Wall Street gave up early gains and closed mostly lower on Friday after oil prices topped US$75 a barrel for the first time. The Dow Jones industrial average crept higher on strong earnings from 3M Co, and stocks overall managed a gain for the week.
According to preliminary calculations, the Dow rose 4.56, or 0.04 percent, to 11,347.45. The Dow on Thursday had its best close since reaching 11,351.30 on Jan. 20, 2000.
Broader stock indicators were lower. The Standard & Poor's 500 fell 0.18, or 0.01 percent, to 1,311.28, while the NASDAQ composite index fell 19.69, or 0.83 percent, to 2,342.86. An analyst's downgrade of Dell Inc helped send technology stocks lower.
Investors' inflation fears intensified as oil prices climbed to a new record, rising US$1.48 to settle at US$75.17 a barrel on the New York Mercantile Exchange.
The continued gains in oil, gold and bond yields are keeping inflation worries at the forefront, said Ken Tower, chief market strategist for Schwab's CyberTrader. Evidence of economic growth in next week's reports will renew the debate over when the Federal Reserve might halt its rate tightening.
"The Fed is going to have a hard time stopping their increases if the economy seems to be gaining strength," Tower said. "I think the Fed will have a very hard time talking down the inflation hawks if the data comes in stronger than expected."
Bonds edged higher, with the yield on the 10-year Treasury note slipping to 5 percent from 5.04 percent late on Thursday. The US dollar was mostly lower against other major currencies; gold prices rose and lingered at 25-year highs.
The major indexes ended the week with gains. The Dow rose or 1.88 percent, the S&P 500 index rose 1.72 percent and the NASDAQ gained 0.72 percent.
Analysts say next week's trading will depend on the market's interpretation of the latest government reports, which include first-quarter GDP, employment costs, new home sales and consumer confidence.
Google Inc's earnings pushed its stock up US$22.10, or 5.3 percent, to US$437.10, but the technology sector stumbled after Citigroup cut computer maker Dell Inc to "sell" on concerns about slowing growth and weakening margins. EBay Inc also saw a second day of losses following its lackluster quarter. Dell sank US$1.23 to US$27.01, and eBay fell US$1.68 to US$35.09.
Dow industrial 3M rose US$2.46 to US$85.06 after saying its quarterly profit swelled 17 percent on a sturdy rise in sales. The market was also encouraged by 3M's increased outlook.
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