U.S. stocks rebounded on Friday

Most benchmarks finished the weekly losses though

U.S. stocks rebounded on Friday, 26 September 2014 recovering most of the previous session's steep losses. Equity indices finished a cautious week on an upbeat note. The stock market received an early boost from heavily-weighted consumer discretionary and technology sectors. Both groups were underpinned by better than expected earnings. But notwithstanding Friday's solid gains, major indexes weren't able to erase what has otherwise been a tough week for stocks. Most benchmarks finished the week with losses.

The Dow Jones Industrial Average jumped 167.35 points, or 1%, to 17,113.19, but rang up a weekly loss of 1%. The Nasdaq Composite gained 45.45 points, or 1%, to 4,512.19 but was 1.5% lower over the week. The S&P 500 closed 16.86 points, or 0.9%, higher at 1,982.854, ending the week 1.4% lower.

All ten sectors ended highe rled by consumer discretionary, energy and financial sectors.

In U.S. economic news on Friday, the Commerce Department said the economy grew at a 4.6% annual pace in the second quarter, revising its estimate up from 4.2%. Market had predicted GDP would be revised up to a seasonally adjusted 4.7%.

Separately, the final September reading on the University of Michigan/Thomson Reuters consumer sentiment index remained steady at the highest level since July 2013 and well above a final August level of 82.5.

Apple shares rallied 2.9% on Thursday after a nearly 4% drop during the previous session, as the company tried to calm concerns about its new iPhone 6 Plus bending claims. Another tech name, chip maker Micron gained 6.7% after fourth-quarter results topped Wall Street's estimates late Thursday.

Nike shares jumped 12% after the athletic apparel and gear maker late Thursday posted better-than-expected earnings.

The dollar kept up its momentum as data showed the U.S. economy grew 4.6% in the second quarter, on an annual basis, matching the best performance since the recession ended in mid-2009. Dollar Index continued charging higher to extend this week's gain to 1.1%. The index will enter the final two sessions of the month after surging 3.6% so far in September.

Treasuries slumped in the morning, but the rest of the session saw a divergence among different maturities. The 10-yr note settled near its low with its yield up three basis points at 2.53%, while the long bond returned to its flat line with its yield at 3.22%.

On Monday, Personal Income (consensus 0.3%) and Spending (consensus 0.4%) data for August will be reported at 8:30 ET alongside core PCE Prices (expected 0.0%). The day's data will be topped off with the Pending Home Sales report for August (consensus -0.2%).

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