Stocks rebounded Friday, erasing Thursday's steep sell-off as tensions eased over the downing of a Maylasia Airlines jet and the start of a ground offensive in the Gaza Strip by Israeli forces. All 10 industry sectors in the S&P 500 finished in the black, led by shares of technology and healthcare companies, which were hit hard earlier in the week when the Federal Reserve questioned values of so-called momentum stocks. Commodity-related stocks underperformed as investors sought out riskier asset plays.
Debut Activity
Friday's gains also picked up support from several well-received IPOs. Sage Therapeutics (SAGE) rose nearly 67% in its market debut after the biopharmaceutical firm earlier priced its initial public offering of 5 million shares at $18 apiece, the top of its expected range. Other first-day winners on Friday included enterprise software firm TubeMogul (TUBE) and SunEdison (NYSE:SUNE) spinoff TerraForm Power Inc. (TERP).
Healthcare stocks continued to enjoy a boost from ongoing mergers and acquisition activity, with Shire Plc (NASDAQ:SHPG) accepting AbbVie's (NYSE:ABBV) $55 billion buyout offer while Gentiva Health Services Inc. (NASDAQ:GTIV) finished with a 16% advance after saying another suitor has emerged with a $17.25 a share offer, trumping Kindred Healthcare's (NYSE:KND) $16 bid.
In energy futures, Crude Oil for August delivery closed down slightly to $103.13 per barrel amid concerns about supply disruptions.
In metals futures, August Gold closed down 0.57% at $1,309.40 per troy ounce, down 2.1% for the week, with September Silver settling down 1.2% to $20.89 per ounce. September Copper was up 0.13% at $3.19 per pound.
Here's Where The Markets Stood At The Close
US MARKETS
- Dow Jones Industrial Index up 123.37 (+0.73%) to 17,100.18
- S&P 500 up 20.10 (+1.03%) to 1978.22
- NASDAQ Composite Index up 68.70 (+1.57%) to 4,432.15
GLOBAL SENTIMENT
- FTSE 100 was up 0.17% at 6,749.45.
- Nikkei 225 was down 1.01% at 15,215.71.
- Hang Seng Index was down 0.28% at 23,454.79.
UPSIDE MOVERS
- (+) GOOG - Despite Q2 earnings miss shares gain as revenue trumps estimates.
- (+) SWKS - Shares soar on the back of better-than-expected Q3 results, guidance.
- (+) SHPG - Inks pact to be acquired by AbbVie
DOWNSIDE MOVERS
- (-) GE - Posts in-line Q2 results, plans IPO of Synchrony Financial.
- (-) AMD - Misses Q2 earnings expectations.
After Hours Stock News From Midnight Trader.
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