By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks were little changed on
Friday, as investors paused after two difficult days for equities
and looked to a report on consumer sentiment.
"An eerie calm, after yesterday's dramatic swings, has settled
over the capital markets," Marc Chandler, global head of currency
strategy at Brown Brothers Harriman, wrote in an emailed note.
Benchmark indexes appeared on track for a second weekly drop,
with the Dow Jones Industrial Average (DJI) off 4.46 points, or
less than 0.1%, to 15,107.73, a level that has it down 2.1% for the
week.
The S&P 500 index (SPX) lost 1.25 points, or 0.1%, to
1,660.07, leaving it off 1.9% from last Friday's close.
Down 1.4% this week, the Nasdaq Composite (RIXF) rose 2.25
points, or 0.1%, to 3,608.66.
Decliners outdid advancers by a roughly 3-2 ratio on the New
York Stock Exchange, where 162 million shares traded by 9:50 a.m.
Eastern.
The Commerce Department reported housing starts climbed at an
annual rate of 896,00, less than the 915,000 estimated.
"They were a bit weaker than expected, but I still think it's
overall good news, as they approached 900,000. I was disappointed
about single-family starts, which actually declined, and it is a
bit surprising. Based on recent permit data, I was hoping to see
more of an uptick on the single-family side," said Elizabeth
Ptacek, a senior credit real-estate analyst at KeyBank.
But Ptacek believes that difficulty in getting financing is more
of an issue for housing than higher interest rates: "Credit remains
very tight. It's easing, but not quickly enough for first-time home
buyers."
The Labor Department reported productivity rose at a slightly
better-than-estimated 0.9% annual rate in the second quarter.
At 9:55 a.m., the University of Michigan/Thomson preliminary
consumer-sentiment index for August is expected to remain at an
85.1 reading.
The 10-year Treasury yield (10_YEAR) was up 2 basis points at
2.788%.
Gold prices rose $1.20, or 0.1%, to $1,362.10 an ounce,
extending a two-day rally in which it gained $40.40, or 3.1%. Up
for six of its last five sessions, the metal is up almost 4% for
the month and down 19% for the year. Oil prices fell and the dollar
edged lower against the currencies of major U.S. trading
partners.
Nordstrom Inc. (JWN) shares fell 3.1% a day after the high-end
retailer reported lower-than-expected sales and cut its full-year
forecast.
Aspen Technology Inc. (AZPN) shares jumped nearly 13% after the
maker of software for process manufacturing posted
higher-than-expected sales and earnings for the fiscal fourth
quarter.
PC maker Dell Inc.(DELL) posted adjusted earnings of 25 cents
per share -- a penny higher than analysts had predicted.
Upbeat jobless-claims data on Thursday helped cement the view
that tapering of the Federal Reserve's bond-buying program will
happen in September. U.S. stocks sank for a second day, driven by
tapering fears, downbeat corporate news and a spike in Treasury
yields to 2011 highs.
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