Wall Street ended an indecisive week on a quiet note yesterday, with investors half-heartedly picking up shares in response to strong sales from McDonald’s.
Tech stocks dropped on a profit warning from Nvidia.
Analysts said investors were refraining from major commitments, with many opting to wait for guidance on the economic outlook when the Federal Reserve’s Open Market Committee meets next Tuesday.
“We had good news from McDonald’s and a couple of upgrades ... such as Computer Associates, so the market has a better tone to it,” said Todd Clark, head of listed equity trading at Wells Fargo Securities. “But we’re having a classic summer Friday without a whole lot of impetus.”
The Dow Jones industrial average closed up 64.64, or 0.7%, at 9,191.09.
The broader market finished mixed. The Nasdaq composite index fell 8.15, or 0.5%, to 1,644.03. The Standard & Poor’s 500 index rose 3.47, or 0.4%, to 977.59.
For the week, the three main gauges also ended mixed, with the Dow gaining 0.4%, the Nasdaq losing 4.2%, and the S&P declining 0.3%.
McDonald’s advanced $1.83, or 8.3%, to 23.89 after the fast-food giant said July sales in its US business rose 9.9%, amid stronger demand for its Big Mac sandwich and breakfast foods.
Computer Associates rose 57 cents to $24.17 after Deutsche Securities upgraded the company’s stock to “buy” from ”hold”.
Teva Pharmaceutical Industries gained 31 cents to $55.07 after the Food and Drug Administration gave the biotech company tentative approval to make a generic form of the epilepsy treatment Neurontin.
Decliners included Nvidia, which tumbled $3.80, or 19.7%, to $15.50, after the company reported a larger quarterly profit but said higher technology costs were hurting gross margins it also cut its third-quarter outlook.
Intel fell 41 cents to $23.58, while AT&T lost 21 cents to $20.91.
Advancing issues outnumbered decliners about 9 to 5 on the New York Stock Exchange. Volume was light.
The Russell 2000 index, which tracks smaller company stocks, edged up 0.17, or 0.04%, to 453.94.