Close Update: Biotech Sell-Off Weighs on Nasdaq, Dow Cushioned by Nike Rally

A late day sell-off in the biotech sector cost the Nasdaq Composite and S&P 500 all of Friday's gains, while the Dow Jones Industrial Average remained solidly in positive turf thanks to a rally in component stock Nike ( NKE ) and gains in the energy sector.

Wall Street was in the green for most of the day after Fed Chair Janet Yellen said a rate hike this year was "appropriate" and an unexpected upward revision to Q2 GDP eased investors' concerns about the state of the economy.

Stocks were significantly higher in pre-market trading on strength in Europe as well as Yellen's remarks. At a speech at the University of Massachusetts last night, Yellen indicated that the FOMC will likely raise rates in December, giving investors encouragement that the U.S. economy can overcome global economic headwinds.

There was a very brief, and shallow, wobble across Wall Street when John Boehner announced his resignation from Congress, but gains remained intact in the aftermath of Friday's upbeat economic data, specifically an unexpected upward revision to Q2 GDP, and better-than-expected improvement in consumer sentiment.

Late in the day, the rally was extinguished by another sell-off in the biotech sector, under pressure for the sixth consecutive day. The Nasdaq unravelled, taking the S&P and Dow lower in sympathy. Blue-chips recovered some of their earlier gains, closing with a triple-digit gain.

But despite Friday's impressive action, the Dow ended the week lower for the second time with a loss of 0.40%. The S&P 500 lost 1.3% in value and the Nasdaq Composite a sizeable -3.0%.

Here's where the markets stand at the close:


Dow Jones Industrial Index was down 113.35 points (+0.70%)

S&P 500 was down 0.90 points (-0.05%)

Nasdaq Composite Index was down 47.98 points (-1.01%)


FTSE 100 was up 2.47%

Nikkei 225 was up 1.76%

Hang Seng Index was up 0.43%

Shanghai China Composite Index was down 1.60%


(+) BLPH (+69.35%) Reported positive results from an interim analysis of the company's Phase 2 long-term extension study of INOpulse to treat Pulmonary Arterial Hypertension

(+) CRUS (+14.38%) Buoyed by today's launch of Apple's ( AAPL ) iPhone 6S

(+) NKE (+8.91%) Reported better-than-expected fiscal Q1 results, strong sales to China


(-) PETX (-38.97%) Canine lymphoma products AT-004 and AT-005 products will not fully capture the market opportunity

(-) SYRX (-32.50%) Priced underwritten 5.3 million share offering at 38% discount

(-) EMES (-31.20%) Withdrew its full-year 2015 distribution guidance

(-) GLPG (-27.46%) Said it will be moving its JAK1 inhibitor filgotinib into Phase 3 trial for rheumatoid arthritis by early 2016.

(-) INAP (-19.31%) Forecasting Q3 sales miss and lowering FY outlook below street view

(-) FINL (-19.62%) Reported earnings in line with Street expectations, but revenues slipped below estimates

(-) PIR (-12.34%) Reported mixed Q2 financial results that missed Wall Street expectations, and guided Q3 and FY16 below estimates

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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