NEW YORK (CNN/Money) -
Stocks gained Friday, at the end of a mixed week for the market, in which investors jumped back into beaten-down tech shares and showed some resilience in the face of stubbornly high oil prices and some weak economic news.
The Dow Jones industrial average (up 39.97 to 10,284.46, Charts) and the Standard & Poor's 500 (up 5.05 to 1,128.55, Charts) index both gained around 0.4 percent. The Nasdaq composite (up 14.99 to 3,095.25, Charts) gained 0.3 percent.
For the week, the indexes closed mixed.
The Dow lost 2.8 percent, breaking a five-week winning streak, but the S&P gained 0.4 percent for the week, extending its winning streak to six in a row.
The Nasdaq gained 0.8 percent for the five-day period, advancing for the fourth week out of five.
"All things considered, we're doing OK here," said Donald Selkin, director of research at Joseph Stevens. "Here we are in the seasonally worst time of the year, and we're hanging in there."
Next week brings fresh data to chew over, including the first batch of quarterly earnings from a number of brokers. Also next week, the Federal Reserve will hold a meeting on interest rate policy.
The central bank is expected to raise the Fed funds rate, an overnight bank lending rate, by a quarter-percentage point, to 1.50 percent, at the conclusion of its policy-setting meeting Tuesday.
"I think it's pretty much built into the market the Fed will raise rates by 25 percentage points," said Mark Bryant, senior vice president at Brean, Murray & Co. "If they don't, that may upset the market, particularly since some of the recent (economic) reports have been weaker."
Selkin said that the Fed decision next week isn't likely to be a surprise to markets, but that it's of interest that Thursday's inflation data was pretty tame. In addition, the bond market has been rallying of late, pushing yields lower, which seems to imply rates may not rise as much this year as some had feared.
Tuesday's Fed meeting marks the last one before the presidential election. Two follow the election.
"I would say in the next few weeks we can kind of grind in place, maybe a little to the upside," Selkin added. "Maybe we'll get through the pre-announcement period without too much trouble, and then we'll get into third-quarter earnings in October, and they should be mostly in line."
Friday's market
Stocks had seesawed on both sides of breakeven throughout the morning and early afternoon, due to the impact of the quadruple-witching day.
The quadruple options expiration is a quarterly event in which stock index futures and options, and individual stock futures and options all expire simultaneously. The process often causes volatility on the day of the expiration and especially in the days just before it.
"It's basically an options expiration push, and it's continuing this sort of stealth rally we've had for the last few weeks," Bryant added.
Putting some limits on any gains: a continued rise in oil prices, sparked by renewed concerns about supply disruptions.
Hurricane Ivan inflicted great damage along the U.S. Gulf Coast. However, as the storm passed, a number of the oil refineries shut down in its wake resumed operation. But this brought little relief to oil prices, with Tropical Storm Jeanne headed for the Bahamas.
U.S. light crude oil for October delivery added $1.71 to settle at $45.59 a barrel on the New York Mercantile Exchange.
On the move
The rise in crude prices boosted a number of stocks in the sector, including Dow component Exxon Mobil (XOM: up $0.82 to $48.37, Research, Estimates), which gained 1.7 percent.
The Philadelphia Oil Services (Charts) index added around 1.7 percent.
Overall, gains on the Dow were pretty broad-based, with 20 out of 30 blue-chip issues advancing, led by Caterpillar (CAT: up $1.28 to $76.12, Research, Estimates), Intel (INTC: up $0.48 to $20.59, Research, Estimates) and General Electric (GE: up $0.69 to $34.22, Research, Estimates).
In corporate news, Ford (F: up $0.27 to $14.22, Research, Estimates) boosted its third-quarter forecast, saying it now expects to earn 10 cents to 15 cents per share, versus earlier guidance of breakeven to five cents per share. Analysts, on average, are expecting the company to earn 10 cents per share. Ford also boosted its full-year forecast.
Shares gained just under 2 percent.
Texas Instruments (TXN: up $0.49 to $22.08, Research, Estimates) added 2.3 percent after it announced a $1 billion stock buyback program late Thursday and said it was boosting its quarterly dividend by 18 percent.
Qualcomm (QCOM: down $1.57 to $38.83, Research, Estimates) remained a negative for the Nasdaq after saying that it was going to review the way it accounted for technology royalties. The wireless chipmaker also boosted its fourth quarter and full-year earnings forecast.
However, other chip stocks did better, as evidenced by Intel's gains. The Philadelphia Semiconductor (up 7.05 to 388.50, Charts) index, or the SOX, added 1.8 percent.
Cisco Systems (CSCO: down $0.43 to $19.16, Research, Estimates) lost 2.2 percent after Lehman Bros. downgraded the stock to "equal weight" from "overweight," citing weaker trends in August.
Among other movers, Flamel Technology (FLML: down $4.29 to $14.68, Research, Estimates) lost 22.6 percent in active Nasdaq trade on news that Bristol-Myers Squibb (BMY: up $0.27 to $24.68, Research, Estimates) has opted to end its insulin drug development arrangement with the French pharmaceutical company. Following the news, Merrill Lynch and others downgraded Flamel.
Volume remained weak with a number of participants out in observance of Rosh Hashanah, the Jewish new year.
Market breadth was barely positive. On the New York Stock Exchange, winners edged losers by a narrow margin on volume of 1.43 billion shares. On the Nasdaq, advancers just edged out decliners on volume of 1.64 billion shares.
Stocks briefly dipped after the mid-morning release of the University of Michigan's preliminary consumer sentiment index. Sentiment fell to 95.8 in September from 95.9 in August. Economists surveyed by Briefing.com were expecting it to rise to 96.7, on average.
Treasury prices retreated after Thursday's big rally. The 10-year note yield rose to 4.11 percent from 4.05 percent late Thursday. Treasury prices and yields move in opposite directions.
In currency trading, the dollar gained modestly versus the euro and inched lower versus the yen.
COMEX gold added $1.10 to settle at $407.60 an ounce.
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