Business

Investors snap up beaten-down stocks

Traders worked the floor of the New York Stock Exchange.
Traders worked the floor of the New York Stock Exchange. Bloomberg

The stock market bounced back on Friday as investors picked up companies that had dropped earlier in the week. Major indexes recovered nearly all their losses from a fall the day before.

“It’s an odd day in the markets,” said Jack Ablin, chief investment officer at BMO Private Bank. The news out Friday was mostly disappointing, he said. Big corporations’ earnings reports weren’t all that good.

Expedia was an exception. The online travel company turned in sales that topped Wall Street’s estimates, driving its stock up $7.46, or 8 percent, to $101.69.

The Standard & Poor’s 500 index climbed 22.78 points, or 1.1 percent, to finish at 2,108.29. That’s after dropping 1 percent the day before.

The Dow Jones industrial average gained 183.54 points, or 1 percent, to 18,024.06, while the Nasdaq composite rose 63.97 points, 1.3 percent, to 5,005.39.

The Nasdaq lost 1.7 percent for the week as investors sold many of the technology companies that have fared well this year.

LinkedIn plunged after the online networking service warned of weaker earnings in the months ahead, a result of the stronger dollar and the company’s pending purchase of Lynda.com, an online learning company. Twitter continued a slump started earlier in the week when the company turned in disappointing sales and cut its revenue outlook. Twitter dropped $1.12, or 3 percent, to $37.84, while LinkedIn lost $46.92, or 19 percent, to $205.21.

Roughly a third of all the companies in the S&P 500 reported first-quarter results this week, and the news was mixed. Falling oil prices and a rising dollar hammered many of them. Analysts expect companies in the S&P 500 will say overall earnings inched up 0.6 percent compared with the same period of last year, according to S&P Capital IQ, a provider of financial information. But revenue is expected to drop 1.4 percent.

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