An unexpected rise in existing home sales and merger speculation capped a positive week for the major indexesStocks finished a volatile week on a positive note, thanks to an unexpected rise in existing home sales, merger speculation and Thursday's announcement from private equity firm Blackstone Group about its plans for a $4 billion IPO. But the market is still without a clear picture as to where the economy is headed -- and if interest rates are about to rise or fall, notes Standard & Poor's MarketScope.
The Dow Jones industrial average rose 19.87 points, or 0.16%, to 12,481.01, buoyed by General Motors (GM), which was up 5.5% on enthusiasm in the auto industry over a possible buyout bid for Chrysler (DCX). The broader Standard & Poor's 500 index edged up 1.57 points, or 0.05%, to 1,436.11. The tech-heavy Nasdaq composite fell 2.81 points, or 0.11%, to 2,448.93, held down by Amgen (AMGN) after it halted trials of a cancer drug.
In the energy markets Friday, May West Texas Intermediate crude futures rose 60 cents to $62.29 a barrel. Prices jumped after Britain said Iranian naval vessels seized 15 British sailors and marines in Iraqi waters and gunmen kidnapped three foreigners in southern Nigeria, according to the Associated Press. Also, gasoline futures surged to fresh seven-month highs of $2.02 a gallon during trading Friday, notes Action Economics.
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