Stocks Advance: DIA, S&P, NASDAQ All Gained

After a number of positive earnings reports, investors saw stocks advance on Friday. Although the S&P 500 made a significant move, it still finished the week in the red by just over two percent. The Dow Jones Industrial Average (DIA) gained 10 points to hit 14,547 for a 0.07 percent advance. The S&P 500 (SPY) climbed 0.88 percent to close at 1,555.

The Nasdaq 100 (QQQ) jumped 1.40 percent to 2,780. The Russell 2000 (IWM) surged 1.22 percent to end the day at 912.

Chipotle Mexican Grill (CMG) and Capital One (COF) led the gainers on Friday with advances of 11.54 percent and 6.40 percent (respectively) after beating analysts’ earnings estimates. So far this quarter, approximately 70 percent of companies reporting earnings have beaten analysts’ estimates.

In other major markets, oil (USO) fell 0.79 percent to close at $31.39.

On London’s ICE Futures Europe Exchange, June futures for Brent crude oil advanced by 40 cents (0.40 percent) to $99.53/bbl. (BNO, USO).

June gold futures advanced by $14.50 (1.04 percent) to $1,407.00 per ounce (GLD).

Transports were turbocharged on Friday, with the Dow Jones Transportation Index (IYT) surging 1.56 percent.

European stocks finished the week with a nice advance as the commodities sector recovered from its decline earlier in the week. The Euro STOXX 50 Index finished Friday’s trading session with a 0.77 percent advance to 2,575 – remaining below its 50-day moving average of 2,644. Japan’s Nikkei 225 Stock Average climbed 0.73 percent to 13,316 after Finance Minister Taro Aso explained that the Group of 20, meeting in Washington, would not censure Japan for debasing its currency during the course of an extensive monetary stimulus program (EWJ).

In China, stocks headed skyward on Friday, following a report from the China Securities News that the nation’s Securities Regulatory Commission is considering relaxation of its rules so as to allow “A” shares to be added to international indices. The Shanghai Composite Index advanced 2.14 percent to 2,244 (FXI). Hong Kong’s Hang Seng Index soared 2.33 percent to 22,013 (EWH).

Technical indicators reveal that the S&P 500 crossed back above its 50-day moving average of 1,543 to close at 1,555, easing some of the anxiety built-up on Thursday when it closed below the 50-day MA for the first time this year . Its Relative Strength Index advanced to 48.38 although the MACD continues to sink below the signal line, suggesting more downward momentum.

For the day, most sectors finished solidly in positive territory. The consumer staples, utilities, healthcare and financial sectors led the way. The tech sector was barely positive while energy was the only sector in the red.

Consumer Discretionary (XLY): +1.14%

Technology: (XLK): +0.03%

Industrials (XLI): +0.52%

Materials: (XLB): +1.18%

Energy (XLE): -0.23%

Financials: (XLF): +1.35%

Utilities (XLU): +1.50%

Health Care: (XLV): +1.43%

Consumer Staples (XLP): +1.59%

Bottom line: After a rough week, the major American stock indices made positive moves on Friday, with the Nasdaq and the Russell 2000 finishing the session with advances beyond one percent, while the Dow barely squeaked out of the red during the final minutes of the session.

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