* Dow, S&P 500 end at record highs, buoyed by banks'
* Boeing's stock falls after Dreamliner fire at Heathrow
* UPS drops after lowering profit outlook
* Dow up 0.02 pct; S&P 500 up 0.3 pct; Nasdaq up 0.6 pct
By Angela Moon
NEW YORK, July 12 U.S. stocks advanced on
Friday, supported by banks' strong earnings, but Boeing limited
the Dow's gain after an airplane fire in London.
Both the Dow Jones industrial average and the S&P 500
index ended Friday's session at record closing highs,
even though the point and percentage gains for the day were
slim. The Nasdaq closed at a 52-week high.
The S&P 500 scored its best weekly performance since January
and a third consecutive week of gains.
Financial stocks were the day's biggest gainers, with the
S&P 500 financial sector index up 0.8 percent.
"The momentum has been incredibly strong ... At some point,
a breather or some sort of consolidation makes sense," said Joe
Bell, senior equity strategist at Schaeffer's Investment
Research in Cincinnati.
Over the past three weeks, the benchmark S&P 500 has erased
the losses of nearly 6 percent from the selloff triggered by
Federal Reserve Chairman Ben Bernanke in late May, when he first
raised the prospect of trimming the central bank's $85 billion
in monthly bond purchases. Since then, the market has been
getting reassurance from Bernanke and other Fed officials that
the U.S. central bank will keep monetary policy loose for some
"For now, it seems like some of the comments made this past
week have settled the market back into place," Bell said.
"Hopefully we'll be back to paying more attention to the
earnings reports," which will probably take the spotlight in the
next few weeks, he added.
Shares of Wells Fargo & Co, the biggest U.S.
mortgage lender, jumped 1.8 percent to $42.63 after the company
posted quarterly results that topped expectations.
Citigroup rose 1.5 percent
to $50.81. Bank of America climbed 2 percent to $13.78
and ranked among the most actively traded stocks in both the Dow
and the S&P 500.
JPMorgan Chase & Co, the largest U.S. bank by
assets, reported a 31 percent jump in quarterly profits. The
stock, however, slipped 0.3 percent to close at $54.97, giving
up an earlier gain of more than 1 percent. The stock had traded
higher for most of the day.
The Dow Jones industrial average edged up 3.38
points, or 0.02 percent, to end at 15,464.30, a record closing
high. The Standard & Poor's 500 Index rose 5.17 points,
or 0.31 percent, to finish at 1,680.19, also a closing high. The
Nasdaq Composite Index gained 21.78 points, or 0.61
percent, to close at 3,600.08, a 52-week high.
For the week, the Dow rose 2.2 percent, while the S&P 500
gained 3 percent and the Nasdaq climbed 3.5 percent.
In Friday's session, Boeing was the Dow's biggest
decliner. Boeing shares fell 4.7 percent to $101.87 after
a Dreamliner operated by Ethiopian Airlines caught fire at
Britain's Heathrow airport on Friday.
Shares of Dreamliner component manufacturers also slipped,
including Honeywell International, off 0.2 percent at
$82.37, and Spirit Aerosystems, down 2.3 percent at
United Parcel Service was among the biggest losers
in the S&P 500, sliding 5.8 percent to $86.12, after the world's
No.1 package delivery company said second-quarter profit would
fall short of expectations. Shares of rival FedEx Corp
fell 2 percent to $102.29.
UPS weighed on the S&P industrial sector index,
which fell 0.6 percent.
Analysts expect S&P 500 companies' second-quarter earnings
to have grown 2.8 percent from a year earlier, with revenue up
1.5 percent, data from Thomson Reuters showed.
U.S.-listed shares of Infosys jumped 4.8 percent to
$46.17 after the company reported quarterly results and
maintained its revenue growth forecast.
On the economic front, the Thomson Reuters/University of
Michigan's preliminary reading for July on the consumer
sentiment index was 83.9, down from 84.1 in June and shy of
forecasts for 85.
About 5.4 billion shares changed hands on the New York Stock
Exchange, the Nasdaq and NYSE MKT, below the 6.4 billion daily
average so far this year.
On the NYSE, advancers narrowly beat decliners with 1,488
stocks rising and 1,478 shares falling. On the Nasdaq, nearly 14
stocks rose for every 11 that fell.