* Major indexes rebound after week of losses
* Shutdown boosts fears that debt limit decision will be
* IPO filing shows Twitter had loss in first half of year
* Indexes: Dow up 0.6 pct, S&P up 0.7 pct, Nasdaq up 1 pct
By Angela Moon
NEW YORK, Oct 4 U.S. stocks rose on Friday after
losses driven by a federal budget stalemate, four days of a
partial government shutdown and worries about a possible U.S.
debt default if Congress fails to raise the U.S. borrowing
The gains accelerated in late afternoon. The Nasdaq gained
more than 1 percent while the benchmark S&P 500 index
rose about 0.8 percent. The S&P 500, which closed below its
50-day average on Thursday, was on pace to end the week flat.
Political wrangling continued as Republican House Speaker
John Boehner and House Majority Leader Eric Cantor reiterated a
call for negotiations but did not indicate any change in their
House Republicans have tried unsuccessfully to use the
emergency funding bill to delay the new healthcare law known as
Obamacare and attach provisions that would only fund certain
Democrats and President Barack Obama want a simple vote on
funding the federal government.
The shutdown has made investors nervous as it drags on, but
the losses from it are relatively limited. The more serious
issue, investors say, is if the shutdown continues and becomes
tied up with the need for a divided Congress to raise the debt
limit and avoid an unprecedented U.S. default.
"I think the market will be in a much nastier mood next week
if we still don't have a deal," said Joseph Quinlan, chief
market strategist at U.S. Trust Private Wealth Management.
The S&P 500 has fallen for nine of the past 12
sessions, but several stock sectors rose on Friday, including
materials, which were up 1.2 percent, and healthcare up 1
percent. Dow Chemical rose 2.9 percent.
The CBOE Volatility Index, a measure of investor
anxiety, has been rising lately but was down 5.4 percent to
16.72 on Friday, still at subdued levels. The highest the index
has gone this year is around 20.
The Dow Jones industrial average was up 82.38 points,
or 0.55 percent, at 15,078.86. The Standard & Poor's 500 Index
was up 12.41 points, or 0.74 percent, at 1,691.07. The
Nasdaq Composite Index was up 36.51 points, or 0.97
percent, at 3,810.85.
The S&P's biggest loser on Friday was struggling retailer
J.C. Penney Co, which fell to a 31-year low during the
session, hitting $7.82 a share. The stock was later down 6.3
percent to $7.88.
Potbelly Corp said late Thursday its initial public
offering of 7.5 million shares had priced at $14 each. In its
first day of trading, the stock more than doubled to $31.84,
with more than 14 million shares changing hands.
Government economic reports have been delayed by the
shutdown, and the September payrolls report from the Labor
Department was not released Friday as scheduled.
Twitter Inc gave potential investors their first glance at
its financials on Thursday when it publicly filed documents for
an initial public offering. The information showed that revenue
at the social networking company almost tripled in 2012, though
it posted a loss in the first half of 2013.
Dennis Lockhart, president of the Federal Reserve Bank of
Atlanta, said the shutdown would hurt growth in the last quarter
of this year, while the Bank of Japan said an extended budget
standoff would have a severe global impact.