The Dow Jones industrial average rose 102.69 points, or 0.63 percent, to 16,433.09, the S&P 500 gained 8.76 points, or 0.45 percent, to 1,961.05 and the Nasdaq Composite added 26.09 points, or 0.54 percent, to 4,822.34
.
US stocks rose on Friday and the S&P 500 posted its biggest weekly gain since July as
investors weighed whether the Federal Reserve will raise interest rates next week. Energy
shares dropped, however, after Goldman Sachs cut its oil price forecast through next year.
Eight of the 10 S&P 500 sectors closed higher, led by gains in utilities, which tend to rise as
bond yields fall. The index ended up 0.8 percent, while 10-year US Treasury note US10YT=RR
yields dipped. Investors are awaiting next week's Fed monetary policy meeting and news on
whether it will raise benchmark US rates for the first time in almost a decade. "It's really Fed
watch. That's what traders are waiting for," said Tim Ghriskey, chief investment officer of
Solaris Group in Bedford Hills, New York. "There's speculation the Fed might hold off, and if
they do, I think we'll see stocks rally. But to us, it's not a question of if the Fed raises rates but
when. It's going to happen." The Dow Jones industrial average rose 102.69 points, or 0.63
percent, to 16,433.09, the S&P 500 gained 8.76 points, or 0.45 percent, to 1,961.05 and the
Nasdaq Composite added 26.09 points, or 0.54 percent, to 4,822.34. For the week, the S&P
was up 2.1 percent and the Nasdaq rose 3.0 percent, registering their biggest weekly
percentage gains since mid-July. The Dow was up 2.1 percent for the week, its best weekly
percentage increase since late March. Stocks have been volatile since China devalued its
currency in August amid concerns of sputtering growth in the world's second-largest economy.
The S&P 500 has had moves of at least 1 percent in 11 sessions since Aug. 20. The Fed has
said it will raise rates when it sees a sustained economic recovery, especially in the job market.
The day's data signaled moderate economic growth and tame inflation. U.S. consumer
sentiment dropped to its lowest in a year in early September, while producer prices for August
were flat. Oil prices fell after the Goldman forecast, which cited oversupply and concerns over
China's economy. Goldman said crude could fall as low as USD 20 a barrel. ConocoPhillips,
down 2.2 percent at USD 47.36, was the biggest drag on the S&P 500. Gilead rose 2.2
percent to USD 109.63 after the company's USD 10 billion debt offering this week fueled
speculation it was planning a big acquisition. On the down side, Zumiez fell 32.5 percent to
USD 14.63 after the sports apparel and accessories maker forecast third-quarter sales and
profit below analysts' estimates. Volume was light. About 6.0 billion shares changed hands on
US exchanges, compared with the 8.0 billion daily average for the past 20 trading days
,
according to Thomson Reuters data. Advancing issues outnumbered declining ones on the NYSE by 1,629 to 1,429, for a 1.14-to-1 ratio on the upside; on the Nasdaq, 1,565 issues rose and 1,216 fell for a 1.29-to-1 ratio favoring advancers. The S&P 500 posted one new 52-week high and 10 new lows; the Nasdaq recorded 32 new highs and 87 new lows.
