U.S. stocks traded sharply higher Friday, with the Dow Jones Industrial Average leaping 100 points, as a rise in consumer optimism and upbeat corporate earnings offset concerns about Greece’s ongoing debt crisis. Friday’s gains were driven by the consumer goods and services sector, while the utilities sector was the biggest laggard.
The Dow (INDEXDJX:.DJI) jumped 102.93 points, or 0.58 percent, to 17,993.29. The Standard & Poor’s 500 index (INDEXNASDAQ:.IXIC) rose 6.01 points, or 0.29 percent, to 2,108.55. The Nasdaq composite (INDEXSP:.INX) added 9.25 points, or 0.18 percent, to 5,120.54.
Dow component Nike Inc. (NYSE:NKE) boosted the blue-chip index Friday, gaining 4 percent, after the world’s largest athletic apparel retailer swooshed past Wall Street’s earnings forecasts, driven by strong sales of basketball footwear from the Jordan, LeBron, Kobe and KD shoe brands.
For the quarter ended May 31, Nike reported fiscal fourth-quarter net income of $865 million, or 98 cents, on revenue of $7.78 billion, compared with a profit of $698 million, or 78 cents, on sales of $7.4 billion during the same period a year earlier.
Shares of Nike have gained nearly 40 percent in the last 12 months.
Chipmaker Intel Corporation (NASDAQ:INTC) was the biggest loser in the Dow, shedding 2.5 percent.
U.S. consumer optimism jumped this month, signaling a rebound after Americans became slightly less optimistic about the health of the overall economy in May following a sluggish first quarter.
The final reading of the Consumer Sentiment Index, which is released twice a month, rose to 96.1 in June after hitting 90.7 in May, the University of Michigan said Friday. Analysts polled by Thomson Reuters had expected the index to rise to 94.6 for the final June reading.
Consumer spending, which accounts for more than two-thirds of economic activity, will remain the driving force of U.S. growth this year, according to Richard Curtin, chief economist at Surveys of Consumers.
“Consumers voiced in the first half of 2015 the largest and most sustained increase in economic optimism since 2004,” Curtin said in a statement Friday.
Curtin added that the consumer sentiment data indicates consumer spending will grow 3 percent in 2015.
Meanwhile, market professionals continue to eye Greece's bailout crisis as the country’s program is set to expire at the end of the month, with Athens at risk of defaulting on a 1.6 billion euro ($1.8 billion) debt repayment to the International Monetary Fund on Tuesday.
European creditors are scheduled to meet with Greek officials on Saturday for a last-ditch effort to save Athens from defaulting on its debt.
Chinese stocks tumbled more than 7 percent Friday amid uncertainty over the central bank's monetary policy. The Shanghai Shenzhen CSI 300 Index dropped nearly 8 percent at the close Friday, its biggest one-day percentage fall since June 2008, while the Shanghai Composite Index tumbled 7.4 percent.