Stocks on Wall Street ended mixed as investors sold tech shares and rotated into cyclical stocks. Fred Katayama reports.
FRED KATAYAMA: Stocks barely budged on Wall Street, ending Friday mixed. The great rotation advanced as investors bet on an economic recovery. They sold tech shares that have rallied throughout the health crisis, like Facebook and Netflix, and bought Deere, Caterpillar, and other economically sensitive, cyclical stocks.
Mercadien Asset Management president Ken Kamen says investors should take some profit on tech stocks and invest more in value and cyclical stocks
KEN KAMEN: It's not that we are abandoning growth or are suggesting people shouldn't, but I think it's time to [? pare ?] that out. I mean, the market's just doing so well, and a lot of these growth stocks are priced for more than perfection.
FRED KATAYAMA: The Dow and NASDAQ finished flat, while the S&P 500 slipped 2/10%. For the week, only the Dow managed to eke out a gain.
Among the top movers on the NASDAQ and S&P Friday-- Applied Materials rising 5%. The chip equipment maker forecast second-quarter revenue that topped expectations. A global shortage of semiconductors has spurred demand for its manufacturing tools.
Shares of Deere jumped nearly 10%. The world's largest maker of farm equipment upgraded its earnings forecast after quarterly profit more than doubled. Higher commodity prices and rising exports have boosted demand for its machines.
Bank of America said Friday it expects stocks to pull back more than 10%. Equities are trading at the most expensive prices since the dotcom bubble of the 1990s.