Major U.S. stock indexes closed mixed Friday, as falling oil prices helped support the market.
S&P MarketScope notes trading was slow, while the expiration of August options may have contributed to a seesaw session.
By the end of trading Friday, the Dow Jones industrial average was higher by 43.97 points, or 0.38%, at 11,659.90. The broader S&P 500 added 5.26 points, or 0.41%, to 1,298.19. The tech-heavy Nasdaq composite index slipped 1.15 points, or 0.05%, to 2,452.52.
Commodities overall were hammered Friday by a growing perception the global economy, long resilient despite U.S. weakness, is now slowing significantly. And that is reducing demand for a wide range of commodities.
September West Texas Intermediate crude oil futures fell $1.24 to $113.77 per barrel.
Bonds were higher following a weaker-than-expected report on consumer sentiment. The dollar index surged amid news that Goldman Sachs analysts said the buck has bottomed.
Oil stocks were lower, while consumer staples stocks were higher. Financial stocks were flat as Wachovia (WB) became the fifth bank to settle an auction rate securities suit.
In economic news Friday, U.S. Empire State manufacturing index improved to 2.8 in August, after edging up to -4.9 in July and above the modest improvement to -3.1 that markets expected. The employment index rose to -4.5 after falling to -6.3 previously. New orders declined to -2.2 from 8.3. Prices paid fell to 65.2 from 77.9. Prices received held at 32.5. The future general business conditions index recovered 19 points to 34.6 after a sharp decline last month.
"The data are better than expected and could help put a lid on Treasuries today and support stocks," said S&P Economics in a note Friday.
U.S. industrial production edged up 0.2% in July from a revised 0.4% increase in June (0.5% previously). Economists had been expecting an increase of 0.1%. Capacity utilization was 79.9% from 79.8% in June (revised from 79.9%). The manufacturing index was up 0.4% from 0.1%, with motor vehicles and parts manufacturing rising 3.6%, computers and electronics manufacturing rising 0.1%, and machinery orders rising 0.7. Utility output fell 1.9% while mining was up 0.9%.
The University of Michigan reported that its preliminary estimate of August consumer sentiment edged up to 61.7 from 61.2 in July. The rise was a bit less than the 62 expected by the consensus. Consumers felt that the economy was worsening, as the index of current conditions fell to 69.3 from 73.1, but became more optimistic about the future, with the expectations components rising to 56.8 from 53.5. Lower oil prices probably led the latter shift, while worsening labor markets hurt the view of current conditions, says S&P Economics.
Next week's economic news will include data on the producer price index and housing starts on Tuesday and leading economic indicators on Thursday.
According to a Reuters report, Goldman Sachs (GS) has abandoned its 10-year bearish stance on the dollar and now says the greenback has bottomed due to slowing economic growth, falling oil prices and a deteriorating outlook outside the U.S.
Among Friday's stocks in the news, J.C. Penney (JCP) posted better-than-expected earnings of 52 cents per share, vs. 81 cents a year ago. Wall Street analysts were expecting earnings of 50 cents per share. Same-store sales fell 4.3%, while total sales dropped 2.5%.
Abercrombie & Fitch (ANF) posted second quarter EPS of 87 cents (including a one-cent charge), vs. 88 cents one year earlier on 4% lower same-store sales and 5.1% higher total sales. The company sees $3.40-$3.45 second-half fiscal 2009 EPS and $4.95-$5.00 EPS for the full fiscal year. Abercrombie says the low end of fiscal 2009 guidance reflects an estimated 7% drop in same-store sales.
Nordstrom (JWN) posted second quarter EPS of 65 cents, vs.