By Dow Jones Business News, October 04, 2013, 04:45:00 PM EDT
--Stocks edge higher; Dow and S&P 500 finish lower for a second week
--Some investors optimistic that Washington may see progress over the weekend
--Monthly jobs report postponed as government shutdown continues
By Kaitlyn Kiernan and Matt Jarzemsky
U.S. stocks bounced Friday, but finished lower for a second-straight week, amid preoccupation with the continued
shutdown in Washington.
The Dow Jones Industrial Average added 76.10 points, or 0.51%, to 15072.58, but finished the week 1.2% lower. The
blue-chip index has fallen nine of the past 11 sessions.
The S&P 500 index rose 11.84 points, or 0.71%, to 1690.50, materials and health-care stocks led gains in all 10
industry sectors. The Nasdaq Composite Index gained 33.41 points, or 0.89%, to 3807.75. Nasdaq finished higher for a
fifth-straight week, the longest strike of gains since a six-week streak ended in February.
Gains in the tech-heavy Nasdaq were helped by news that Twitter filed formal paperwork late Thursday for the social-
media site's much-anticipated initial public offering, according to Matthew Cheslock, a trader with brokerage firm Virtu
Financial. "Even if they don't list with Nasdaq, it is still social media, and that is where everyone wants to put their
money right now," he said.
Elsewhere in social media, Nasdaq component Facebook saw strong gains after announcing plans to start running ads over
its popular Instagram service.
Investors expressed concerns in recent weeks over how an extended government shutdown might slow the economy and throw
a wrench into coming talks to raise the debt ceiling. But after the Dow industrials lost 1.7% in the first four days of
the week, some investors were "optimistically buying the dip," Mr. Cheslock said.
"This kind of volatility is going to be the norm for now," he said. "Some are taking a shot that something might
happen over the weekend."
House Republican leaders on Friday continued to insist on changes to the health-care law as a condition of reopening
the government, and they criticized President Barack Obama for refusing to negotiate over the matter.
Meanwhile, Democratic leaders were preparing a petition that could force a vote on funding the government without any
defunding of the health-care law as soon as Oct. 14.
"In public, the two sides are disagreeing on everything, but at least there are some private discussions going on,"
said John Carey, executive vice president and money manager with Pioneer Investments in Boston, which manages about $200
billion in assets.
"There seems to be some optimism that an agreement might come over the weekend, or at least we won't go plunging off
the cliff," he said. Otherwise, investors are looking forward to third-quarter corporate earnings reports, which will
begin next week, he said.
Investors usually look forward to the first Friday of every month for the release of the closely watched government
employment report. But the September report was postponed by the government shutdown.
The U.S. nonmanufacturing sector expanded at a far slower pace than expected last month, according to the Institute
for Supply Management's nonmanufacturing purchasing managers index.
The yield on the 10-year Treasury ticked up to 2.650%, from 2.608% late Thursday.
European markets were slightly higher, with the Stoxx Europe 600 up 0.1%. Data released Friday showed that wholesale
inflation in the euro zone remained tame, with the producer price index for August flat on the month, against
expectations of a 0.1% increase.
Asian markets fell broadly, with Japan's Nikkei Stock Average shedding 0.9% to close at a one-month low, as investors'
focus remained on political uncertainties in the U.S.
November crude-oil futures settled 0.5% higher, at $103.84 a barrel, with fears of a tropical storm brewing in the
Gulf of Mexico lending support. October gold futures finished down 0.6% at $1,309.70 an ounce. The dollar edged higher
against the euro and the yen.
In corporate news, Twitter filed paperwork late Thursday for its initial public offering, saying it made $253.6
million in revenue and recorded a loss of $69.3 million during the first six months of the year. The company proposed a
ticker of "TWTR" but didn't say which exchange it chose for its primary listing.
Sandwich-shop chain Potbelly's shares more than doubled in its trading debut, following an IPO that was priced above
the company's expectations.
Write to Matt Jarzemsky at email@example.com or Kaitlyn Kiernan at firstname.lastname@example.org
(END) Dow Jones Newswires
Copyright (c) 2013 Dow Jones & Company, Inc.