NEW YORK (Reuters) – Wall Street's most important stock indexes rallied on Friday as Nike Inc's stock rallied in the quarter as fears over US international trade eased.
The Dow, S & P 500 and Nasdaq gained in the quarter. The Dow rose 0.7 percent, the S & P 500 2.94 percent and the tech-heavy Nasdaq 6.33 percent. The small cap Russell 2000, whose components are more domestically oriented than the large caps, rose 7.4 percent.
Like the Russell, the major sectors of the S & P were somewhat skeptical of trading. Energy posted the largest percentage gains for the quarter as oil prices rose and growth sectors such as technology and consumer discretionary recorded solid gains. But also real estate and utilities, which are considered as defensive sectors, continued to develop.
To see a chart of the S & P 500 sector performance in Q2, click: reut.rs/2IH23Do
Nike's stock climbed 1
Nike shares closed the day up 11.1 percent to $ 79.68, the biggest daily gain in nearly four years. Nike was the best boost for the Dow Jones and the S & P 500.
The S & P 500 banking index ended the day barely changing after hitting a week high. The Federal Reserve on late Thursday reported that US lenders had approved the second installment of the Fed's annual stress tests, although the Fed set conditions for some and restricted Goldman Sachs Group Inc and Morgan Stanley from rising capital distributions.
Wells Fargo & Co was a bright spot, rising 3.4 percent.
Friday's session reflected the momentary easing of trade concerns that shook the market earlier this week, several investors said, even though the major indices posted gains in the final hour of trading.
"There really are not many headlines," said Ryan Detrick, chief market strategist for LPL Financial in Charlotte, North Carolina. "We threw back a late week of previous worries."
Investors took note of data from the US Department of Commerce showing that consumer spending slowed as the retail consumer price index, a measure of inflation, hit the Federal Reserve's annual target of 2 percent for the first time in six years. Fears of rising inflation and a subsequent slowdown in the economy led to a decline in inventories several times this year.
"People are coming down at the end of the month and quarter," said Mark Luschini, chief investment officer at Janney Montgomery Scott in Philadelphia.
The Dow Jones Industrial Average rose 55.36 points or 0.23 percent to 24,271.41, the S & P 500 gained 2.06 points or 0.08 percent to 2,718.37 and the Nasdaq Composite added 6, Add 62 points or 0.09 percent to 7,510.30.
To see a second-quarter performance index graph, click: reut.rs/2KyJinB
For the week, however, all three indices registered losses. The Dow lost 1.26 percent, the S & P 500 fell 1.33 percent and the Nasdaq lost 2.37 percent. The Dow lost for the first time in more than two years three weeks in a row.
For the month of June, the Dow lost 0.59 percent, while the S & P 500 rose 0.49 percent and the Nasdaq 0.92 percent.
On Friday, Vertex Pharmaceuticals Inc's shares climbed 15.2 percent, most on the S & P 500 after Galapagos NV's rival program on cystic fibrosis reported disappointing results.
KB Home stock climbed 7.3 percent after second-quarter results exceeded Wall Street estimates. The strong results are also shared by other housing companies, including D.R. Horton Inc. and PulteGroup Inc.
Constellation Brands Inc fell 5.8 percent after analysts' estimates for quarterly earnings and full-year earnings guidance for Corona beer makers failed.
Progressive problems outperformed the declines on the NYSE by a ratio of 1.51 to 1; on the Nasdaq, a ratio of 1.19 to 1 favored the trailblazers.
The S & P 500 recorded 10 new 52-week highs and two new lows; The Nasdaq Composite recorded 52 new highs and 67 new lows.
The volume of US stock exchanges was 7.16 billion shares, compared to the average of 7.28 billion over the last 20 trading days.
April Joyner Report; Additional reporting by Amy Caren Daniel in Bengaluru; Edited by Leslie Adler