US stocks edged higher on Friday after Citigroup and General Electric announced better than expected quarterly results. Shares also gained after positive economic data spurred hopes of recovery.
The Dow Jones Industrial Average rose 5.90 points or 0.07% to finish at 8,131.33. The S&P 500 increased 4.30 points or 0.50% to end at 869.60. The Nasdaq Composite gained 2.63 points or 0.16% to 1,673.07.
For the week, Dow was up 47.95 points or 0.59%. S&P rose 13.04 points or 1.52%%, while Nasdaq Composite settled with a weekly gain of 20.53 points or 1.24%.
Early on Friday, Citigroup (NYSE: C) said that quarterly loss available to common shareholders narrowed to $966 million, or 18 cents per share, from $5.19 billion, or $1.03 a share, in year earlier quarter. Revenue nearly doubled to $24.79 billion. Analysts on average projected a loss of 30 cents a share on revenue of $21.73 billion. Shares of Citigroup tumbled 36 cents or 8.98% to $3.65.
BB&T Corp. (NYSE: BBT) soared $2.35 or 11.15% to $23.42 after it reported that first quarter profits fell 38.5% to $318 million, or 48 cents a share after preferred share dividend payments, from $428 million, or 78 cents a share, in the same quarter year ago. Analysts on average had forecast a profit of 33 cents a share.
Among other financials, American Express (NYSE: AXP) jumped $1.12 or 5.41%.Bank of America (NYSE: BAC) rose 26 cents or 2.51% to $10.60. Wells Fargo rallied 81 cents or 4.16% to $20.26.
Diversified US firm General Electric Co. (NYSE: GE) reported that first-quarter net income declined to $2.9 billion, 26 cents a share, from $4.47 billion, or 43 cents, year ago quarter. Revenue totaled $38.41 billion, down from the prior year's $42.23 billion. Shares of the company finished at $12.39, up 12 cents or 0.98%.
McDonald's Corp. (NYSE: MCD) gained $1.39 or 2.54% to $56.09. Shares of toy maker Mattel Inc. (NYSE: MAT) soared $1.98 or 15.20% after it reported that its first net loss widened to $51 million, or 14 cents a share, from $46.6 million, or 13 cents a share, in the prior year quarter. Revenue decreased $785.6 million from $919.3 million.
Late on Thursday, Google (NASDAQ: GOOG) reported first quarter results that beat consensus view. Net income totaled $1.42 billion, or $4.49 per share, up 9% from $1.31 billion, or $4.12 per share, in the year ago period. However, for the first time in its history Google posted a sequential drop in sales. Sales for the quarter, minus traffic acquisition costs, were $4.07 billion, down from the $4.22 billion in the fourth quarter. Revenue was up 6% from first quarter of 2008. Google shares climbed $3.50 or 0.90% to $392.24.
Software giant Microsoft Corp. (NASDAQ: MSFT) lost 56 cents or 2.93% to close at $19.20.
Shares of General Motors (NYSE: GM) plunged 8 cents or 4.12% to $1.86.GM CEO Fritz Henderson said that bankruptcy remains likely for the embattled automaker. “I felt several weeks ago that it would be more probable that we would need to go through a bankruptcy process. I certainly feel that way. That continues today," he said
On the front of economic data, the Reuters/University of Michigan preliminary consumer sentiment index for April rose to 61.9, from 57.3 in March. Economists had expected a reading of 57.5.
European stocks settled higher. The U.K. FTSE climbed 39.82 points or 0.98% to 4,092.80. The German DAX and French CAC increased 1.46% and 1.77% respectively.
Asian stocks finished up. The Nikkei 225 rose 152.32 points or 1.74% to 8,907.58. The Hang Seng index of Hong Kong increased 18.28 points or 0.12% to 15,601.27.
Disclosure: Author does not own any of the stocks discussed here.
