Nasdaq leads broad stock rally, oil sinks to $62 level

Johnson & Johnson CEO Alex Gorsky will transition to role of exec. chairman

U.S. stock indexes rallied Friday, but were unable to shake off losses for the week as investors remained cautious over the timeline of the Federal Reserve’s plans to taper its asset purchases. 

The Dow Jones Industrial Average climbed 225 points, or 0.64%, while the S&P 500 index and the Nasdaq Composite index gained 0.81% and 1.19%, respectively. All three of benchmarks lost between 0.5% and 1% for the week.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 35412.98 +154.37 +0.44%
SP500 S&P 500 4516.34 +29.88 +0.67%
I:COMP NASDAQ COMPOSITE INDEX 15124.972187 +103.16 +0.69%

Minutes from the most recent Fed meeting released earlier this week showed the central bank was considering tapering its asset purchases later this year, although no firm date has been set. Next week’s Jackson Hole Symposium could provide clues as to when the taper will begin. 

In stocks, Deere & Co. beat on both the top and bottom lines and raised its full-year earnings forecast as customers looked to upgrade farm machines and construction equipment. 

Ticker Security Last Change Change %
DE DEERE & CO. 341.69 +9.62 +2.90%

Discount retailer Ross Stores Inc. posted strong quarterly results, but its profit forecast for the current quarter was well below analyst expectations due to rising freight and supply chain costs and ongoing COVID-19 expenses. 

Ticker Security Last Change Change %
ROST ROSS STORES, INC. 108.68 -0.82 -0.75%
FL FOOT LOCKER, INC. 47.88 +0.34 +0.72%

Foot Locker Inc. reported same-store sales that blew past Wall Street estimates amid strong demand for women’s and children’s footwear. 

In deals, Adobe Inc. said it would buy Frame.io, a media collaboration platform, for $1.27 billion in cash. 

Ticker Security Last Change Change %
ADBE ADOBE, INC. 636.22 +13.39 +2.15%

Elsewhere, Johnson & Johnson CEO Alex Gorsky announced he will early shift to the role of executive chairman early next year. He will be replaced by Joaquin Duato, a longtime deputy. 

Ticker Security Last Change Change %
JNJ JOHNSON & JOHNSON 164.61 +4.57 +2.86%

Coinbase Global Inc. has received approval from its board of directors to buy $500 million in cryptocurrencies, according to CEO Brian Armstrong. 

Ticker Security Last Change Change %
COIN COINBASE GLOBAL, INC. 306.55 +13.21 +4.50%

In commodities, West Texas Intermediate crude oil slid $1.37 to $62.32 a barrel and gold edged up 80 cents to $1,781 an ounce. 

Overseas markets were mixed. 

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In Europe, Germany’s DAX 30 ticked up 0.27%, France’s CAC 40 gained 0.31% and Britain’s FTSE 100 added 0.41%. 

Hong Kong’s Hang Seng index tumbled 1.84%, entering a bear market, while China’s Shanghai Composite index and Japan’s Nikkei 225 dropped 1.1% and 0.98%, respectively.