo’s Private Bank.
“We still have an astonishing amount of money sitting on the sidelines,” Mr. Florance said.
The Dow Jones industrial average rose 90.54 points, or 0.6 percent, to 14,512.03. The Standard Poor’s 500-stock index rose 11.09 points, or 0.7 percent, to 1,556.89. The Nasdaq composite gained 22.40 points, or 0.7 percent, to 3,245.
Nike shares hit a nominal high, rising $5.93, to $59.53, after the company reported a 55 percent increase in quarterly net income. Tiffany rose $1.32, or 1.9 percent, to $69.23 after posting strong fourth-quarter earnings.
The Dow shed a fraction of a percentage point this week. The S. P. 500 was 7 points, or 0.3 percent, lower than it was at the start of trading on Monday.
The S. P. index last logged a weekly decline Feb. 22, falling 0.3 percent after the release of minutes from the Federal Reserve’s January policy meeting. The minutes revealed disagreement over how long to keep buying bonds in an effort to support the economy.
Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, said the market run-up may slow as the Fed faces increasing pressure to end its stimulus program.
Interest rates were steady. The Treasury’s benchmark 10-year note fell 4/32, to 100 21/32, and the yield rose to 1.92 percent from 1.91 percent late Thursday.
Among other stocks making big moves on Friday were the chip maker Micron Technology, which rose 97 cents, or 10.7 percent, to $10.04 despite reporting a loss in its fiscal second-quarter on Thursday. The company said that revenue grew 3 percent, to $2.08 billion, better than analysts had expected.
Anacor Pharmaceuticals rose $1.24, or 25.6 percent, to $6.08 on Friday after reporting strong data from a midstage study of a potential chronic rash treatment.
Marin Software rose $2.26, or 16.1 percent, to $16.26 in its market debut. The company raised $105 million in its initial public offering of stock.
AK Steel Holding fell 16 cents, or 4.6 percent, to $3.31, after projecting a larger-than-expected first-quarter loss because a previously expected seasonal increase in the demand for steel did not materialize.
Article source: http://www.nytimes.com/2013/03/23/business/daily-stock-market-activity.html?partner=rss&emc=rss
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