Wall Street Rebounds on Upbeat GDP, But Ends Week Lower
U.S. stocks rebounded Friday following the worst selloff in nearly two months in the previous session, as investors cheered an upward revision of the U.S. economic growth and improving consumer sentiment.
The Dow Jones Industrial Average surged 167.35 points, or 0.99 percent, to 17,113.15. The S&P 500 rose 16.86 points, or 0.86 percent, to 1,982.85. The Nasdaq Composite Index jumped 45.45 points, or 1.02 percent, to 4,512.19.
Despite the rally, the benchmark indices still wrapped up the week with losses. The blue-chip Dow was down 1.0 percent this week, while the S&P 500 and the Nasdaq were 1.4 percent and 1.5 percent lower, respectively.
On the economic front, U.S. real gross domestic product (GDP) increased at an annual rate of 4.6 percent in the second quarter of 2014, marking the fastest growth rate since late 2011, according to the estimate released by the Commerce Department Friday.
The latest figure was higher than the previous estimate of a 4. 2-percent rise and followed a 2.1-percent contraction in the first quarter.
The increase in the second-quarter GDP primarily reflected positive contributions from consumer spending, exports and private inventory investment, among others.
U.S. consumer sentiment also improved further in September. The Thomson Reuters/University of Michigan's final reading of the consumer sentiment index climbed to 84.6 in September from a final August reading of 82.5.
In corporate news, Apple shares rose 2.94 percent to close at 100.75 U.S. dollars apiece, recovering from a nearly 4-percent drop in the prior session, as the iPhone maker defended itself against complaints about bent iPhone 6 Plus.
Shares of Janus Capital Group soared 43.02 percent to end at 15. 89 dollars per share. The company announced Friday that Bill Gross, world-renowned fixed income investor, will be joining Janus Capital. Gross has quit his position as chief investment officer at Pacific Investment Management, which he co-founded more than 40 years ago.
The CBOE Volatility Index, often referred to as Wall Street's fear gauge, fell 5.05 percent to end at 14.85.
In other markets, the dollar extended its gains Friday as optimistic U.S. economic data strengthened market speculations that the Federal Reserve may raise interest rates earlier than expected.
The dollar index, which tracks the greenback against a basket of major currencies, hit a four-year high of 85.521 in late trading.
In late New York trading, the euro slipped to 1.2683 dollars from 1.2747 dollars in the previous session. The dollar bought 109. 36 Japanese yen, higher than 108.69 yen of the previous session.
U.S. crude prices recovered on the better-than-expected economic growth in the second quarter, but Brent crude futures stayed flat on growth concerns over Asia and Europe and ample crude supply from Libya.
Light, sweet crude for November rose 1.01 dollars to settle at 93.54 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery was unchanged to close at 97.00 dollars a barrel.
Gold futures on the COMEX division of the New York Mercantile Exchange fell. The most active gold contract for December delivery fell 6.5 dollars, or 0.53 percent, to settle at 1,215.4 dollars per ounce.
The Dow Jones Industrial Average surged 167.35 points, or 0.99 percent, to 17,113.15. The S&P 500 rose 16.86 points, or 0.86 percent, to 1,982.85. The Nasdaq Composite Index jumped 45.45 points, or 1.02 percent, to 4,512.19.
Despite the rally, the benchmark indices still wrapped up the week with losses. The blue-chip Dow was down 1.0 percent this week, while the S&P 500 and the Nasdaq were 1.4 percent and 1.5 percent lower, respectively.
On the economic front, U.S. real gross domestic product (GDP) increased at an annual rate of 4.6 percent in the second quarter of 2014, marking the fastest growth rate since late 2011, according to the estimate released by the Commerce Department Friday.
The latest figure was higher than the previous estimate of a 4. 2-percent rise and followed a 2.1-percent contraction in the first quarter.
The increase in the second-quarter GDP primarily reflected positive contributions from consumer spending, exports and private inventory investment, among others.
U.S. consumer sentiment also improved further in September. The Thomson Reuters/University of Michigan's final reading of the consumer sentiment index climbed to 84.6 in September from a final August reading of 82.5.
In corporate news, Apple shares rose 2.94 percent to close at 100.75 U.S. dollars apiece, recovering from a nearly 4-percent drop in the prior session, as the iPhone maker defended itself against complaints about bent iPhone 6 Plus.
Shares of Janus Capital Group soared 43.02 percent to end at 15. 89 dollars per share. The company announced Friday that Bill Gross, world-renowned fixed income investor, will be joining Janus Capital. Gross has quit his position as chief investment officer at Pacific Investment Management, which he co-founded more than 40 years ago.
The CBOE Volatility Index, often referred to as Wall Street's fear gauge, fell 5.05 percent to end at 14.85.
In other markets, the dollar extended its gains Friday as optimistic U.S. economic data strengthened market speculations that the Federal Reserve may raise interest rates earlier than expected.
The dollar index, which tracks the greenback against a basket of major currencies, hit a four-year high of 85.521 in late trading.
In late New York trading, the euro slipped to 1.2683 dollars from 1.2747 dollars in the previous session. The dollar bought 109. 36 Japanese yen, higher than 108.69 yen of the previous session.
U.S. crude prices recovered on the better-than-expected economic growth in the second quarter, but Brent crude futures stayed flat on growth concerns over Asia and Europe and ample crude supply from Libya.
Light, sweet crude for November rose 1.01 dollars to settle at 93.54 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery was unchanged to close at 97.00 dollars a barrel.
Gold futures on the COMEX division of the New York Mercantile Exchange fell. The most active gold contract for December delivery fell 6.5 dollars, or 0.53 percent, to settle at 1,215.4 dollars per ounce.
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