By Victor Reklaitis and Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks edged higher Friday,
staying on track for weekly gains and lifting the S&P 500 above
its prior record close.
A report showing a stronger-than-expected rebound in U.S.
new-home sales boosted sentiment, and Hewlett-Packard Co. and
GameStop Corp. surged after their quarterly earnings reports to
lead the S&P 500.
The benchmark (SPX) was last up 7 points, or 0.4%, to 1,899.56,
putting it on pace for a weekly advance of 1.2%. The S&P 500
has moved above its May 13 record close of 1,897.45, and neared its
intraday record of 1,902.17.
The Dow Jones Industrial Average (DJI) tacked on 53 points, or
0.3%, to 16,596.02. The blue-chip index is on track for a weekly
rise of 0.6%.
The Nasdaq Composite (RIXF) gained 21, or 0.5%, to 4,175.22. The
tech-laden index is set for a weekly jump of 2.1%.
The Russell 2000 index (RUT) of small stocks added 9.6 points,
or 0.9%, to 1,123.47 and on track to gains 1.9% over the week.
Sales of new single-family homes rose 6.4% to 433,000 last
month, led by the South and Midwest, the government reported
Friday. Economists polled by MarketWatch had expected an April
sales pace of 429,000.
Colin Cieszynski, senior analyst at CMC Markets, predicted a
relatively quiet end to the week, as investors look ahead to
Memorial Day weekend.
"Stock markets around the world are trading flat to slightly
higher to wrap up the week," he wrote in emailed comments early
Friday.
"It's a long weekend in the U.S. and U.K. and with news flow
relatively quiet, traders appear to be squaring positions and
heading off in an upbeat mood."
While the S&P 500 is trading around record levels,
Cieszynski on Friday doesn't see the benchmark making a powerful
move higher. The S&P 500 is "trading near the top of its
1,820-1,900 channel," but it "may not have enough oomph to push
through," he said.
"If the S&P 500 closes above 1,900 it would be very
significant, but we still maintain our view that a correction this
summer is highly likely," said Uri Landesman, president of Platinum
Partners hedge fund.
"Stocks are not discounting bad news that may happen
unexpectedly. The 10-year Treasury yields at such low levels is a
reflection on the state of other asset classes, people are willing
to hold bonds which pay very little," he added.
On the earnings front, GameStop Corp.'s(GME) stock was last up
4.6% after the retailer reported gains in profit and revenue late
Thursday.
Hewlett-Packard Co.(HPQ) was last up 6.1% after its quarterly
report and announcement of more job cuts. (Read more: GameStop,
Foot Locker rise; Aéropostale slumps
http://www.marketwatch.com/story/gamestop-foot-locker-rise-aeropostale-slumps-2014-05-23.)
European and Asian stocks are higher
European shares ended a volatile day on an upbeat note on Friday
after U.S. housing data spurred a positive mood on both sides of
the Atlantic, while a fall in German business confidence prompted
investors to assess the chances of action by the European Central
Bank. Stocks closed higher across Asia, with the Nikkei Average's
rise of 0.9% adding to its 2.1% gain on Thursday.
Gold futures for June delivery (GCM4) slipped, while crude oil
for July delivery (CLN4) inched higher. The dollar moved higher
against the euro (EURUSD) after the German Ifo business-confidence
report missed expectations.
More must-reads from MarketWatch:
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