Markets

Close Update: Stocks Rebound as G7-Fueled Fears Dissolve

US stocks closed higher on Friday as gains in the consumer sector and sub-3.0% yield in the 10-year note helped offset early weakness stemming from discord at the Group of Seven meeting.

The major indices all closed the week higher with the Dow posting a sizable gain of 2.8%, the S&P 500 up 1.6% and the Nasdaq higher by 1.2% from last Friday's close.

Stocks were under pressure overnight and continued to trade lower for the first half of the day as the hostile relationship with the US between Canada and France into the G7 meeting inflamed fears of a trade war and spooked risk adverse investors.

The defensive tone was exacerbated by Apple ( AAPL ) which lost ground on reports that the company warned its suppliers iPhone sales will be down 20% this year. The news spread through the semiconductor sector and prevented the Nasdaq from turning positive until later in the day.

Friday's economic data generate little interest as Wall Street was distracted by the combative overtones to the G7 meeting, and meltdown in emerging market currencies. Wholesale inventories were up by just 0.1% in April matching the consensus estimate, while sales shot up 0.8%, driving down the inventory/sales ratio to 1.28.

Here's where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index was up 75.12 points (+0.30%)

S&P 500 was up 8.66 points (+0.31%)

Nasdaq Composite Index was up 10.44 points (+0.14%)

GLOBAL SENTIMENT

FTSE 100 was down 0.30%

Nikkei 225 was down 0.56%

Hang Seng Index was down 1.76%

Shanghai China Composite Index was down 1.36%

UPSIDE MOVERS

(+) EDAP (+62.90%) Received FDA 501(k) clearance for prostate tissue device

(+) TPIV (+51.26%) Priced $70 million private placement

(+) SVRA (+21.13%) Evercore ISI initiated coverage at outperform, $40 price target

DOWNSIDE MOVERS

(-) TAX (-13.89%) Accounting firm resigned

(-) CPST (-12.71%) Reported mixed Q4 results, announced $25 million share offering

(-) MVIS (-9.09%) Announced $18 million stock offering

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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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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