Stocks edge up as Obama speaks on economy

By msnbc.com news services

Updated at 10:45 p.m. ET: Stocks were wavering Friday, lately edging higher as President Barack Obama made comments on the nation's economic woes and the debt crisis in Europe, which continues to be a drag on the U.S.

The U.S. financial system can absorb shocks from the European crisis, Obama said, and also called on European leaders to inject capital into ailing banks.

The president also called on Congress to pass proposals that he said would put construction workers, teachers and first responders back to work.

Obama's statement in the White House briefing room comes in the midst of a rough patch for the president and his re-election campaign.

A dismal jobs report last week has raised new fears that the nation's economic recovery has slowed. And Obama's campaign raised less money last month than Republican rival Mitt Romney.

Investors were already cautious Friday ahead of a weekend expected to bring new developments in dealing with Spain's banking crisis.

Spain is expected to request European aid for its ailing banks over the weekend to forestall worsening market turmoil, EU and German sources said. Investors are worried that developments may not be favorable for markets.

"The European banking system is undercapitalized, and the markets are waxing and waning based on enthusiasm for a plan to recapitalize them," said Jack de Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.

"This weekend we may get some news on recapitalizing Spanish banks, and I think there is a fair amount of fear of being invested in risk assets over the weekend, because if that doesn't happen, we could easily lose that 200-plus (Dow index) points that we gained."

The S&P 500 was on course for its best week this year after a substantial rally in the middle of the week. That came shortly after the index fell below it 200-day moving average, in what some analysts said was an oversold bounce. The strong week also comes after the worst month since September.

"The rally we had, which was pretty strong, was a bit more of a technical than a fundamental bounce, and the market is struggling to find the good news to keep it going," said Rick Meckler, president of investment firm LibertyView Capital Management in New York.

McDonald's Corp fell after the fast-food chain said global comparable sales rose 3.3 percent in May and that foreign currency translation negatively impacted second quarter earnings by 7 to 9 cents per share.

Chesapeake Energy Corp plans to sell its pipeline and related assets to Global Infrastructure Partners in three separate transactions worth more than $4 billion, as the company scrambles to plug an estimated $10 billion funding shortfall.

An Apple Inc lawyer said the iPhone and iPad maker may seek a legal order stopping the launch of Samsung Electronics Co Ltd's Galaxy S III phone in the United States later this month.

Best Buy Co Inc founder and chairman, Richard Schulze, resigned from the retailer's board on Thursday and said he was exploring options for his 20.1 percent ownership stake, a move seen as a possible precursor of a Schulze-led private takeover.

Reuters contributed to this report.

President Obama delivers a statement on the outlook of the U.S. economy; the problems in Europe, saying "it is in everybody's interest for Greece to remain in the euro zone;" and instructs Congress to act on his jobs plan, housing legislation, and tax ...

wisconsin recall election april 4 santa monica college wisconsin primary dallas fort worth airport texas tornados seattle seahawks new uniforms