Stocks ended mixed Friday as investors weighed better-than-expected economic data against the possibility of higher interest rates.
The Nasdaq edged up 0.2%, but the Dow Jones industrial average and the S&P 500 slipped 0.3% and 0.2%, respectively. Volume in the stock market today was up on both major exchanges, according to preliminary data.
Oil drillers were among the day's best performers, buoyed by Transocean (RIG) and Rowan (RDC), which jumped 5% and 10% respectively.
Transocean, a provider of offshore contract drilling, on Thursday posted a 77% gain in Q4 profit to $1.68 a share, easily beating Wall Street forecasts. Revenue slumped 17% to $1.9 billion.
The strong profit gain "reflects the company’s cost cutting measures to withstand weak drillship demand owing to a persistent weakness in commodity prices," Zacks Equity Research said Thursday.
Rowan announced early Friday that Q4 profit rose 7% to 95 cents a share on a 4% decline in revenue to $535.8 million. Both figures beat views.
Utility stocks fell as better-than-expected GDP and consumer spending data released Friday boosted expectations that the Federal Reserve will raise interest rates in March. Higher rates would increase utilities' financing costs. American Electric Power (AEP) fell more than 3%, sinking below a 63.73 buy point that it cleared Thursday.
Utility stocks have paced the market this year as investors sought a safe haven from turmoil in commodity and financial markets.
Most IBD 50 stocks ended lower. Universal Display (OLED) plunged 12% after the maker of light-emitting diodes for flat-panel displays posted a 39% gain in Q4 profit to 39 cents a share, well below analysts' forecasts. Revenue rose 11% to $62.3 million, also well below views.
The stock sliced through its 10-week and 40-week moving averages.
