* Apple reportedly close to deal for Beats Electronics
* Momentum shares like Gilead, Netflix rise
* Dow up 0.1 pct; S&P 500 off 0.01 pct; Nasdaq up 0.3 pct
(Updates to late afternoon)
By Caroline Valetkevitch
NEW YORK, May 9 U.S. stocks barely budged on
Friday, with Apple's slide offset by a rebound in high-growth
Apple Inc was the biggest drag on both the
benchmark S&P 500 index and the Nasdaq 100 on news that
it is close to paying a record $3.2 billion for Beats
Electronics, an expensive foray into music streaming and
headphone gear, two people with knowledge of the matter said.
Some analysts questioned whether Beats, valued at $1 billion
during its last funding round in September, was worth that
price. Apple shares fell 0.6 percent to $584.65.
But momentum names mostly advanced after a volatile week.
Shares of Gilead Sciences Inc gained 1 percent to
$79.48. Netflix Inc shares rose 1.6 percent to $326.63
after the company increased the price of its most popular video
streaming plan by $1 a month.
"We've seen days of investors trying to see if there's a
bottom in these Nasdaq stocks," said Rick Meckler, president of
hedge fund LibertyView Capital Management in Jersey City, New
"There's some fear among investors that their steep
fall-offs are a precursor of something to the broader market,
and when they rebound, even temporarily, it seems to give
confidence to the overall market."
The S&P 500 has alternated between gains and losses each day
this week, and the Nasdaq has dropped for three straight
sessions - its longest losing streak since early April - as
Internet-related stocks came under pressure.
The Dow Jones industrial average rose 9.41 points or
0.06 percent, to 16,560.38. The S&P 500 dipped just 0.19
of a point or 0.01 percent, to 1,875.44. The Nasdaq Composite
Index added 11.353 points or 0.28 percent to 4,062.848.
The Russell 2000 index of small-cap companies was up
The S&P 500 and the Nasdaq were still on track to post
declines for the week.
Healthcare stocks also rose, with shares of Merck up
0.6 percent at $55.14 a day after U.S. health regulators
approved a blood-clot prevention drug developed by Merck for use
by patients who have had a heart attack or who suffer from
blockages in the arteries of the legs. The S&P healthcare index
was up 0.3 percent.
Among the day's big decliners, Rocket Fuel Inc
shares tumbled 25.3 percent to $20.76 after the technology
provider for Web-based video advertising forecast
current-quarter revenue far below expectations, prompting
downgrades from Goldman Sachs and BMO Capital.
(Additional reporting by Herbert Lash and Chuck Mikolajczak;
Editing by Bernadette Baum, Nick Zieminski and Jan Paschal)