* 'Quadruple witching' may boost volume, volatility
* Oracle slumps, Carmax surges after results
* Dow up 0.1 pct; S&P 500 up 0.1 pct; Nasdaq flat
(Updates to afternoon)
By Angela Moon
NEW YORK, June 20 U.S. stocks rose on Friday,
pushing the Dow and the S&P 500 to record levels and setting the
benchmark index up to score its fourth weekly advance over the
But trading is expected to become volatile as the session
progresses. Friday marks a "quadruple witching" day - the
expiration of stock options, index options, index futures and
single-stock futures - as traders close hedging positions or
roll them over at the last minute.
The six-day run of gains for the S&P 500 index was its
longest winning streak since mid-April. For the week so far, the
S&P 500 has advanced 1.3 percent, while the Dow has
gained 1.1 percent and the Nasdaq has added 1.2 percent.
"I haven't been concerned for weeks, but I'm becoming a bit
concerned now with where the market is, especially with many
indicators hitting levels that are contrary to the normal
reading," said Randy Frederick, managing director of active
trading and derivatives for Charles Schwab in Austin, Texas.
Among the most notable indicators were the correlation of
the CBOE Volatility Index, known as the VIX, and the S&P
500. The VIX usually moves inversely to the performance of the
S&P 500. The fear gauge is near its lowest since February 2007
while the S&P 500 is at an all-time high.
"I'm expecting not a big correction like 10 percent or so,
but a good 3 to 4 percent adjustment next week won't be a
surprise," Frederick said.
The Dow Jones industrial average rose 21.67 points or
0.13 percent, to 16,943.13, after touching a record intraday
high of 16,978.02. The S&P 500 gained 1.34 points or 0.07
percent, to 1,960.82, after climbing to a record intraday high
of 1,963.91. The Nasdaq Composite dropped 1.77 points or
0.04 percent, to 4,357.56.
Oracle Corp shares slid 4.4 percent to $40.64 and
ranked among the biggest drags on the S&P 500 after the software
maker posted fourth-quarter results that disappointed investors
looking for more progress against rivals selling web-based
But Carmax surged 17.9 percent to $53.40. The stock
was the S&P 500's best performer after the used-vehicle retailer
reported first-quarter earnings that topped analysts'
Darden Restaurants fell 2.6 percent to $48.23 after
the chain restaurant operator reported a much
lower-than-expected quarterly profit as costs soared and sales
at its flagship Olive Garden restaurant chain
Owens Corning tumbled 5.4 percent to $39.09 after the
company lowered its 2014 earnings forecast, citing weakness in
its roofing business.
The stock of midstream energy company Targa Resources Corp
dropped 5 percent to $143.12 after Targa said it was no
longer in discussions with Energy Transfer Equity LP,
the pipeline company controlled by billionaire Kelcy Warren,
regarding a deal. Shares of Targa Resource Partners,
the company's energy logistics operating unit, sank 10.5 percent
(Editing by Jan Paschal)