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US: S&P 500 edges up to new record in choppy trade


[NEW YORK] The S&P 500 edged higher to a new record Friday in choppy trade following disappointing reports on US industrial production and consumer confidence.

The S&P 500 rose 1.63 points (0.08) to 2,122.73, notching its second straight record close.

The Dow Jones Industrial added 20.32 (0.11 per cent) at 18,272.56, while the tech-rich Nasdaq Composite Index dipped 2.50 (0.05 per cent) to 5,048.29.

"There's not a lot of movement, especially considering most of the economic data we got this morning was a bit disappointing," said Art Hogan, chief market strategist at Wunderlich Securities.

US industrial production fell 0.3 per cent in April, the fifth straight month of decline, according to Federal Reserve data.

The University of Michigan's US consumer sentiment index plummeted to 88.6 in May from 95.9 in April.

Offsetting these data were the pullback in the US dollar and US Treasury yields, Hogan said.

Netflix rose 4.5 per cent following reports it is in talks with a Chinese partner backed by Alibaba founder Jack Ma to launch online video services in China.

Keurig Green Mountain sank 8.6 per cent after announcing details of its upcoming "Keurig Kold" appliance, which makes sodas at home. Analysts expressed concern at the high price of the device, which initially will be sold for $299-$369, according to Morgan Stanley.

Package-delivery service UPS rose 1.5 per cent as Goldman Sachs upgraded the stock, saying it expects the package-delivery service to successfully implement price increases in the next couple of years.

Car-rental companies rose on news Hertz plans a broad price increase at US rental locations starting next month due to strong seasonal demand and lower car capacity. Hertz shares rose 5.3 per cent, while Avis Budget shot up 10.2 per cent.

Bond prices rose. The yield on the 10-year US Treasury tumbled to 2.14 per cent from 2.24 per cent Thursday, while the 30-year dropped to 2.94 per cent from 3.06 per cent. Bond prices and yields move inversely.