S&P 500 Sets Record Close Above 1,900 As Stocks Extend Uptrend - U.S. Commentary

(RTTNews) - Stocks moved mostly higher over the course of the trading day on Friday, extending the upward move seen in the two previous sessions. The gains on the helped lift the S&P 500 to a record closing high above 1,900 for the first time.

The major averages ended the day firmly in positive territory, near their highs for the session. The Dow rose 63.19 points or 0.4 percent to 16,606.27, the Nasdaq advanced 31.47 points or 0.8 percent to 4,185.81 and the S&P 500 climbed 8.04 points or 0.4 percent to 1,900.53.

With the gains over the past three-days, the major averages more than offset the pullback seen on Tuesday and closed higher for the week. The Nasdaq jumped 2.3 percent, while the S&P 500 surged up by 1.2 percent and the Dow advanced by 0.7 percent.

The continued strength on Wall Street partly reflected a positive reaction to earnings news from Hewlett-Packard (HPQ), with the tech giant jumping by 6.1 percent on the day.

After the close of trading on Thursday, HP reported second quarter earnings that were in line with estimates, although its revenues came in below expectations. The company also revealed plans to cut 16,000 more jobs.

Positive sentiment was also generated by the release of a report from the Commerce Department showing that new home sales came in above economist estimates in April.

The Commerce Department said new home sales jumped 6.4 percent to a seasonally adjusted annual rate of 433,000 in April from the revised March rate of 407,000. Economists had expected new home sales to climb to a rate of 420,000.

The revised rate for March reflects a substantial upward revision from the 384,000 originally reported, although it still represents a six-month low.

Among individual stocks, shares of Nordson (NDSN) moved sharply higher on the day after the company reported better than expected second quarter earnings.

Video game retailer GameStop (GME) also turned in a strong performance after reporting first quarter earnings that exceeded analyst estimates and providing upbeat guidance.

On the other hand, shares of Aeropostale (ARO) fell sharply after the apparel retailer forecast a wider than expected second quarter loss.

Sector News

Housing stocks turned in some of the market's best performances on the heels of the new home sales data, driving the Philadelphia Housing Sector Index up by 1.9 percent. With the gain, the index ended the session at its best closing level in over a month.

Within the housing sector, D.R. Horton (DHI) and Lennar (LEN) posted standout gains, advancing by 4.1 percent and 4 percent, respectively.

Significant strength was also visible among airline stocks, as reflected by the 1.3 percent gain posted by the NYSE Arca Airline Index. The gain extended a recent upward move by the index, which reached a twelve-year closing high.

Electronic storage, internet, and semiconductor stocks also saw considerable strength, helping to drive the tech-heavy Nasdaq notably higher.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index advanced by 0.9 percent, while Hong Kong's Hang Seng Index crept up by 0.1 percent.

Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index edged down by 0.1 percent, the French CAC 40 Index and the German DAX Index rose by 0.3 percent and 0.5 percent, respectively.

In the bond market, treasuries moved modestly higher following the pullback seen in the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, ticked up by 1.9 basis points to 2.536 percent.

Looking ahead

Following the long Memorial Day weekend, next week's trading could be impacted by the outcome of Greek and Ukrainian elections as well as reports on U.S. durable goods orders, consumer confidence, and personal income and spending.

On the earnings front, AutoZone (AZO), RadioShack (RSH), Toll Brothers (TOL), Abercrombie & Fitch (ANF), Costco (COST), and Big Lots (BIG) are among the companies due to report their quarterly results next week.