Dollar hits 8-month high; stocks set for weekly gain

The dollar rose to its highest since Feb. 3 against a basket of currencies on Friday as investors increased bets on higher U.S. interest rates, while a measure of world stocks looked set for its first weekly gain in four weeks despite some soft U.S. corporate results.

On Wall Street, energy and healthcare stocks weighed on the S&P 500 and Dow, but Microsoft at all-time highs kept the Nasdaq in positive territory. A potential merger between AT&T and Time Warner lifted the latter’s shares to their highest in 15 years.

GE (GE.N) dampened sentiment after the conglomerate cut its full-year revenue growth target and narrowed its profit forecast. GE’s weak report came on the heels of lackluster results from heavyweights such as Verizon (VZ.N) and Travelers (TRV.N) this week.

“If companies cannot beat estimates in this (low-rate) environment, it raises the question of what will happen when the Fed raises rates in December,” said Adam Sarhan, chief executive at Sarhan Capital.

The Dow Jones industrial average .DJI fell 26.29 points, or 0.14 percent, to 18,136.06, the S&P 500.SPX lost 2.25 points, or 0.11 percent, to 2,139.09 and the Nasdaq Composite .IXIC added 10.31 points, or 0.2 percent, to 5,252.14.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.4 percent and the pan-European STOXX 600 index closed a hair lower. World stocks, as measured by MSCI’s world index .WORLD, were still on track for their first week of gains since September.