The Dow Jones Industrial Average rose, paring its third straight weekly loss, after 3M Co said first-quarter earnings exceeded expectations.
Financial shares including JP Morgan Chase & Co gained after the government said the unemployment rate rose in March, suggesting a sluggish recovery may enable the Federal Reserve to hold off raising interest rates. Cisco Systems Inc led computer-related shares lower on concern profits may lag expectations.
"People are very nervous about earnings and very unsure about the economy," said Andrew Abrams, who manages US$100 million at CWH Associates Inc, a Stamford, Connecticut-based hedge fund.
The Dow climbed 53.01, or 0.5 percent, to 10,288.18, with 3M accounting for almost all of the advance. For the week, the index is down 1 percent. The Standard & Poor's 500 Index slid 2.28 to 1,124.06, extending its weekly loss to 1.9 percent.
The NASDAQ Composite Index dropped 13.19, or 0.7 percent, to 1,784.30, after McData Corp, which supplies EMC Corp, the world's largest storage-equipment maker, trimmed sales forecasts. It declined 3.5 percent in its fourth straight weekly slide.
Stocks were hurt after the Labor Department said the unemployment rate climbed to 5.7 percent in March from 5.5 percent in February. Analysts surveyed by Bloomberg had forecast a rate of 5.6 percent. In addition, revisions to the February employment report showed the economy lost 2,000 jobs. An earlier report said 66,000 jobs were created.
Three stocks fell for every two that rose on the New York Stock Exchange, while six declined for every five that advanced on the Nasdaq Stock Market. Some 885 million shares traded on the Big Board by 3pm, in line with two weeks ago.
3M advanced US$7.43, or 6.5 percent, to US$121.51, its biggest gain since May 2001. The maker of products ranging from scour pads to Scotch tape said it earned at least US$1.20 a share excluding some expenses, compared with its earlier forecast of US$1.05 to US$1.20 a share. 3M, which yesterday changed its name from Minnesota Mining & Manufacturing Co, has an 8.2 percent weighting in the Dow, more than any other member, and is the biggest gainer in the index this week.
Alcoa Inc rose US$1.03 to US$37.94. Profit at the world's biggest aluminum company met estimates as the company cut costs and bought companies in businesses other than aluminum to offset declining aluminum prices and sales.
Bonds rose for a fourth day as the jobs report added to evidence the economy may be rebounding at a sluggish pace, suggesting the Fed may not raise interest rates soon.
JP Morgan jumped US0.66 to US$35.10 and Washington Mutual Inc, the biggest savings and loan, advanced US$1.08 to US$35.71.
"I want to see nice, steady sustainable growth and the Fed staying on the sidelines -- this data shows that," said Philip Orlando, chief investment officer at Value Line Asset Management, which oversees US$6 billion. "The Fed absolutely won't be raising interest rates when they meet May 7 and probably not on June 26."
Adelphia Communications Corp advanced US$0.52 to US$10.52.
The company, under federal investigation and facing investor demand for more information on its accounting, said it hired three investment banks to advise on the possible sale of cable assets.
The cable-television operator has lost about half its value since it disclosed US$2.3 billion in debt last week.
RSS