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U.S. stocks rose in afternoon trading on Friday, in a partial rebound from a lengthy spat of trade-related weakness, though major indexes remained on track for weekly declines.
Energy stocks were by far the biggest gainers of the day, with the group surging after OPEC reached a deal to boost output, though not by as much as some had expected.
What are the main benchmarks doing?
The Dow Jones Industrial Average rose 125 points, or 0.5%, to 24,586. The blue-chip average is coming off an eight-day losing streak, its longest such stretch since March 2017. If the blue-chip average were to close lower on Friday, extending the decline to a ninth day, that would represent the longest streak since 1978.
The S&P 500 added 0.5%, or 13 points, to 2,763. The day’s gains were broad, with nine of the 11 primary S&P 500 sectors higher on the day. Energy was by far the biggest gainer on the day, surging 2.9%, a move that tracked a sharp rise in crude-oil prices.
The Nasdaq Composite Index was unchanged at 7,712.
For the week, the Dow is down 1.9%, on track for its second straight weekly drop. The S&P has lost 0.7% and the Nasdaq is off 0.5%, threatening to end a four-week streak of gains.
What’s driving markets?
Investors continue to worry that trade tensions between the U.S. and major trading partners such as China and the European Union could develop into a big drag on the global economy. These concerns come as the American economy, the world’s largest, is increasingly viewed as in the late stages of its expansion. The EU has said it would begin implementing tariffs on $3.2 billion in U.S. imports on Friday.
In the latest trade development, Trump threatened 20% tariffs on European cars coming into the U.S. General Motors Co. fell 0.3% while Ford Motor Co. was down 0.5%. Tesla Inc. sank 3.8%.
Check out: And the most American-made car is…
Crude futures were up sharply after OPEC members reached a deal that would result in an effective rise in production of around 600,000 barrels a day, a figure that comes as a relief to bullish traders who feared a more aggressive increase.
What are strategists saying?
“We’re seeing continued uncertainty around trade, but there’s also a recognition that economic fundamentals remain strong, which could provide the kind of sturdy backdrop needed to support risk assets going forward,” said Emily Roland, head of capital markets research at John Hancock Investments.
“The fact that recent declines have essentially been mild may be a sign that investors don’t believe we’re headed for a full-out trade war. Rhetoric could still escalate, having a meaningful impact on businesses and consumers, but we’re not there yet. We’re still in a wait-and-see mode,” she said. “There will be further negotiations, and we’ll likely continue seeing choppiness as this gets hammered out.”
What are other markets doing?
Gold futures were little changed and on pace for a weekly drop. European stocks mostly gained as Greece got debt relief that will help it exit a bailout program, while Asian markets finished mixed.
The ICE U.S. Dollar Index slipped 0.1%.
Which stocks are in focus?
Energy stocks rallied in early trading. Exxon Mobil Corp. jumped 2.6% while Chevron Corp. was up 2.9%. Both were among the biggest gainers on the Dow. Occidental Petroleum Corp. rose 1.5%, Halliburton Co. added 4.9% and Marathon Oil Corp. surged 8.2%.
Shares in Red Hat Inc. fell 12% a day after the software company gave a softer-than-anticipated quarterly outlook.
BlackBerry Ltd. reported adjusted first-quarter earnings that topped expectations, though revenue fell short of analyst forecasts. U.S.-listed shares sank 8.9%.
Shares in used-car seller CarMax Inc. gained 13% after it reported first-quarter earnings that topped expectations.
All of the banks tested by the Federal Reserve met the regulatory minimums for capital after being tested for the impact of a severe recession, the central bank announced Thursday. The Financial Select Sector SPDR Fund rose 0.4%.
Which economic reports are in focus?
Data provider Markit released June data on both the manufacturing and services sectors. The read on manufacturing fell to 54.6 from 56.4, while the services gauge dipped to 56.5 from 56.8.
Check out: MarketWatch’s Economic Calendar