* Major indexes finish July up 7 percent
* Strong monthly performance comes on low volume
* Economy slowed more than expected in second quarter
* Indexes: Dow down 0.01 pct, S&P up 0.05, Nasdaq up 0.2
* For up-to-the-minute market news see []
(Updates to close)
By Edward Krudy
NEW YORK, July 30 (Reuters) - U.S. stocks closed little
changed on Friday, but Wall Street wrapped up its best month in
a year after the earnings season rounded the final turn with a
group of strong results that offset the impact of poor economic
data.
While the major indexes each posted 7 percent gains for the
month, it came during low volume and followed a combined
decline of nearly 14 percent for May and June.
The conflict between strong earnings and lackluster
economic news has held stocks in a tight range throughout July.
Prior to Friday's open, second-quarter GDP data disappointed
investors, even though shares came back later in the session.
A lack of clear direction has led to more technical
trading, with the S&P 500 finding support around 1,100 while
struggling to move above its 200-day moving average around
1,115. A sustained move above that level would be bullish for
investors.
"We have failed up here essentially about three times, so
technically people are using that as something to lean on on
the short side," said Nick Kalivas, vice president of financial
research and senior equity index analyst at MF Global.
Kalivas said global purchasing managers' indexes at the
start of next week will give investors a better idea about the
direction of the economy and could be a catalyst for markets.
"The market kind of stalled up the last couple of days. On
the surface earnings numbers have been pretty strong, but
underneath there was a loss of momentum," he said.
Speculators are net short the S&P 500, according to
Commodity Futures Trading Commission data but trimmed their
short portions from a week earlier.
For July the Dow rose 7.1 percent, the S&P 500 gained 6.9
percent and the Nasdaq added 6.9 percent.
The Dow Jones industrial average <> dropped 1.22
points, or 0.01 percent, to 10,465.94. The Standard & Poor's
500 Index <.SPX> gained 0.05 points, or 0.00 percent, to
1,101.58. The Nasdaq Composite Index <> gained 3.01
points, or 0.13 percent, to 2,254.70.
For the week, the Dow rose 0.4 percent, the S&P 500 lost
0.1 percent and the Nasdaq dipped 0.7 percent.
In corporate news, Chevron Corp <CVX.N>, the second-largest
U.S. oil company, reported a three-fold jump in quarterly
profit, topping Wall Street's forecast, but its revenue was
below analysts' estimate. The shares rose 0.2 percent at
$76.21. For details, see []
U.S. drugmaker Merck & Co <MRK.N> reported a profit that
beat analysts' estimates, but its sales were less than Wall
Street's expectations, and the stock fell 1.7 percent to
$34.46. []
In the Commerce Department's first estimate of economic
growth for the second quarter, U.S. GDP expanded at a 2.4
percent annual rate, driven by capital investment, but the
expansion was down from the first quarter's revised 3.7 percent
rise. STORY: [] TABLE: []
U.S. consumer sentiment plunged in July to its lowest level
since November on bleak prospects for jobs and income a year
since the economic recovery began, according to the Thomson
Reuters/University of Michigan's Surveys of Consumers.
[]
The Institute for Supply Management-Chicago business
barometer, however, showed businesses boosted employment and
orders. STORY: [] TABLE: []
About 7.63 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and Nasdaq, short of last
year's estimated daily average of 9.65 billion.
Advancing stocks outnumbered declining ones on the NYSE by
a ratio of about 3 to 2, while on the Nasdaq, about five stocks
rose for every four that fell.
(Reporting by Edward Krudy; Editing by Kenneth Barry)
