Market Wrap: Stocks End Flat in Quiet End to Dramatic Week

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APTOPIX Financial Markets Wall Street
Richard Drew/AP
By Noel Randewich

NEW YORK -- Wall Street ended a tumultuous week with a flat close Friday as investors shrugged off concerns that a September rate rise was more likely than some investors expected.

Shares traded lower earlier in the session after Fed Vice Chairman Stanley Fischer told CNBC the Fed hadn't yet decided whether to raise interest rates in September. However, the market largely recovered in the final moments of trade.

After several volatile sessions that at one point pushed the S&P 500 to its lowest level since October 2014, the three major U.S. indexes ended the week with gains.

%VIRTUAL-pullquote-A lot of investors are rebalancing their portfolios before going into the weekend.%"A lot of investors are rebalancing their portfolios before going into the weekend," said Randy Frederick, managing director of trading and derivatives for Charles Schwab (SCHW) in Austin.

Many on Wall Street have been hoping the recent global market turbulence and worries about China's economy would lead the Fed to hold off raising rates. This expectation was reinforced Wednesday by comments from New York Fed President William Dudley.

However, following Fischer's comments Friday, overnight indexed swap rates implied traders now see a 35 percent chance the Fed would raise rates in September, up from 22 percent earlier in the week.

The Dow Jones industrial average (^DJI) ended down 0.07 percent at 16,643.01 while the Standard & Poor's 500 index (^GSPC) edged up 0.06 percent to 1,988.87. The Nasdaq composite (^IXIC) added 0.3 percent to end at 4,828.33, driven by a 2.5 percent rise in Intel (INTC).

For the week, the Dow gained 1.1 percent, the S&P rose 0.9 percent and the Nasdaq added 2.6 percent.

Still in the Red

The S&P remains down more than 5 percent from when the market began to sell off on Aug. 18. The turmoil has prompted several strategists to cut their end-of-year forecasts for indexes.

Credit Suisse (CS), for example, cut its year-end target for the S&P 500 to 2,100 from 2,200 Friday.

Half of the 10 major sectors rose, with the energy index jumping 2 percent as oil added to gains. The utilities index lost 0.4 percent.

Chevron's (CVX) 3.6 percent gain provided the biggest boost to the Dow and the S&P 500.

Data released Friday showed consumer spending picked up a bit in July, further evidence of strength in the economy.

Autodesk (ADSK) dropped 5 percent after the maker of computer-aided design software cut its full-year profit and revenue forecast.

Big Lots (BIG) was jumped 15.7 percent after its second-quarter profit beat expectations and the company raised its full-year adjusted profit forecast.

While the Dow and S&P were negative, advancing issues outnumbered decliners on the NYSE by 1,917 to 1,114. On the Nasdaq, 1,882 issues rose and 877 fell.

The S&P 500 index showed one new 52-week high and one new low, while the Nasdaq recorded 21 new highs and 22 new lows. Volume was lighter than in recent days. About 7.8 billion shares traded on U.S. exchanges, compared to an average of 11.2 billion in the past five sessions, according to BATS Global Markets.

-Tanya Agrawal contributed reporting.

What to watch Monday:
  • The Institute For Supply Management - Chicago releases its regional purchasing managers index for August at 9:45 a.m. Eastern time.
  • The Federal Reserve Bank of Dallas releases its survey of manufacturing conditions in Texas at 10:30 a.m. Eastern time.
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