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Thursday's advance came after the European
Central Bank detailed a bond-buying program to boost the
region's sagging economy and fight deflation. The program was
larger than expected and will last through September 2016.
The rally took the S&P 500 above its 50-day moving average, a
metric of near-term momentum that the benchmark index hasn't
closed above since Jan. 8.
With the ECB stimulus details known, U.S. corporate earnings
will likely be the primary driver of trading over the next few
weeks. With 15 percent of S&P 500 companies having reported,
73.7 percent have topped earnings expectations while 53.9
percent have beaten on revenue, according to Thomson Reuters
data. That compares with the long-term average of 63 percent for
earnings and 61 percent for revenue.
General Electric Co <GE.N> posted a rise in fourth-quarter
earnings, boosted by its power-generating turbines and jet
engines divisions, though sales fell in its oil and gas unit.
Shares of the Dow component rose 0.5 percent before the bell.
Starbucks Corp <SBUX.O> rose in premarket trading a day after
the coffee chain reported same-store sales growth that was
better than expected in its Americas region.
Crude oil prices will continue to be in focus, with additional
uncertainty coming in the wake of the death of Saudi Arabia's
King Abdullah. While the country's oil policies are expected to
be unchanged, the commodity has been extremely volatile of late,
with its value dropping by more than half over the past six
months. Oil rose 1 percent Friday but is on track for its 15th
negative week out of the past 17.
While the drop in crude prices is seen pressuring the profits of
energy shares this quarter, it could lift stocks in the
transportation, retail and industrial sectors.
For the week, the Dow is up 1.7 percent, the S&P 500 is up 2.2
percent and the Nasdaq is up 2.5 percent. All three are coming
off three straight negative weeks.
(Editing by Bernadette Baum)
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