By Anora Mahmudova and Sara Sjolin, MarketWatch
Major indexes on track for weekly gains
U.S. stocks inched higher on Friday, with investors hesitant to
make major moves ahead of a speech by Federal Reserve Chairwoman
Janet Yellen and a long holiday weekend.
The benchmark S&P 500 index is on track to end the week with
the biggest gains in nearly two months.
U.S. markets will be closed on Monday for the Memorial Day
(http://www.marketwatch.com/story/when-do-markets-close-for-memorial-day-2016-05-25)
holiday.
The S&P 500 was up 4 points, or 0.2%, to 2,093 with eight of
its ten main sectors trading higher. Energy and materials were
weighed down by falling oil prices.
The Dow Jones Industrial Average gained 26 points, or 0.2%, to
17,852. Meanwhile, the Nasdaq Composite advanced 9 points, or 0.2%,
at 4,911.
"Given that we have two major risk events for the markets in the
coming weeks--EU referendum in the U.K. and possible rate hike from
the Fed--I do wonder though whether this [recent] rally has the
legs to build significantly on the moves of the last couple of
days," said Craig Erlam, senior market analyst at Oanda, in a
note.
U.S. stocks closed little changed
(http://www.marketwatch.com/story/us-stock-futures-catch-their-breath-after-dow-jumps-359-points-in-2-days-2016-05-26)
on Thursday after two days of strong gains, which came on the back
of upbeat economic data and oil prices moving above $50 a barrel.
However, the rally started to fizzle later Thursday as crude failed
to hold above $50.
Both West Texas Intermediate crude oil and Brent continued to
fall on Friday
(http://www.marketwatch.com/story/oil-spends-less-than-a-day-above-50-as-investors-cash-in-ahead-of-opec-2016-05-27).
Waiting for Yellen: The Fed chief pays a high-profile visit to
Harvard University on Friday, where she's scheduled to deliver a
speech at 1:15 p.m. Eastern Time. Investors are eager to hear any
views
(http://www.marketwatch.com/story/feds-yellen-may-send-interest-rate-message-by-not-making-one-2016-05-25)
on the interest rate outlook, after a week of hawkish comments from
prominent Fed members.
Earlier this month, minutes from the U.S. central bank's April
meeting took markets by surprise by indicating a rate increase in
June is still on the table.
The ICE dollar index was up 0.2% to 95.335
(http://www.marketwatch.com/story/dollar-holds-tight-as-investors-wait-for-yellen-to-speak-later-2016-05-27)
ahead of Yellen's appearance.
After the hawkish minutes, expectations for a rate hike this
summer increased. Fed funds futures, which two weeks ago were
pricing in only a 4% probability of a June rate hike, were
signaling a 26% chance on Friday, according to the CME Fed Watch
tool. The probability of a July rate hike is at 55%.
Economic news: U.S. first-quarter economic growth was revised up
to 0.8% from a previous reading of 0.5%, based on a fresh estimate
that shows somewhat stronger home construction and restocking of
warehouse shelves.
Market reaction to a slight upward revision in first-quarter
U.S. economic growth was muted.
At 10 a.m. Eastern, a reading on consumer sentiment for May is
due, forecast to come in at 95.
At the Group of Seven meeting in Japan, political leaders warned
of rising risks to the global economy
(http://www.marketwatch.com/story/g-7-warns-against-currency-wars-reliance-on-new-monetary-policy-tools-2016-05-27),
but stopped short of announcing any coordinated plan to tackle the
concerns.
Movers & shakers: Shares of Ulta Salon Cosmetics &
Fragrance Inc.(ULTA) jumped 9%. Earnings from the makeup retailer
released late Thursday topped Wall Street estimates
(http://www.marketwatch.com/story/ulta-shares-rally-after-earnings-top-street-view-2016-05-26).
Valeant Pharmaceuticals International Inc.(VRX.T) rose 4 after a
report saying it had received and rejected a takeover
(http://www.marketwatch.com/story/valeant-rejected-takeover-bid-from-takeda-tpg-report-2016-05-26)
from Japan's Takeda Pharmaceutical Co.(4502.TO) and private-equity
firm TPG.
Big Lots Inc.(BIG) rallied 11% after the discount retailer
boosted its outlook for the year
(http://www.marketwatch.com/story/big-lots-raises-guidance-as-profit-increases-20-2016-05-27)
and reported a 20% rise in profit.
Alphabet Inc.(GOOGL) inched 0.6% higher after the Google-parent
on Thursday won a jury verdict
(http://www.marketwatch.com/story/google-beats-oracle-in-landmark-case-involving-use-of-java-apis-in-android-2016-05-26)
in a long-running case against Oracle Corp.(ORCL)
GameStop Corp.(GME) slumped 5.7% after the videogame retailer
late Thursday reported an 11% drop in earnings
(http://www.marketwatch.com/story/gamestop-posts-decline-in-revenue-profit-2016-05-26-174853626).
Other markets: European markets were slightly mixed
(http://www.marketwatch.com/story/european-stocks-edge-lower-with-yellen-speech-ahead-2016-05-27),
taking a breather after a three-day rally
(http://www.marketwatch.com/story/european-shares-waver-as-spanish-banks-slide-oil-stocks-rise-2016-05-26).
Markets closed mostly higher in Asia
(http://www.marketwatch.com/story/asian-shares-head-for-third-straight-week-of-gains-2016-05-27),
but traders there were cautious ahead Yellen's comments later on
Friday.
Gold prices inched lower.
(END) Dow Jones Newswires
May 27, 2016 09:51 ET (13:51 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.