U.S. stock indexes rise on hope for Europe
NEW YORK (MarketWatch) -- U.S. stocks rose on Friday, sealing their best week this year, on hope Europe would move to combat its economic crisis, including an anticipated recapitalization of Spanish banks.
"The market is expecting some monetary relief," said Bruce Bittles, chief investment strategist at RW Baird & Co.
"There is optimism that over the weekend things are going to happen in Spain, that they are going to successfully hold out their hat and get some sort of lifeline," said John Cannally, economist at LPL Financial in Boston.
"You don't go through a weekend anymore where there's not some conference call or event that could move markets," Cannally added.
Up 3.6% for the week, the Dow Jones Industrial Average (DJIA) added 93.24 points, or 0.8%, to 12,554.20.
Gaining 3.7% for the week, the S&P 500 Index (SPX) rose 10.67 points, or 0.8%, to 1,325.66, with telecommunications and financials the best performers of its 10 industry groups and energy the sole declining sector.
The Nasdaq Composite Index (COMP) gained 27.40 points, or 1%, to 2,858.42, leaving it up 4% from the week-ago finish.
For every stock falling more than two gained on the New York Stock Exchange, where nearly 493 million shares traded. Composite volume topped 3.4 billion.
The U.S. dollar (DXY) rose and Treasury yields (10_YEAR) mostly fell. Crude-oil futures (CLN2) fell but gained on the week, finishing at $84.10 a barrel.
The euro (EURUSD) made a partial recovery ahead of a weekend that includes talks by euro-zone finance officials expected to focus on emergency assistance to Spanish lenders.
Reuters cited sources in Brussels and Berlin in reporting that Spain would likely request euro-zone help with recapitalizing its banks during the weekend, with an announcement expected Saturday.
In nationally televised comments to reporters in the White House briefing room, President Barack Obama urged Europe's leaders to help the troubled banking sector. Read more on Obama.
"It strikes me as another coordinated activity," said Cannally of the president's comments.
U.S. stocks had declined as economic reports from Europe furthered concern about the global economy, with German exports declining more than projected and Italian industrial production contracting in April.
And, Chinese economic data to be released during the weekend "should give them room to cut more," said Cannally of expectations China would follow up on its first interest-rate cut in years with additional cuts.
The Commerce Department on Friday reported the U.S. trade deficit narrowed 4.9% in April to $50.1 billion. Read more on trade deficit.
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