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New York - Wall Street's upward momentum continued on Friday, with major indexes largely rising and the S&P 500 briefly climbing to a new record as energy and industrial names outperformed.
Both the Dow and S&P 500 are on track for their fourth day of gains out of the past five, and all three major indexes are set to close out a week of strong gains.
Geopolitical issues remained in focus after President Vladimir Putin signed laws completing Russia's annexation of Crimea and investors took fright at a US decision to slap sanctions on his inner circle. Russia's Micex stock index fell about 3% but recovered some losses.
While some analysts say US equities are vulnerable to any escalation in geopolitical tensions with Russia, stocks were boosted by Moscow's assertion that no other Ukrainian region would be subject to intervention.
"The path of least resistance for markets is up, and so far it doesn't think the Ukraine issue is too big of a negative since no one really thinks that Putin will do anything too drastic," said Michael Matousek, head trader at US Global Investors Inc in San Antonio.
"Of course if things do heat up, it would really become a headwind for markets."
Pace of growth
Companies tied to the pace of economic growth were among the biggest gainers Friday, with energy and industrial shares rallying. Joy Global Inc jumped 3% to $56.79 while Halliburton Co was up 1.4% to $58.19.
On the downside, Nike Inc late Thursday said growing pressures from weak emerging market currencies would take a toll on its profit.
The athletic apparel maker, which gets about 30% of revenue from emerging markets, also said China sales would be unchanged or slightly down this quarter. Shares fell 3 percent to $76.82.
The Dow Jones industrial average was up 46.21 points, or 0.28%, at 16 377.26. The Standard & Poor's 500 Index was up 5.21 points, or 0.28%, at 1 877.22. The Nasdaq Composite Index was down 20.27 points, or 0.47%, at 4 299.02.
The S&P 500 briefly climbed to a record high of 1 883.97, just barely over its previous record of 1 883.57. If the index's current levels hold, that would represent a record close.
For the week, both the Dow and S&P are up 2% while the Nasdaq is up 1.4%.
Symantec Corp shares weighed on the Nasdaq, tumbling 13% to $18.16 a day after it fired Chief Executive Steve Bennett, the second time it has sacked its top executive in less than two years.
WellPoint Inc raised its earnings outlook, saying it expected strong membership growth. Shares rose 1.1% to $100.81.
Anaemic volume
Despite recent strength, volume has been anaemic on positive market days, suggesting limited conviction behind the move.
However, volume is expected to surge on Friday as options expire alongside multiple index rebalances. Credit Suisse estimates $14bn in gross trading from the S&P 500 index rebalance, with another $6bn from rebalancing in other indexes.
In earnings news, Tiffany reported adjusted fourth-quarter earnings and gave a profit outlook that was below estimates.
However, shares rose 2.3% to $93.23. Darden Restaurants Inc reported third-quarter results largely in line with expectations and affirmed its plan to divest its Red Lobster business. Shares rose 2.6% to $50.61.
Lin Media LLC jumped 21% to $25.98. Media General agreed to buy the company for $1.6bn. Media General jumped 6.1% to $18.39.
The US Federal Reserve late Thursday said big US banks have enough capital buffers to withstand a drastic economic downturn.
The central bank said 29 out of 30 major banks met the minimum hurdle in its annual health check.
The only bank to fall under the 5% requirement for top-tier capital was Zion Bancorp, which said it would resubmit a capital plan to the Fed. Shares of Zion fell 2.4% to $32.20.
