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Wall Street rises, investors eye Fed decision, summit fears ebb

Reuters  |  NEW YORK 

By Sinead Carew

NEW YORK (Reuters) - U.S. stock indexes closed higher on Friday as investors shrugged off concerns about global trade tensions but trading volume was relatively light ahead of a busy week of central meetings.

The 500 stayed in positive territory in the afternoon after reversing losses in the early afternoon with its biggest boosts coming from the health care and consumer staples sectors.

Investors appeared to put aside worries about U.S. relations with its biggest trading partners. major nations started what was expected to be a tense meeting after U.S. Donald Trump's decision to impose tariffs on and aluminium imports from Canada, the and

Expectations for any breakthroughs at the two-day meeting in La Malbaie, Quebec, were low. "It's highly unlikely there will be a final communique," a said on condition of anonymity.[nL2N1TA0IJ]

But some investors appeared hesitant ahead of U.S. and meetings and a North Korea-U.S. summit set for June 12.

"There's a lot for investors to digest but when you parse through the noise there's still a lot of strength in the and that's what investors keep gravitating to," said Carol Schleif, Deputy Chief Investment Officer, in

Specifically investors were focused on expectations for strong growth among U.S. corporations, according to Katrina Lamb, at MV Financial, in Bethesda,

She cited expectations for sales growth of more than 7 percent this year. Wall Street estimates 2018 earnings growth of 22.2 percent, according to I/B/E/S.

"The math looks really good in terms of the relation between price and earnings and sales," said Lamb. "This is a perfectly good time to be long the market."

The <.DJI> rose 75.12 points, or 0.3 percent, to 25,316.53, the 500 <.SPX> gained 8.61 points, or 0.31 percent, to 2,778.98 and the <.IXIC> added 10.44 points, or 0.14 percent, to 7,645.51.

For the week, the rose 1.62 percent while the Dow added 2.76 percent and the Nasdaq gained 1.21 percent.

The consumer staples index <.SPLRCS> was the biggest percentage gainer of the S&P's 11 major sectors, with a 1.3 percent advance. Its biggest drivers were which continued its rally from the previous day, rising 1.9 percent, and , which rose 2.6 percent after it announced a 6.5 percent dividend hike.

, another staples company, rose 4.7 percent after the said it was "highly likely" it would raise prices later in the year.

The Healthcare index <.SPXHC> was the S&P's boost with a 0.7 percent gain and its biggest was , which rose 4.3 percent.

The was barely positive with a 0.03 percent gain. Dragging on the sector was and its suppliers which were down following a report that the maker was planning to produce fewer phones this year. Apple was last down 1 percent.

In the quietest trading day since May 25, 6.05 billion shares changed hands on U.S. exchanges on Friday, compared to the 6.6 billion average for the last 20 days.

The Federal Reserve is widely expected to announce an increase interest rates in its post-meeting statement on Wednesday and investors will be watching for signals from on its plans for the rest of the year.

U.S. investors are also keeping an eye on as the European Central Bank's has said policymakers meeting on June 14 will debate whether to end bond purchases this year.

An unprecedented meeting between Trump and North Korea's is also scheduled for June 12 in

Advancing issues outnumbered declining ones on the NYSE by a 1.42-to-1 ratio; on Nasdaq, a 1.09-to-1 ratio favoured advancers.

The posted 25 new 52-week highs and no new lows; the recorded 143 new highs and 20 new lows.

(Additional reporting by in New York, Ankur Banerjee and Parikshit Mishra in Bengaluru; Additional reporting by Aparajita Saxena; Editing by and Chizu Nomiyama)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, June 09 2018. 06:41 IST