Updated from 4:16 p.m. EST
Stocks closed Friday much as they did Thursday - uneven with choppy trading all day. The session's mixed economic news and gangbuster earnings reports from two energy companies weren't enough to change overall investor apathy, which has largely prevailed since the end of Tuesday's big rally.
Dow Jones Industrial Average
closed up 0.2% to 9801.02, extending its winning streak to five days in a row. The
ended up by 0.4% to 1050.69 and the
was down 0.02% to 1932.21. The S&P continued its difficulties sustaining a move above the closely watched 1050 level, but it is now within 3 points of reaching its 52-week high of 1053.72.
All three indices made substantial gains in the last week, each boosted by the rally Tuesday. The Dow is up 218.56 points, or 2.3%, from last Friday's close of 9585.46, thanks in part to the Tuesday rally, which had added 140 points. The Nasdaq is now up 66.62 points, or 3.6%, from last week's close of 1865.59, and the S&P 500 has added 21.78 points, or 2.1%, from its close of 1028.91 last Friday.
Volume on Friday was 1.44 billion trades on the
New York Stock Exchange
, while 1.81 trades occurred on the Nasdaq.
In economic news, the October Chicago purchasing managers index was slightly below estimates at 55, but up from last month's 51.2. Elsewhere, the University of Michigan's consumer sentiment report was revised up to 89.6 vs. analysts' consensus of 89.5 and an initial reading of 89.4.
Earlier Friday, the Commerce Department said personal income rose 0.3% in September while the August increase was revised to 0.3%. Analysts had been expecting a rise of 0.2%. Personal spending, however, declined 0.3%, a greater-than-expected drop, although August's figure was revised up to a rise of 1.1%. The nation's savings rate fell to 2.9%, its lowest level since December 2001.
"The markets seem to be saying 'tell me something I don't know,'" said Paul Nolte, director of investments at Hinsdale & Assoc. He said he's been surprised lately that the major indices seem to discount seemingly good economic news, such as Thursday's surge in gross domestic product figures.
As a result, investors are trying to figure out what's next for the economy. "A lot of people are left scratching their heads, while the markets are churning around and not making moves," said Nolte.
Stocks could also be moving modestly because the money supply is dwindling, Nolte believes, as seen by the slowdown in today's consumer spending number.
But Nolte's biggest worry of late is trading volume. "We haven't seen big volumes on up days, it's been mostly on down days," he said. This has been a trend for the past couple months and signifies that investors are taking profits and not putting new money into the market.
The dollar was higher vs. the Japanese yen. The 10-year Treasury note was recently up 13/32 to yield 4.29%.
In the earnings spotlight were two big oil companies. One,
said it earned $1.46 a share in the third quarter, excluding items, easily beating analysts' estimates of $1.20 a share. Revenue rose to $1.34 billion from $1.24 billion last year. The company guided its fourth-quarter earnings to $1.10 a share, which is below the Thomson First Call consensus of $1.18 a share. For full-year 2003, the company expects to earn $5 a share compared to analysts' estimates of $5.05 a share.
Additionally, Anadarko said it boosted its quarterly dividend by 40%. Shares closed up 1.8% at $43.62.
reported a third-quarter profit of $1.86 a share on operating earnings, compared to analysts' expectations of $1.62 a share. Sales were $3 billion. Its stock rose 3.5% at $74.30.
The energy sector gained momentum after Anadarko's and Chevron's results.
was up 2.2% at $23.88,
ended 1.9% higher at $28.26 and
added 0.7% at $36.58.
But the semiconductor industry underperformed in the session.
fell 2% to $28.92,
fell 1.9% to $40.63 and
ended 1.5% lower at $17.68.
was one of the biggest decliners of the day, dropping 15% to $2.03. The company reported a narrowed third-quarter loss but still fell short of estimates. The company said it hired an investment bank to explore alternatives, including a possible sale. The Internet software company saw revenue fall dramatically, sliding to $5.7 million from $26.4 million the year before.
shares jumped 18% after the company said third-quarter income from continuing operations was $1.45 a share, compared to analysts' consensus of $1.17 a share. Sales, however, were down 6% at $4.77 billion, the company said.
The company was also upgraded to buy from hold with a $61 price target at Citigroup Smith Barney. Shares ended up $9.08 at $57.05.
reported third-quarter earnings of 4 cents a share, ahead of Wall Street's consensus of 2 cents a share. Sales rose 22% to $287.3 million. The company also said it expects full-year 2004 earnings of $2.70 to $2.85 a share vs. the consensus of $2.89 a share. The stock was up 0.9% at $40.45.
In analyst actions,
was upgraded at Legg Mason because of its proposed acquisition by
Bank of America
, which was announced Monday. Shares of FleetBoston ended up 0.7% at $40.39, while shares of BAC were up 0.7% at $75.73.
Morgan Stanley also upgraded
, saying the company has seen the worst of its operational weakness. Shares of Duke closed up 1.2% at $18.15.
Overseas markets were mixed, with London's FTSE 100 down 0.3% to 4288 and Germany's Xetra DAX up 0.5% to 3656. In Asia, Japan's Nikkei finished down 1.3% to 10,560, while Hong Kong's Hang Seng added 0.4% to 12,190.