US Stocks Climb in Early Trading

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US Stocks Climb in Early Trading

US stocks were higher on Friday with investors attempting to break the five-day losing streak that has put the major indexes on track for the third straight week of losses.

The gains are tempered by turbulence in global currency markets after the Swiss National Bank’s surprising move to stop keeping its currency artificially cheap.

According to ABC News, the Dow Jones Industrial Average climbed 0.2% or 37 points to 17,356 while the Standard & Poor’s 500 Index gained 0.3% or six points to 1,999. The Nasdaq Composite climbed 0.4% or 19 points to 4,590.

The market has been marked by volatility so far this year as the Dow has closed seven times with a triple-digit move and five of them to the downside.

Investors are still cautious after disappointing earnings report from Goldman Sachs and continued fallout from the Swiss National Bank’s shock decision on Thursday to stop keeping its currency cheap.

The Swiss National Bank said on Thursday that it had decided to ditch the increasingly expensive policy to cap the rise on the franc.

Chief market analyst at CMC Markets, Ric Spooner was quoted by USA Today as having said, “At least for the short term the Swiss Bank action has opened up a new front of financial markets risk.”

Shares in Europe traded mostly higher but Swiss stocks dropped over 5%. The Nikkei 225 of Japan dropped 1.4% to 16,864.16 and the Hang Seng Index of Hong Kong dropped 1% to 24,103.52. The FTSE of Britain climbed 0.5% and the DAX of Germany Index added 0.5%.

On Friday, the dollar edged closer against the yen at $116.328 and the euro saw some slight gains against the dollar at $1.1632.

Newfield Exploration shares climbed 2.5% and the price of the benchmark US crude oil climbed 2% or 97 cents to $47.22 per barrel.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com