(Bloomberg) -- U.S. stocks rose as investors digested this week’s initial burst of corporate earnings, economic data and coronavirus news. The dollar weakened and crude oil declined.
The S&P 500 withstood a late session swoon to register its third consecutive weekly gain for the first time since December. Trading volume was about 25% below the average over the prior 30 days. Intel Corp. and Cisco Systems Inc. helped the Nasdaq 100 avoid its first back-to-back daily decline since mid-May. A University of Michigan survey showed U.S. consumer sentiment slumped in July, missing all forecasts, after the resurgent coronavirus nearly wiped out any emerging optimism around reopenings.
“This pandemic is still vexing everybody,” said Lori Heinel, deputy global chief investment officer at State Street Global Advisors. “Until we have a clearer path toward more effective treatments or a clearer path to vaccination, we should just expect that we’re going to continue to have volatility.”
Investors were closely watching to see how the broader technology sector reacted to Netflix Corp.’s weaker than expected outlook. The Nasdaq Composite has managed to go two months without posting back-to-back declines, but that’s now under threat as investors question the resilience of tech’s searing rally.
Netflix Puts a Record Run of Resilience at Risk in Nasdaq
“We’re going to continue to see a bifurcated economy, bifurcated market, unless we get rid of this virus and everything goes away for some reason,” said David Yepez, a money manager at Exencial Wealth Advisors. “If we find a vaccine and, you know, that will be the point where value will start to outperform.”
In Europe, traders are holding out hope for policy makers to conclude a stimulus pact. German Chancellor Angela Merkel raised doubts on Friday that European Union leaders would be able to agree this week on a landmark 750 billion-euro ($855 billion) recovery fund to help their economies heal from the pandemic. Positive earnings from Daimler AG and Ericsson AB pulled carmakers and tech stocks higher.
Elsewhere, Chinese shares were steady after a more than 4% slide on Thursday, with investors assessing moves by policy makers to tame signs of exuberance.
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