U.S. stocks gain as U.S. rules out troops in Iraq; Dow rises 0.25%


Investing.com -

Investing.com - U.S. stocks rose on Friday after President Barack Obama ruled out sending troops into Iraq to help quell a rebellion there, though concerns that insurgents will arrive at the outskirts of Baghdad later in a matter of days capped gains.

At the close of U.S. trading, the Dow 30 rose 0.25%, the S&P 500 index rose 0.31%, while the NASDAQ Composite index rose 0.30%.

The Volatility S&P 500 index, which measures the outlook for market volatility, was down 3.03% at 12.18.

Wall Street continued to track a rebellion in Iraq led by a Sunni Islamist group that threatened to take Baghdad after capturing key cities elsewhere in the country.

Investors breathed a sigh of relief, however, after U.S. President Barack Obama said he won't sent troops to Iraq and added oil continues to flow normally out of the country, which boosted stock prices, though concerns insurgents may reach the outskirts of Baghdad before the U.S. can provide logistical support watered down gains as did soft data.

In a preliminary report, the Thomson Reuters/University of Michigan consumer sentiment index fell to 81.2 this month from 81.9 in May, whose figure was revised up from a previously estimated reading of 81.8. Analysts had expected the index to rise to 83.0 in June.

Also on Friday, official data showed that U.S. producer price inflation fell 0.2% in May, confounding expectations for a 0.1% rise, after a 0.6% increase the previous month.

Core producer price inflation, which excludes food, energy and trade, slipped 0.1% last month, compared to expectations for an increase of 0.1%, after a 0.5% rise in April.

In other news, Priceline Group said it would acquire the online restaurant reservation service OpenTable Inc (NASDAQ:OPEN) for $2.6 billion.

Tech shares rallied after chipmaker Intel Corporation (NASDAQ:INTC) hiked its second-quarter revenue outlook.

Leading Dow Jones Industrial Average performers included Intel Corporation (NASDAQ:INTC), up 6.81%, Microsoft Corporation (NASDAQ:MSFT), up 1.59%, and Exxon Mobil Corporation (NYSE:XOM), up 0.93%.

The Dow Jones Industrial Average's worst performers included Wal-Mart Stores Inc (NYSE:WMT), down 0.60%, Home Depot Inc (NYSE:HD), down 0.52%, and UnitedHealth Group Incorporated (NYSE:UNH), down 0.35%.

European indices, meanwhile, ended the day largely lower.

After the close of European trade, the DJ Euro Stoxx 50 rose 0.01%, France's CAC 40 fell 0.24%, while Germany's DAX fell 0.26%. Meanwhile, in the U.K. the FTSE 100 fell 0.95%.

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