Good economic and corporate news helped the stock market stage a rebound at the end of a turbulent week of trading. Nike jumped after turning in higher profits, leading the Dow Jones industrial average higher.
The Standard & Poor’s 500 index, the benchmark for most mutual funds, still lost 1.4 percent for the week. The biggest drop came Thursday, the worst day for the stock market since July 31.
A steep drop one day often is followed by gains the next as investors hunt for beaten-down stocks. “After yesterday, it’s only normal to get a little bit back because people tend to buy on the dips,” said Jason Pride, director of investment strategy at Glenmede Trust.
The Dow surged 167.35 points, or 1 percent, to close at 17,113.15 on Friday. The S&P 500 index rose 16.86 points, or 0.9 percent, to 1,982.85, and the Nasdaq composite climbed 45.45 points, or 1 percent, to 4,512.19.
The day started with good news. The government reported that the U.S. economy expanded at an annual rate of 4.6 percent in the spring, the fastest pace in more than two years. That was followed by a strong reading of consumer sentiment this month.
Nike jumped 12 percent after reporting that solid sales and lower taxes helped drive its quarterly profit up 23 percent. Both its earnings and revenue beat Wall Street’s estimates. Nike’s stock gained $9.75 to $89.50, the largest gain among the 30 big companies in the Dow.
The price of oil increased on expectations of rising demand in the U.S. Benchmark U.S. crude rose $1.01 to close at $93.54 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, remained unchanged at $97.00 a barrel on the ICE Futures.
