July 17, 2015 / 12:25 AM / 2 years ago

Nasdaq ends at record; earnings, energy hit other indexes

4 Min Read

Traders work on the floor of the New York Stock Exchange July 16, 2015.Brendan McDermid

NEW YORK (Reuters) - Wall Street's Nasdaq stock index ended at a record high on Friday on a rally in Google shares, while weak energy stocks and disappointing corporate results from companies such as Boeing and Volvo hit other European and U.S. indexes and the dollar rallied on strong U.S. inflation and housing data.

Google (GOOGL.O) surged 16.26 percent to end at an all-time high of $699.62, pushing the Nasdaq to a second straight record high. A 6.3 percent drop in Volvo (VOLVb.ST) shares and a halt to a Greece-driven relief rally stymied European shares, meanwhile, while a 1.1 percent drop in Boeing (BA.N) shares and a similar tumble in the S&P 500 energy index .SPNY weighed on the Dow and limited the S&P 500's gains.

Energy stocks slid on the back of a drop in oil prices, which later rebounded from their lows. In Europe, oil and gas shares ended 0.52 percent lower .SXEP.

"Whenever we see oil tick down, people worry about global growth," said Karyn Cavanaugh, senior market strategist at Voya Investment Management in New York. She added that earnings "have been a little bit of a touch-and-go situation."

Forecast-beating corporate reports from mobile network supplier Ericsson (ERICb.ST), appliance maker Electrolux (ELUXb.ST) and Swiss fragrance firm Givaudan GIVN.VX helped European shares close mostly flat.

The U.S. dollar index .DXY, which measures the greenback against a basket of six major currencies, was last up 0.29 percent on Friday and notched its strongest weekly gain since May, of about 2 percent.

MSCI's all-country world equity index .MIWD00000PUS, was last down 0.05 percent at 431.96.

The S&P 500 .SPX closed up 0.11 percent, at 2,126.64 and the Dow Jones industrial average .DJI ended down 0.19 percent, at 18,086.45. The Nasdaq composite .IXIC ended up 0.91 percent, at 5,210.14.

The FTSEurofirst 300 index .FTEU3 of top European shares closed down 0.01 percent at 1,608.59. The FTSEurofirst and Euro STOXX 50 indexes both remain up nearly 20 percent in 2015.

Strong U.S. consumer price index data, rebounding housing starts and surging building permits bolstered expectations that the Federal Reserve was moving closer to hiking interest rates, which buoyed the dollar.

"The focus is turning to the U.S. rate cycle, and (the market reckons) a September rate hike is still, if not probable, at least possible," RBC Capital Markets global head of FX strategy Adam Cole said.

The U.S. Treasury yield curve flattened on the outlook for higher rates. Yields move inversely to prices.

Spot gold prices XAU= fell more than 1 percent to their lowest since April 2010 of $1,130.70 an ounce, pressured by the strong dollar and increasing bets that the Fed will hike rates. U.S. August gold futures GCv1 settled down 1 percent at $1,131.90 an ounce.

Brent crude rose and U.S. futures dipped in choppy trading as expectations of increased exports from Iran capped prices and helped both contracts post their third consecutive weekly losses.

International benchmark Brent LCOc1 settled up 18 cents at $57.10 a barrel, while front-month U.S. crude futures CLc1 settled down 2 cents at $50.89.

Additional reporting by Lionel Laurent and Clara Denina in London and Michael Connor and Karen Brettell in New York; Editing by Nick Zieminski and James Dalgleish

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