After Market: EPA's Gas Blend Plan Moves Stocks; New Highs for Dow, S&P
An EPA rule change rippled through Wall Street Friday, and it could make a difference when you go to fill your gas tank. Meanwhile it was another day, another record for both the Dow Industrials and the S&P 500. The Dow (^DJI) rallied 85 points Friday, the S&P 500 (^GPSC) rose 7, and the Nasdaq (^IXIC) gained 13 points.
All of the major averages posted solid gains for the week –- the sixth straight weekly advances for the Dow and S&P. The Environmental Protection Agency wants to scale back the target amounts of ethanol and biodiesel products that must be blended into gasoline. It says the old target may be impossible to meet. That's bad news for big agricultural companies such as Archer Daniels Midland (ADM). Its shares fell more than 3 percent. But gasoline refiners could benefit. Valero (VLO) edged higher. And consumers could benefit too: A smaller level of blended gas could mean prices at the pump edge lower.
Exxon (XOM) rose 2 percent on word that Warren Buffett's Berkshire Hathaway (BRK-A) bought a big stake in the oil giant.
Vanda Pharmaceuticals (VNDA) jumped 12 percent after an FDA panel recommended approval of the company's drug to help blind people regulate their internal body clocks. The stock has more than doubled in value this week.
Pandora (P) rose 7 percent, LinkedIn (LNKD) gained 4 percent and Yelp (YELP) rose 5 percent on positive brokerage firm comments for all three Internet plays.
And investors in another Internet IPO hit the jackpot. Shares of Zulily soared 71 percent from their $22 offering price. The company offers discounted flash sales of items designed for kids and their moms.
- Produced by Drew Trachtenberg.