It was a mixed finish on Wall Street on Friday with the Dow and the S&P only slightly higher as fresh data showed the economy shrank less than expected in the second quarter, lifting investor optimism. The Nasdaq however closed lower. For the month of July the Dow was up 8.6%, making its best gain for July in 20 years. The S&P was up 7.4% and the Nasdaq up 7.8%
On Friday, the Dow Jones industrial average rose 17 points to 9,172. The S&P500 Index was steady at 987 and the NASDAQ lost 6 points to 1,979.
In economic news: The latest GDP figures show the pace of economic decline slowed in the second quarter, raising hopes that the recession is winding down. GDP, which measures economic activity, shrank at a 1% annual rate in the April to June period. The result reflects a smaller fall in exports as the result of higher consumer prices and more government spending.
In other economic news, the Chicago PMI, which is a regional read on manufacturing, rose to 43.4 in July from 39.9 in June.
In company news: Chevron (NYSE:CVN) shares gained 2.61% to $69.47. The second-largest US oil company reported a drop in profit as oil and gas prices fell from a sharp run-up a year ago and the economic downturn hurt demand for fuel.
Walt Disney (NYSE:DIS) shares are down 4.2% to $25.12. Investors largely reacted to the entertainment company’s news after the bell on Thursday of a drop in earnings due to the slowdown in advertising and consumer spending however its results managed to beat Wall Street's forecasts.
First Solar (NYSE:FSLR) shares lost 11.04% to $154.39. Just a day after the solar panel maker logged a quarterly profit that surpassed expectations, its shares suffered after the company said it would start offering rebates to defend its position in Germany. Various brokerages including Credit Suisse cut their ratings on the stock on Friday.
Ford (NYSE:F) shares gained 8.25% to $8, on news that US lawmakers were likely to approve $2 billion in new funding to a cash-for-clunkers program. The Senate will vote on the bill Monday. The program is seen as having already started to help lift auto sales.
Checking the NASDAQ Top 100: Leading the charge higher was Flextronics with a 5.98% gain to $5.32. While Liberty Media and Hansen Natural also climbed higher. The worst performing stock was First Solar, followed by Genzyme and O’Reilly Auto.
