Stocks rallied on Friday with the major indexes closing up more than one percent. Bobbi Rebell reports.
Increased hopes of a Greek debt deal extended the rebound on Wall Street. Tech and telecom shares, like Apple and Cablevision, spearheaded the rally. Greece's last-minute concessions to its creditors raised investors' optimism over a deal. Even Fed chair Janet Yellen's reaffirmation that the Fed expects to raise interest rates this year didn't dampen the enthusiasm of investors. She gave no hint over how many times the Fed would lift rates this year. She said, she remains concerned that labor markets remain weak. For the week, the Dow, S&P 500, Nasdaq were mixed. Investors got positive news on the economy. Wholesale inventories rose in May, reinforcing the view that growth should rebound in the second quarter. Apple snapped its five-session losing streak following a big equities rebound in China, Apple's top market for iPhone sales in the first quarter. Samsung will try to one-up Apple by moving up its launch date for the new Galaxy Note phablet to mid-August, says a source. Costco got a boost from an upgrade. Oppenheimer raised its rating to "outperform" from "perform." The investment bank said an increase in membership fees and an end to increased IT spending could boost the retailer's earnings. American Airlines shares got a lift. The carrier lowered its plans for capacity expansion in the U.S. Investors have been calling on it to slow its growth because travel demand is weaker than expected. General Motors is recalling nearly 780,000 crossover sport utilities. The automaker says the rear power lift gates could fall and hit people. The recall covers the Buick Enclave, Chevy Traverse, GMC Acadia, and the Saturn Outlook. Losing ground: Gap's shares. The apparel retailer's comparable store sales fell more than expected in June. UBS downgraded the shares to "neutral" from "buy." Stocks surged in Europe. Investors were relieved by the rebound in Chinese stocks and prospects of a Greek debt deal.