- Deere up after raising FY profit forecast
- Bitcoin reverses course, crypto stocks fall
- Indexes: Dow rises 0.74%, S&P up 0.31%, Nasdaq dips 0.15%
May 21 (Reuters) - The S&P 500 and the Dow rose on Friday, extending a recovery from the previous session, as strong U.S. factory and services activity surveys lifted the mood at the end of a volatile week of trading.
Helping the Dow outperform was Boeing (BA.N), which added about 3% as industry sources said the planemaker has drawn up preliminary plans for a fresh sprint in 737 MAX output to as many as 42 jets a month in fall 2022. read more
IHS Markit's data showed U.S. business activity picked up in May amid strong domestic demand, but backlogs of uncompleted work are piling up as manufacturers struggle to find raw materials and labor. read more
Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market.
Despite weakness on Friday, the Nasdaq is on course to snap a four-week losing streak as investors this week returned to tech-related mega-cap shares,which recently took the biggest hit on inflation worries.
"The inflation fears are overblown and it's not that bad as the market has been pricing in and the one indicator that we can see are signs of moderation in commodities," said Thomas Hayes, chairman and managing member at hedge fund Great Hill Capital LLC.
"Institutional investors took a lot of money out due to inflation fears but that money will start flowing into tech stocks as those fears moderate."
Bitcoin dropped after China's Vice Premier Liu He said his government will crack down on the virtual currency's mining and trading activities. Cryptocurrency-related stocks Coinbase Global (COIN.O), Riot Blockchain (RIOT.O) and Marathon Digital Holdings (MARA.O)erased early gains to fall between 2.6% and 4.7%. read more
At 11:42 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 252.30 points, or 0.74%, at 34,336.45 and the S&P 500 (.SPX) was up 12.80 points, or 0.31%, at 4,171.92. The Nasdaq Composite (.IXIC) was down 20.33 points, or 0.15%, at 13,515.41.
VF Corp (VFC.N) slumped 7.3% after Vans and North Face parent's quarterly profit fell short of estimates.
Advancing issues outnumbered decliners by a 2.20-to-1 ratio on the NYSE and by a 1.57-to-1 ratio on the Nasdaq.
The S&P index recorded 24 new 52-week highs and no new low, while the Nasdaq recorded 97 new highs and 13 new lows.
Our Standards: The Thomson Reuters Trust Principles.