New York: US stocks edged higher on Friday, boosted by bullish corporate news from the tech sector, though major indexes remained on track to snap a multi-week string of weekly gains.
While the market`s recent trend upward was considered intact, broader gains were hard to come by with major indexes within striking distance of record levels amid ongoing violence in Iraq, which has taken oil prices to their highest since September.
Intel Corp was both the S&P 500`s biggest gainer and the Nasdaq`s most active name, jumping 6.2 percent to $29.70 a day after the Dow component raised its full-year revenue outlook, citing stronger-than-expected demand for personal computers used by businesses.
"The market isn`t cheap, but it isn`t crazy expensive and the sectors that are looking better are cyclical in nature," said Michael Mullaney, chief investment officer at Fiduciary Trust Co in Boston. "Tech has been doing well from a price return standpoint, and that should continue."
OpenTable Inc popped 47 percent to $103.42 in heavy trading after Priceline Group Inc said it would buy the company for $2.6 billion. Priceline fell 1 percent to $1,213.75.
Among other Internet names, Yelp Inc jumped 14 percent to $74.79 and GrubHub Inc rose 9 percent to $36.67.
The Dow Jones industrial average rose 27.03 points, or 0.16 percent, to 16,761.22, the S&P 500 gained 3.55 points, or 0.18 percent, to 1,933.66 and the Nasdaq Composite added 8.50 points, or 0.2 percent, to 4,306.13. For the week, the Dow is down 1 percent, the S&P is down 0.8 percent and the Nasdaq is down 0.3 percent.
The VIX volatility index is up 7.7 percent on the week. Despite the spike, the so-called `fear index` remains well below its historical average.
Oil rose 0.1 percent to $106.66 per barrel but continues to be in focus amid the tense situation in Iraq, where Islamist rebel fighters captured two more towns overnight as they moved toward Baghdad. US President Barack Obama responded by threatening military strikes.
"Obama saying he will do whatever is necessary to right the situation is what a lot of people want to see," said Mullaney, who helps oversee $11.3 billion in assets. "Most people would prefer to see us as the world’s policemen rather than sitting out on the sidelines being isolationist."
US consumer sentiment unexpectedly fell in June as views by consumers with the lowest incomes soured, according to the preliminary June read from the Thomson Reuters/University of Michigan`s index on consumer sentiment.
Finisar Corp plunged 22 percent to $19.74 a day after forecasting weaker-than-expected earnings, citing higher capital expenditure in China.
