Market report

Stocks drift lower in light trading

NEW YORK -- The stock market capped a quiet week of trading on a down note.

Major indexes fell from the start Friday as oil drillers and other energy-related companies followed oil prices lower. Stocks spent much of the rest of the day drifting between losses and gains as investors considered a mixed bag of corporate earnings and a slight increase in inflation.

The Standard & Poor's 500 index closed down 4.76 points, or 0.2 percent, to 2,126.06. The Dow Jones industrial average fell 53.72 points, or 0.3 percent, to 18,232.02. The Nasdaq composite edged down 1.43 points to 5,089.36.

Trading was light ahead of the Memorial Day weekend in the U.S. Just 2.5 billion shares changed hands on the New York Stock Exchange, three-quarters of the normal level.

Nine of the 10 industry sectors of the S&P 500 were lower, led by a 0.8 percent drop in telecommunications stocks.

Among stocks making big gains, Deere & Co. rose $3.89, or 4.3 percent, to $93.35 after the equipment-maker beat analysts' estimates for its latest quarterly earnings.

Campbell Soup rose 98 cents, or 2 percent, to $47.91 after reporting better-than-expected results.

In economic news, the Labor Department reported that inflation rose 0.1 percent in April. The report also noted that core inflation, which excludes volatile food and energy prices, climbed 0.3 percent, the biggest one-month increase in more than two years.

"We don't think inflation is really a problem, but the uptick is a cover for the Fed to do what it wants to do anyway: Get off zero rates," said Jim McDonald, chief investment strategist at Northern Trust.

Later in the day, Federal Reserve Chairman Janet Yellen said in a speech that she expected the Fed to begin raising rates later this year if the job market improves. But she cautioned that the economy is still facing challenges, including disappointing wage growth and too many people working part time.

Despite the drop for the day, the S&P 500 still closed up for the week, its third weekly gain in a row. The index has closed at record highs recently, although the gains have been tiny as investors fret over unimpressive earnings and an uncertain global economy.

Overseas, the Shanghai Composite Index jumped 2.8 percent to close at its highest level since 2008. Investors are betting that the economic stimulus that has powered the rally will continue after several poor indicators, including a disappointing manufacturing index Thursday.

Markets in Europe were mixed. Germany's DAX slipped 0.4 percent. Britain's FTSE 100 rose 0.3 percent.

Benchmark U.S. crude fell $1 to close at $59.72 a barrel in New York as traders worried about supplies of oil outstripping demand. U.S. oil finished the week between $59 and $60 for the fourth straight week. Brent crude, a benchmark for international oil used by many U.S. refineries, fell $1.17 to close at $65.37 a barrel in London.

The national average retail price of gasoline reached its high for the year of $2.74 a gallon just before the Memorial Day weekend, according to AAA, although it remains nearly $1 cheaper than last year at this time.

Precious and industrial metals futures closed little changed. Gold edged down 10 cents to $1,204 an ounce, silver rose 2 cents to $17.13 an ounce, and copper fell 4 cents to $2.81 a pound.

Business on 05/23/2015

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