U.S. stocks rose, with benchmark indexes extending records amid optimism over the economy, as deal activity spurred a rally in health-care shares and energy producers gained with oil prices. Copper advanced a sixth day.
The Standard & Poor’s 500-stock index added 0.2 percent to 1962.87 in regular trading and the Dow Jones industrial average climbed 0.1 percent to an all-time high. Emerging-market shares completed their first weekly drop in June on concern that higher oil costs will curb growth. Copper capped the longest rally in six months and coffee advanced for its best day in a month.
U.S. and European stocks rallied this week after the Federal Reserve said interest rates will remain low as the economic recovery shows signs of accelerating. Commodities led by oil rose for a second week as President Obama said he is sending U.S. military advisers to help the Iraqi army battle an insurgency and is prepared to take more action.
The S&P climbed 1.4 percent this week. The index has closed higher six straight days, its longest streak since April. The gauge is trading at 16.6 times the projected earnings of its members, up from 15.5 times at the beginning of the year.
The tech-heavy Nasdaq gained 8.71 points, or 0.2 percent, to 4368.04. The index is still well below its dot-com era peak of just over 5000.
— Bloomberg News
The National Highway Safety Traffic Administration said Friday it was reviewing reports that exhaust gases, including carbon monoxide, may enter the passenger compartment of some Ford Explorers, a potential safety issue that has prompted customer complaints and a recent lawsuit.
The agency said it was aware of complaints involving Ford Motor’s Explorers from model years 2011 through 2014 from owners who claim they experienced exhaust fumes or other strange odors in the cabin. NHTSA was “reviewing all available data and will take appropriate action as warranted,” it said in a statement.
In a lawsuit filed June 9 in a federal court in Florida, Angela Knutson, the owner of a 2013 Ford Explorer, said that a defect in hundreds of thousands of Explorers could cause “lethal quantities of carbon monoxide” to enter passenger cabins while the vehicle was being driven, putting occupants at risk.
● Starbucks is raising prices on some of its drinks by 5 cents to 20 cents starting next week, and customers can also soon expect to pay $1 more for the packaged coffee it sells in supermarkets. The Seattle-based chain also raised prices on some of the drinks sold in its cafes a year ago.
● General Electric won France’s support to buy Alstom SA’s energy assets, beating Siemens and putting GE chief executive Jeffrey Immelt a step closer to the company’s largest acquisition ever. Siemens said it respects today’s decision by French leaders, who will back GE’s bid on condition that the government acquire a 20 percent stake in Alstom. GE declined to comment while it reviews the demands set forth today by Economy Minister Arnaud Montebourg.
● The European Union moved to close a loophole that has allowed multinational companies to reduce their tax bills by exploiting differences in national tax rules, ending months of negotiations and potentially boosting E.U. states’ tax revenues. Corporate tax avoidance has become a hot issue in industrialized nations. Campaigners have drawn support from public anger at companies avoiding taxes at a time of austerity.
● RadioShack’s stock closed below $1 per share for the first time in its history, reflecting investors’ concern over what lies in store for the long-struggling consumer electronics chain. Shares of RadioShack fell 11 cents, or 10 percent, to close at 92 cents. The New York Stock Exchange could delist the stock if it closes below $1 per share for 30 consecutive trading days.
● Twitter and Facebook lit up in a World Cup frenzy this week as millions of people around the world took to social media to share in the ups and downs of the matches. Google, meanwhile, tracked more than 641 million World Cup-related searches. In the week leading up the U.S. team’s game against Ghana on Monday, there were 10 times more searches for the World Cup in the United States than for the NBA Finals, which were in progress at the time.
● Argentina bonds rallied as President Cristina Fernández de Kirchner said the South American country will go ahead with talks to resolve a dispute with holdout creditors. Her remarks sent the nation’s bonds to the biggest gains in emerging markets.
— From news services