US stocks rebounds to end week on a high
S&P500 and DJIA advance, NASDAQ slips
Tech stocks fall
Dell reject $14 offer of 3rd party shares
US stocks rebounded from Thursday’s declines of 2.5 percent, shaking off its biggest single day slump in seven months to end the week on a high note. Indices across the globe plummeted yesterday as they responded to Federal Reserve Chairman Ben Bernanke’s comments, confirming that the US central bank will begin to slow down its monetary stimulus within the next six months if the US economy looks stable.
The S&P 500 advanced by 4.24 points, or 0.27 percent, to end the week at 1592.43. The Dow Jones Industrial Average climbed 41.08 points, or 0.28 percent, reaching 14,799.40 by the close of trading in New York. The US’s only declining major index was the NASDAQ which fell by 7.39 points, or 0.22 percent, ending the week at 3357.25 — primarily due to the technology heavy nature of its constituents. Volume was substantially up for the day, with more than 10 billion shares being bought and sold in the US alone as futures expired, requiring investors to rearrange that portfolio. The 10.7 billion shares traded was the most activity seen in the US since late 2011.
The potential privatization of Dell took another twist today, as the company’s founder Michael Dell rejected the notion for the company to buy all remaining stocks owned by third parties for $14 per share. Michael Dell is currently trying to take the company off the markets and has made an official offer of $13.65 per share which currently remains on the table. He said that purchasing all remaining shares of $14 each would hamper the company in the future due to its reduced ability to make the financial maneuvers that are required in the fast-paced technology industry.
Procter & Gamble Co. led to Dow Jones Industrial Average in gains with an advance of 2.90 percent as consumer staples performed well on the final day of the week. Johnson & Johnson also advanced by 0.7 percent, while Wal-Mart stores Inc. advanced by 0.66 percent.
While the potential privatization of Dell kept them out of declines, the rest of the technology sector slipped. Hewlett-Packard Co. declined by 2.31 percent, Microsoft Corp. fell by 0.67 percent – despite performing a U-turn on the DRM features of their new upcoming system Xbox one, and United Technologies fell by 0.18 percent.