By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rebounded on Friday,
recovering most of the previous session's steep losses as
Thursday's rout inspired bargain hunters, with most of Friday's
broad-based gains led by energy and technology names.
But notwithstanding Friday's solid gains, major indexes weren't
able to erase what has otherwise been a tough week for stocks. Most
benchmarks finished the week with losses.
The S&P 500 (SPX) closed 16.86 points, or 0.9%, higher at
1,982.854, ending the week 1.4% lower.
The Dow Jones Industrial Average (DJI) jumped 167.35 points, or
1%, to 17,113.19, but rang up a weekly loss of 1%. The blue-chip
index moved more than 100 points in each of the five sessions this
week. Nike's 12% jump on better-than-expected results added 61
points to the Dow industrials.
The Nasdaq Composite (RIXF) gained 45.45 points, or 1%, to
4,512.19 but was 1.5% lower over the week.
"September is a difficult month and short-term volatility is
normal," said Kenny Polcari, director of NYSE Floor Operations on
behalf of O'Neil Securities, Inc.
"We've had lots of reason to be nervous this week and as soon as
some of the technical support levels were hit we saw [automated
algorithms] kick in. Market will now test those resistant levels,"
Polcari added.
Markets also weighed stunning news that Bill Gross, founder is
leaving the firm he founded, to join Janus Capital. The news sent
10-Year Treasury yields higher. Also read: Investors should think
twice about following Bill Gross to Janus
Data: Helping to hearten markets was news that the U.S. economy
in the second quarter matched its best performance since the
recession. But whether an accelerated pace of growth in the year
ahead can be sustained is still unclear.
The U.S. economy grew at a 4.6% annual pace in the second
quarter. The increase in real gross domestic product was revised up
from 4.2%, mainly because of higher exports and business
investment, the Commerce Department said Friday. The biggest gains
came in business investment, a good sign for the economy in the
months ahead.
Separately, the final September reading on the University of
Michigan/Thomson Reuters consumer sentiment index remained steady
at the highest level since July 2013 and well above a final August
level of 82.5.
Stocks to watch: Apple Inc. shares (AAPL) rallied 2.9% on
Thursday after a nearly 4% drop during the previous session, as the
company tried to calm concerns about its new iPhone 6 Plus bending
claims. One analysts reiterated his 'buy' rating and in a note to
clients told investors to ignore the 'media blitz'. Also read: It's
time to chill out over 'bendgate' and buy Apple
Another tech name, chip maker Micron (MU) gained 6.7% after
fourth-quarter results topped Wall Street's estimates late
Thursday. For more on today's movers, read our Mover & Shakers
column.
Meanwhile, Nike (NKE) shares jumped 12% after the athletic
apparel and gear maker late Thursday posted better-than-expected
earnings. Also read: After 34 years as a public company, Nike is
still a growth stock
Other markets: Overnight, Australia's S&P/ASX 200 erased its
gains for the year, taking cues from Wall Street's selloff and a
slump in iron-ore prices. European stocks were higher, but major
benchmarks recorded weekly losses.
Gold futures (GCZ4) turned down nearly $3 an ounce while oil
futures(CLX4) headed slightly higher.
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