Stocks fluctuate as DuPont falls while utility shares gain

NEW YORK – U.S. stocks fluctuated, with the Standard & Poor’s 500 Index poised for a weekly drop, as DuPont Co. slid after cutting its earnings forecast while utilities and consumer shares led gains.

DuPont fell 4.1 percent after the maker of genetically modified corn trimmed its full-year profit estimate as farmers switched to soybeans. Pioneer Natural Resources Co. slid 1.2 percent to lead oil and natural gas producers lower. Nike Inc. added 1.7 percent after the largest sporting-goods maker posted profit that beat analysts’ estimates. GoPro Inc. rose 23 percent after shares surged 31 percent on Thursday in their trading debut.

The S&P 500 was little changed at 1,956.45 at 11:37 a.m. in New York. The benchmark index has advanced 4.5 percent this quarter, its sixth straight gain for the longest winning streak since 1998. The Dow Jones Industrial Average declined 24.16 points, or 0.1 percent, to 16,821.97 on Friday.

“We did have a very good quarter relative to the first, so maybe that means on the margin people are going to be a little more cautious, especially because of the bad economic data that has come out this week,” James Liu, global market strategist at JP Morgan Funds said in a phone call in New York. He helps oversee $500 billion.

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The S&P 500 has lost 0.3 percent this week, paring its gain in June to 1.7 percent. Stocks retreated Thursday as James Bullard, president of the Federal Reserve Bank of St. Louis, suggested that higher interest rates may occur in the first quarter of next year. Investors shrugged off data this week showing U.S. gross domestic product shrank 2.9 percent in the first quarter, the worst reading since 2009.

Consumer data

The Thomson Reuters/University of Michigan’s final June index of consumer sentiment rose to 82.5 from 81.9 a month earlier. The median projection in a Bloomberg survey of 57 economists called for 82 after a preliminary June reading of 81.2.

“The consumer sentiment numbers support indicators pointing to a continued rebound, whether it’s employment numbers, stock prices or home values,” Jim Dunigan, Philadelphia-based chief investment officer at PNC Bank, said in a phone interview.

The S&P 500 trades at 16.6 times the projected earnings of its members, close to its highest valuation in four years.

U.S. stocks are poised for the third-slowest month in six years. About 5.6 billion shares have changed hands each day in June, trailing every month since 2008 except for the previous two Augusts, data compiled by Bloomberg show. The S&P 500 has failed to post a gain or loss exceeding 1 percent for 49 straight days, the longest stretch since 1995.

Russell revision

Russell Investments concludes the annual revisions to its equity benchmark gauges Friday. Russell’s U.S. stock indexes, including the Russell 1000 Index and the Russell 2000 Index, are used as benchmarks for $5.2 trillion in assets, according to the company’s website. In the previous two years, the reconstitution day ranked in the top two busiest trading sessions, data compiled by Bloomberg show.

“Due to the sharp increase in market share of exchange- traded funds and large number of active managers that are closet indexers, it will most likely have an impact as the herd panics to get into new index names,” Eric Cinnamond, Louisville, Ky.-based manager of the $798 million Aston/River Road Independent Value Fund, said in an email.

With the end of the quarter, investors should expect about $20 billion in selling of equities and some buying of bonds as pension fund managers rebalance their portfolios, Boris Rjavinski, a strategist at UBS AG, estimated in a June 23 report.

DuPont earnings

DuPont lost 4.1 percent to $64.96, the biggest loss in 18 months, after the company said it expects its full-year operating earnings of between $4 and $4.10 per share, compared with an earlier forecast of $4.20 to $4.45.

Pioneer Natural Resources slid 1.2 percent to $225.40. The U.S. Commerce Department Wednesday ruled that the oil and gas drilling company’s ultra-light oil, known as condensate, qualified for exemption from a four-decade-old export ban on most domestic crude.

Nike Inc. led gains on the Dow, climbing 1.7 percent to $78.18, the highest since March 20, after the largest sporting-goods maker posted fourth quarter profit that beat analysts’ estimates.

GoPro Inc., the developer of mountable camera gear, gained 23 percent to $38.45 in its second day of trading on the Nasdaq.

Keurig Green Mountain Inc. gained 4.1 percent to $125.32. The maker of single-cup coffee brewing systems was raised to “buy” from “hold” by Argus Research Corp. analyst John Staszak.

Dollar General Corp. fell 7.5 percent to $57.06, the biggest loss in 13 months. The discount retail store operator’s Chairman and CEO Rick Dreiling, 60, informed the board of his intent to retire as CEO effective May 30, 2015. He plans to remain as chairman during a transition period.

Family Dollar Stores Inc. slid 3.8 percent to $65.40, the biggest decline since Jan. 13.

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