Stocks ended a mini-losing streak on Friday, led by upbeat news from Intel (INTC). The Dow Jones industrial average (^DJI) rose 41 points, after sliding more than 200 over the previous two days. The Nasdaq composite (^IXIC) gained 13 and the Standard & Poor's 500 index (^GPSC) added 6 points.
Those modest gains did little to trim the loss for the week. The major averages posted their biggest weekly declines in more than two months.
Intel is a component of all three big indexes, and it jumped 7 percent after raising its revenue guidance for the current quarter. The company sees stronger business demand for PCs than it previously expected. Intel shares are up 23 percent over the past six months.
The Intel news had a ripple effect. Computer maker Hewlett-Packard (HPQ) rose more than 5 percent and Microsoft (MSFT) gained 1½ percent. Part of the increased demand Intel points to is tied to corporate buyers who need to replace their Windows XP machines, because Microsoft has stopped providing technical support for that platform. But Apple (AAPL) lost more than 1 percent. The stock is down since its 7-for-1 stock split took effect on Monday.
There were two other big stories that had some legs beyond the companies directly involved. Open Table (OPEN) agreed to be acquired by Priceline (PCLN) for $2.6 billion. Open Table, which provides restaurant reservations, jumped 48 percent. Other online service providers rode the coattails of that deal. Yelp (YELP) gained 14 percent and Groupon (GRPN) gained 4 percent.
In the retail arena, Express (EXPR) jumped 21 percent after a private equity firm took a 9.9 percent stake in the teen retailer and indicated it may make a buyout offer.
That gave a boost to Aeropostale (ARO) and American Eagle (AEO), which both rose more than 2 percent. Abercrombie & Fitch (ANF) gained 1½.
Elsewhere, International Game Technology (IGT) gained 10½ percent on a Reuters report that a bidding war could erupt for the maker of slot machines.
Karyopharm Therapeutics (KPTI) soared 80 percent on positive news from a clinical trial on its treatment of multiple myeloma. But OncoMed Pharmaceuticals (OMED) fell 11 percent after halting two drug trials due to adverse events.
What to Watch Monday:
- The New York Federal Reserve releases its survey of manufacturing conditions in New York state at 8:30 a.m. Eastern time.
- The Federal Reserve releases industrial production for May at 9:15 a.m.
- The National Association of Home Builders releases its housing market index for June at 10 a.m.
- Korn/Ferry International (KFY) reports quarterly financial results after U.S. markets close.