U.S. stocks ended higher Friday, as stronger-than-estimated earnings at two big technology companies bolstered hopes of an economic rebound. However, a weakness in consumer-staples stocks limited the market’s advance as the day witnessed frenetic trading due to the expiry of several types of options and contracts.
The expiry of number of options and contracts simultaneously, a quarterly phenomenon known as quadruple witching, saw a record 3.15 billion shares exchange hands on the New York Stock Exchange.
This morning’s stock futures are pointing to a higher opening on Wall Street, following gains in major markets overseas. Expectations are trading will remain light during this holiday-shortened week. Dow Jones industrial average futures are up 40 points, or 0.4%, to 10,311. Standard & Poor’s 500 index futures are up 5.60 points, or 0.5%, to 1,103.30, while Nasdaq 100 index futures are up 10.25 points, or 0.6%, to 1,817.25.
The S&P 500 advanced 0.6% to 1,102.39. The Dow Jones industrial average rose 20.63 points, or 0.2%, to 10,328.89 and the tech-heavy Nasdaq Composite Index jumped 1.5% to 2,211.69. For the week, the S&P 500 retreated 0.4%, while the Dow average lost 1.4%. On the New York Stock Exchange three stocks advanced for every two that fell in price. The market’s measure of volatility, the CBOE Vix, dropped 3.7% to 21.68.
Oracle (NASDAQ:ORCL) shares jumped 6.4% after the company reported earnings of 36 cents a share that were above Street expectations. Blackberry maker Research in Motion (NASDAQ:RIMM) shares closed 10.3% higher after the company reported strong third-quarter earnings on the back of improved sales of its Curve smartphone, and raised its fourth-quarter forecast.
Meanwhile, the US dollar remained near its three-month highs against a basket of major currencies, riding high on its safe haven appeal given the ongoing debt problems in Greece and Dubai. Today Dubai World is expected to formally request a payment standstill on its loans.
Oil and gas sector shares also notched up gains during the week, up 0.9% as a show-off between Iran and Iraq over disputed oilfield became imminent. Although efforts are on to diffuse the situation through diplomatic channels, crude price volatility is likely this week with the OPEC scheduled to meet in Luanda, Monday’s rollover of crude’s current futures contract, and anticipation of the Department of Energy’s release of inventory data following the prior week’s 3.689 million barrel drop, which sent supplies to their lowest levels since January 9.
The healthcare sector, which slipped 0.1% last week, may witness increased trading interest this week after the healthcare legislation backed by President Obama received the green signal from the Senate in the early hours this morning.
