Wall Street bounces back despite uncertainties in Cyprus

Source:Xinhua Published: 2013-3-23 13:37:01

US stocks closed higher on Friday, bouncing back from Thursday's slip as investors took the dip as buying opportunities despite lingering uncertainties in Cyprus.

The blue-chip Dow Jones Industrial Average index surged 90.54 points, or 0.63 percent, to 14,512.03. The broader Standard & Poor's 500-stock index jumped 11.09 points, or 0.72 percent, to 1,556. 89. The tech-heavy Nasdaq Composite Index was up 22.40 points, or 0.70 percent, to 3,245.00.

"If the 10-year treasury reverts back just to its average yield from 2000 through 2010, do you know how much it will go down? 23 percent. 23 percent. That's a huge risk," billionaire Wilbur Ross, chairman & CEO of WL Ross & Co., said Friday on CNBC. By contrast, Ross said stocks did not seem grossly expensive.

The money flowing into stocks from bonds has contributed to the equity market rally since the beginning of this year.

The main stock indices opened higher, following a modest rebound in the European stock market on Friday, as market concerns eased somewhat after Cyprus agreed with Greece on a takeover of the Greek units of Cypriot banks.

The market seemed a little optimistic about a possible deal to be struck for Cypriot lawmakers before the European Central Bank would cut off its emergency help to the country next Monday.

There were no important economic data released for the United States on Friday.

The market regained momentum from strong retail sales from notable brands. Nike's profit leapt 55 percent in its fiscal- third-quarter, pushing its shares 11.06 percent higher to close at 59.53 US dollars. Tiffany shares advanced 1.94 percent to 69.23 dollars after the Luxury jewelry retailer posted a better-than- expected increase of 4 percent for its revenues in its fiscal- fourth-quarter.

The consumer discretionary and staples led the gains among the main sectors of S&P 500.

In corporate news, Apple shares moved up 2.03 percent to 461.91 dollars as the tech giant will reportedly unveil iPhone 5s and iPad 5 on June 29 to mark the sixth anniversary of the introduction of its original iPhone.

However, BlackBerry tumbled 7.74 percent to 14.91 dollars as the company's new BlackBerry Z10 was reportedly greeted with mild reaction from US consumers.

For the week, the Dow edged down 0.01 percent, and the S&P 500 lost 0.24 percent while the Nasdaq fell 0.13 percent.

Posted in: Economy

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