US stocks edged higher on Friday as a report from Caterpillar of strong machine sales in Asia boosted other companies with global operations, although a resolution to the sparring between Walgreen and CVS Caremark weighed on some health-care companies that were expected to benefit from the dispute.
The Dow Jones Industrial Average rose 16.47 points (0.16%) to 10,450.64, its fourth-straight gain and longest winning streak since late April. The measure climbed 2.35% last week, marking its second-straight week in the black and its best two-week performance on a percentage basis since November. It is now up 0.22% for the year.
Caterpillar was among the Dow's top performers with a gain of 90 cents (1.4%) to $65.85. The industrial giant posted a 38% year-over-year jump in machine sales in Asia for May. That encouraged optimism about Asia, and especially China, where efforts to put the brakes on growth have prompted worries about demand.
The report also showed that while there was weakness in Caterpillar's Europe, Africa and Middle East region, which had an 8% drop in machinery sales last month, its North America region was strong with a 15% climb.
The Nasdaq Composite rose 2.64 (0.11%) to 2,309.80, its seventh-straight positive close. That marks the measure's longest winning streak since a 12-day run last July. It jumped 2.95% last week, the measure's second-straight positive week. The Nasdaq is up 1.79% for the year.
The Standard & Poor's 500 index advanced 1.47 (0.13%) to 1,117.51. It rose 2.37% last week, its second-straight weekly gain and best two-week percentage performance since November. The measure is up 0.22% for the year to date.
The energy, financial and materials sectors led Friday's gains, while the health-care sector led to the downside.
Weighing on the health-care sector, Medco Health Solutions dropped $1.46 (2.4%) to $60.05, and Express Scripts declined 72 cents (1.4%) to $52.02, after an agreement was struck allowing Walgreen to continue participating in CVS Caremark's pharmacy-benefit management network, resolving a spat between the companies. Shares of Walgreen and CVS rose on the agreement. Walgreen climbed 82 cents (2.8%) to $30.09, and CVS added 59 cents (1.9%) to $32.43.
American depositary shares of Roche Holding AG fell 87 cents (2.4%) to $35, after the company said new safety concerns about potential billion-dollar drug taspoglutide require deeper monitoring of patients' response to the medicine, which will push back an expected regulatory filing by as much as 18 months. The news prompted American depositary shares of Novo Nordisk to climb $2.66 (3.3%) to $84.45, while shares of Amylin Pharmaceuticals surged $3.29 (20%) to $19.80, and Eli Lilly rose 22 cents (0.6%) to $34.61. Roche's product would be a rival to Novo Nordisk's recently launched Victoza and to Byetta, a diabetes treatment developed by Amylin and Eli Lilly.
HCP dropped $1.63 (4.8%) to $32.72. The health-care real-estate investment trust boosted the minimum size of its planned stock sale by 13% as it priced the shares at a 3.9% discount to Thursday's close.
For Australian ADRs listed on the NYSE, BHP Billiton increased 80 cents (1.19%) to US$67.83, Rio Tinto Plc rose 27 cents (0.55%) to US$49.47, ResMed dropped $1.33 (2.06%) to US$63.37, Telstra Corporation gained 34 cents (2.47%) to US$14.10, Telecom Corporation of NZ advanced 2 cents (0.3%) to US$6.64 and Westpac increased $1.60 (1.58%) to US$102.63.
At 7:45 AM (AEST), the 10-year Treasury note yield was 3.22% and the five year yield was 2.01%.
European shares ended higher on Friday, just clinging onto a recent winning streak, as gains for banks worked to offset losses for major pharmaceuticals.
The Stoxx Europe 600 index closed up 0.2% at 255.50 marking the eighth day of gains for the index.
Drug stocks weighed however. Sanofi-Aventis ended down 3%. Roche Holding shares fell 2.5%. GlaxoSmithKline shares lost 1.6% and AstraZeneca shares fell 0.5%. Concerns about the safety of Sanofi's Lantus medicine to treat diabetes were renewed, according to reports. The firm said that evidence over potential cancer risks has been inconclusive so far.
Sanofi trades in the French CAC-40 index which ended up 0.1% at 3,687.21. The German DAX index ended down slightly at 6,216.98. The UK FTSE 100 index fell 0.05% to end at 5,250.84.
Most oil producers were lower, with Total shares down 0.7%. BP fell 0.6% to end at 357 pence. BP's Chief Executive Tony Hayward, told a congressional panel that it's still too early to determine the exact cause of the Deepwater Horizon rig explosion April 20 and subsequent oil leak.
Worries about sovereign debt in Europe have retreated and European Council President Herman Van Rompuy said that stress tests on European banks will be published in July.
Societe Generale shares rose 3% and Credit Agricole shares rose 6%.
Spain's Banco Santander rose 3.5% and BBVA rose 5.6%, helping the Spanish Ibex 35 index to advance 2.2% to end at 9,971.80. The firms may be rated the two healthiest banks in Europe in the tests, while analysts say Germany's unlisted landesbanks could be among the weakest.
On the FTSE 100, Rio Tinto improved 5.00 pence (0.15%) to 3,325.00 pence and BHP Billiton climbed 19.50 pence (1.02%) to 1,940.00 pence.
Asian markets ended mixed. Japan's Nikkei Stock Average finished flat, with exporters extending losses on the yen's strength against the US dollar.
China's Shanghai Composite lost 1.8%, and Hong Kong's Hang Seng Index advanced 0.7%.
New Zealand shares closed flat, ending another lacklustre week characterised by slack trading interest and low volumes. The NZX-50 benchmark index ended at 3,047.50. The index rose 0.2% in the week.
Base metals were dragged down by souring Chinese sentiment, and analysts said the market could be facing further modest declines early next week if the euro's recent rally falters. Aluminium fell $10 (0.51%) to $1,940 while copper weakened $40 (0.62%) to $6,420 and nickel remained unchanged at $19,600. Zinc dropped $20 (1.14%) to $1,740 and lead shed $15 (0.85%) to $1,745. Comex copper was last quoted at 288.55 US cents per pound.
Gold futures set record highs for a second consecutive day as investors continued to put faith in the metal's value amid largely uncertain markets elsewhere. Spot gold was last quoted at $1,258.20. Comex gold futures added $9.60 (0.77%) to $1,258.30. Spot silver was last quoted at $19.10.
Crude-oil posted a slim rise, while profit-taking ended a four-day rally in petroleum products as concerns linger over near-term oversupply. West Texas Intermediate was last quoted at US$77.18 per barrel.
At 07:45 a.m. (AET) the US dollar was quoted at 0.8042 euros, 90.35 yen, 1.244 AUD and 67.29 pence.