Modest gains for US stocks on Friday

Upbeat U.S. economic data offset overseas worries

US stocks at Wall Street cheered on Friday, 29 August 2014 and managed to offset the geopolitical concerns and the China survey. U.S. shares climbed ahead of a three-day weekend for Monday's U.S. Labor Day holiday. U.S. stocks closed with modest gains on Friday in light trading, building on weekly and monthly advances, as largely upbeat U.S. economic data offset overseas worries.

The Dow Jones Industrial Average gained 18.88 points, or 0.1%, to end at 17,098.45. The Nasdaq Composite tacked on 22.58 points, or 0.5%, to 4,580.27. The S&P 500 rose 6.63 points, or 0.3%, to close at 2,003.37.

All ten sectors registered gains with heavily-weighted technology, health care and financials leading the gains.

AT Wall Street, readings on consumer sentiment and Chicago-area business conditions surpassed expectations, though the Commerce Department reported an unexpected dip in consumer spending. In overseas news, Russian President Vladimir Putin lashed out at Ukraine, and U.K. authorities warned a terror attack is highly likely.

Equities on Friday continued to be buoyed by Thursday's upward revision to U.S. second-quarter economic growth. The revision was particularly indicative of stronger U.S. oil demand. On Friday, economic reports showed a drop in consumer spending but a higher-than-expected consumer-sentiment index.

The lack of activity during the week was a function of some participants being away on vacation, while many others opted to stick to the sidelines ahead of a three-day weekend in the U.S. that could feature new developments on the geopolitical front.

Economic data at Wall Street included personal income/spending data, Chicago PMI, and the Michigan Sentiment survey. Personal income increased 0.2% in July following an upwardly revised 0.5% (from 0.4%) gain in June, while the consensus expected an increase of 0.3%. The increase in July income was in-line with the reported 0.2% increase in aggregate earnings from the previously released employment data.

Personal spending fell 0.1% in July after increasing 0.4% in June, while the consensus expected an increase of 0.1%. The Chicago PMI for August rose to 55.6 from 52.6, while the consensus expected an increase to 54.8. The University of Michigan Consumer Sentiment report for August was revised up to 82.5 from 79.2 in the final reading, while the consensus expected a revision to 80.0.

Crude-oil futures rose on Friday, 29 August 2014 supported by positive U.S. economic data and escalating tensions between Russia and Ukraine, but ongoing concerns about plentiful supplies and weak demand kept a lid on prices and led to a second straight monthly loss.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in October rose $1.41, or 1.5%, to end at $95.96 a barrel. Prices climbed 2.5% over the week but still lost 2.3% in August.

Gold futures on Friday, 29 aUGUST 2014 retreated from their highest settlement price in a week, slipping ahead of the holiday weekend as investors await another batch of U.S. economic data.

Gold for December delivery was down $4.40, or 0.3%, to $1,286.00 an ounce. Bullion rose 0.4% in August, and gained 0.6% on the week. September silver lost 9 cents, or 0.5%, to $19.44 an ounce.

Bond and equity markets will be closed on Monday for Labor Day. On Tuesday, the ISM Index for August and July Construction Spending will both be released at 10:00 ET.

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