US shares jumped as soaring shares of Intel Corp and corporate deals counteracted fears that mayhem in Iraq will stand in the way of supplies.
Intel hit its highest point in three years after adjusting upwards its sales outlook for the second quarter and the full year. Express Inc added 21% after Sycamore Partners declared intention to acquire the clothing firm. Priceline Group Inc. lost 3% after reaching a deal with OpenTable Inc to buy the company for $2.6 billion in cash. Citigroup Inc. declined 1.4% after the pronouncement by the US Department of Justice that it would ask for $10 billion as part of an investigation into mortgage-supported bond sales.
The S&P 500 advanced 0.3% to 1,936.15 as of 4.pm in New York, cutting its first weekly loss in a month to 0.7%. The stocks gauge almost retreated from its rise towards the end of trading before hitting its first jump in four days. The Dow Jones Industrial Average added 41.55 points or 0.3% to 16,775.74. Around 5.1 billion shares were traded on US exchanges on Friday, 18% lower than the average for three months.
“There’s a lot of potential uncertainty surrounding the situation in Iraq. Any time you have conflict around the world, and especially there, where we’ve withdrawn troops from just in the past year, it can cause some nervousness,” Joe Bell of Schaeffer’s Investment Research Inc in Cincinnati told Bloomberg by phone.
The S&P 500’s advance on Friday ended its longest losing run in two months. The gauge has gone up 6.6% after a low on April as economic data showed improvement from the effect of the unfavorable weather at the beginning of the year.
According to MarketWatch, the Nasdaq Composite closed the day up 0.3% or 13.02 points to 16,775.58.
Islamic militants made gains on Friday, marching into two towns in northeastern Iraq.
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