The Dow, NASDAQ and S&P all surged by more than 1% on FridayInvesting.com — U.S. stocks bounced on Friday halting a five-day losing streak, amid rallies in the banking and energy sectors, as hopes for production cuts by OPEC sparked one of the strongest one-day moves in crude prices since the Financial Crisis.
Crude futures in Friday’s session, moving off , as energy traders reacted to a report from the Wall Street Journal that the 13-nation cartel is strongly considering slashing production in an effort to stem a prolonged downturn. On Thursday, Dow Jones, citing comments from United Arab Emirates energy minister Suhail bin Mohammed al-Mazrouei, reported that OPEC could consider lowering output as long as it receives “complete cooperation” from all of its members.
The gained 313.66 or 2.00% to 15,973.84, while the Composite index added 35.70 or 1.95% to 1,864.78, as both ended a massive sell-off which dated back to the end of last week. The , meanwhile, rose 70.67 or 1.66% to 4,337.51, driven by gains among telecommunications and pharmaceutical stocks.
On the S&P 500, all 10 sectors closed higher as stocks in the Financials, Energy and Basic Materials industries led. The Financial sector, the day’s overperformer, surged 13.17 or 3.59% to 379.76, as a 4% spike in European bank stocks spilled over into U.S. markets. Stocks in the Utility industry lagged, falling 0.34% to 226.14.
Despite Friday’s relief rally, all three major indices still remain near their lowest levels in more than a year.
The top performer on the Dow was JPMorgan Chase & Co (N:), which surged 4.38 or 8.25% to 57.45. Shares in JP Morgan soared after reports surfaced that CEO Jamie Dimon increased his personal stake in the banking giant by 500,000 shares at a cost of $25 million. Dimon could be looking to inspire confidence in his company’s fledgling stock, which has slumped more than 16% over the last three months.
The worst performer was Johnson & Johnson (N:), which dropped 0.02 or 0.02% to 101.68. Johnson & Johnson (N:) finished just ahead of Boeing Company (N:), which inched up 0.05% to 108.49. It came one day Boeing (N:) shares plunged nearly 7%, amid reports that the Securities and Exchange Commission (SEC) is investigating whether the jet manufacturer violated securities laws with its accounting for 787 Dreamliner and 747 jumbo aircraft sales. Johnson & Johnson ended the session as the lone Dow component to close in the red.
The biggest gainer on the NASDAQ was Baidu Inc (O:), which surged 11.46 or 8.12% to 152.67. Shares in the Chinese web services company jumped ahead of the reopening of stock markets nationwide on Monday after a five-day holiday. The worst performer was Activision Blizzard Inc (O:), which fell 2.16 or 7.08% to 28.36 after the video games publishing company posted disappointing earnings and forward guidance on Thursday.
The top performer on the S&P 500 was Wynn Resorts Limited (O:)which soared 9.49 or 15.90% to 69.18, after reporting a 4% increase in quarterly revenues on Thursday after the bell. Wynn Resorts CEO Steve Wynn also disclosed that the company increased its investment in a new project in Macau to $3.5 billion, even as its revenues in the Chinese casino tumbled 44% on the period. The worst performer was Chesapeake Energy Corporation (N:), which fell 0.18 or 10.11% to 1.60.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 2,447-637 margin.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.