US stocks fluctuate, as gains in energy sector counterbalance Swiss shock
U.S. stocks wobble on Friday, after a five-day
decline in the Standard & Poor’s 500 Index, as gains in energy
shares counterbalance fallout from the Swiss currency shock and
investors assessed the latest batch of economic and earnings
reports.
Energy companies in the S&P 500 jumped 1.8 percent, making Exxon Mobil Corp. and Chevron Corp. rally more than 1
percent.
Trading in FXCM Inc. was delayed after the largest U.S. retail
foreign-exchange brokerage said it may have breached some
capital requirements after clients got caught out by the franc’s
surge.
Goldman Sachs Group Inc. lost 1.9 percent after posting the lowest annual trading revenue since 2005. Intel Corp. fell 1.5 percent after projecting sales that may fall short of analysts’ estimates.
The S&P 500 rose less than 0.1 percent to 1,992.90 at 10:06
a.m. in New York. The benchmark index has tumbled 2.5 percent
for the week. The Dow Jones Industrial Average lost 45.15
points, or 0.3 percent, to 17,275.56.
The Russell 2000 Index of
smaller companies gained 0.6 percent.
Trading in S&P 500 companies was 59 percent above the 30-day average for this time of the day.
Data today showed consumer confidence jumped in January to
the highest level in 11 years as steady job gains and plunging
gas prices brightened the outlook for U.S. households. Another
report showed the cost of living declined by the most in six
years amid the plunge in energy costs, increasing speculation
the Federal Reserve will remain patient in its plans to raise
interest rates.
Switzerland’s central bank surprised markets Thursday by removing its cap on the franc versus the euro, sending the franc surging as much as 41 percent versus the regional currency.
The Swiss National Bank decided to remove its currency cap, set in September 2011 to shield the economy from the euro area’s debt crisis, because it was no longer “sustainable,” central bank President Thomas Jordan said. The move is preempting possible pressure on the franc should the European Central Bank announce a government-bond purchase program, or quantitative easing, at its Jan. 22 meeting. U.S. stock futures fell earlier amid fallout from the Swiss currency shock.
