Wall Street Halts Slide, but Ends Week Mixed

Stocks rose on Friday, as strong earnings from big companies lifted the Dow Jones industrial average, but the broader Standard & Poor’s 500-stock index posted its first weekly loss of the year.

The Dow closed up 119.95 points, or 0.9 percent, at 14,000.57, its third-biggest daily gain this year. The S.& P. 500 rose 13.18 points, also 0.9 percent, to 1,515.60. The Nasdaq composite index rose 30.33, or 1 percent, to 3,161.82.

The S.& P. 500 and Nasdaq closed slightly lower for the week, while the Dow edged higher.

Bill Stone, chief investment strategist with PNC Wealth Management, said he expected stocks to hold up despite the volatility this week.

“You’re going to get bumps and bruises along the way, but we do believe things are actually getting better, so I think there’s underlying demand” for stocks, Mr. Stone said.

Investors sent stocks plunging Wednesday after minutes from the Federal Reserve’s latest policy meeting revealed disagreement over how long the Fed should continue to buy bonds in an effort to support the economy. The slide continued Thursday. The Dow lost 155 points over those two days.

Many analysts say the Fed’s bond-buying and resulting low interest rates have driven this year’s stock rally, which lifted indexes to their highest levels since before the 2008 financial crisis. The Dow is now just 164 points below its nominal record close of 14,164, reached in October 2007.

United States stocks followed European stocks higher after a survey of German business optimism showed an increase in sentiment, adding to evidence that the country would avoid a recession. Germany’s economic vitality is crucial for the beleaguered region, offsetting economic contraction in surrounding countries.

“Germany is really the bedrock,” Mr. Stone said. “If it gives way, then you have real problems.”

The CAC-40 in France rose 2.2 percent, and the Germany DAX gained 1 percent.

The biggest gainer on Friday in both the Dow and S.& P. 500 was Hewlett-Packard, which beat all forecasts when it posted its first-quarter results late Thursday, a relief after months of bad news. H.P.’s shares on the New York Stock Exchange rose $2.10, or 12.3 percent, to $19.20.

Cabot Oil & Gas was the S.& P. 500’s second-best performer, a day after the company reported earnings above analysts’ expectations. Its stock rose $5.95, or 11.1 percent, to $59.81.

Shares in the American International Group jumped after the company’s fourth-quarter operating results exceeded analysts’ forecasts. Its net loss was $4 billion, mainly because of claims related to Hurricane Sandy. A.I.G. shares rose $1.17, or 3.1 percent, to $38.45. Abercrombie & Fitch shares sank after a crucial sales measure declined in the all-important holiday quarter. The stock fell $2.19, or 4.5 percent, to $46.86.

Stock in WebMD Health, a health Web site operator, soared after the company reported better-than-expected revenue and an optimistic outlook for 2013. The shares rose $4.14, or 25.4 percent, to $20.44.

Texas Instruments stock rose strongly after the company said it would increase its dividend by a third and buy back up to $5 billion more of its own stock. Its shares gained $1.70, or 5.2 percent, to $34.18.

Interest rates were steady. The Treasury’s benchmark 10-year note rose 3/32, to 100 11/32, and the yield fell to 1.96 percent, from 1.97 percent late Thursday.

Shares Continue to Slide, Awaiting a Budget Accord

Stocks fell on Friday as another decline in Apple took a toll and investors unloaded some shares because of the uncertainty surrounding the budget negotiations in Washington.

All three major stock indexes ended the week slightly lower, the Nasdaq for the second consecutive week.

Apple’s stock slid 3.76 percent, to $509.79, after the iPhone 5 received a tepid reception in China.

UBS maintained its buy rating on Apple, but cut its price target to $700 from $780 and expressed concerns that iPhone production may be dropping.

Shares of Apple have fallen 27.4 percent since their closing high of $702.10 on Sept. 19.

The S.& P. Information Technology Index lost 1 percent as Apple fell and Jabil Circuit fell 5.5 percent, to $17.51, after UBS cut its price target.

Stocks have been treading water as the possibility of not reaching a deal to settle the budget impasse until early next year is rising.

“We’re faced with uncertainty,” said Larry Peruzzi, senior equity trader at Cabrera Capital Markets in Boston. “And that’s going to continue now into January. It basically puts everybody on hold and just have the markets kind of thrash around.”

President Obama and the House speaker, John A. Boehner, held a “frank” meeting on Thursday at the White House to discuss how to avoid the tax increases and spending cuts set to kick in early in 2013.

The Dow Jones industrial average slipped 35.71 points, or 0.27 percent, to 13,135.01. The Standard & Poor’s 500-stock index fell 5.87 points, or 0.41 percent, to 1,413.58. The Nasdaq composite index lost 20.83 points, or 0.70 percent, to 2,971.33.

For the week, the Dow slipped 0.15 percent, while the S.& P. 500 fell 0.3 percent and the Nasdaq declined 0.2 percent.

Among other Nasdaq decliners, shares of the chip maker Qualcomm slid 4.7 percent, to $59.83.

Best Buy slid 14.7 percent, to $12.05, after the electronics retailer agreed to extend the deadline for the company’s founder to make a bid.

Among the day’s economic data, consumer prices fell in November for the first time in six months, indicating inflation pressures were muted.

A separate report showed manufacturing grew at its swiftest rate in eight months in December.

Chinese data was encouraging, as Chinese manufacturing grew at its fastest rate in 14 months in December. The news was deemed as helpful for materials companies in the United States, including United States Steel, which rose 6.8 percent, to $23.85.

Interest rates were lower. The Treasury’s benchmark 10-year note rose 8/32, to 99 9/32, and the yield fell to 1.70 percent from 1.73 percent late Thursday.

Shares Continue to Slide, Awaiting a Budget Accord

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