May 16 - Summary: Rocky week for markets; GM's $35m fine; TrueCar IPO; JCP, Nordstrom up on stronger results; Darden selling Red Lobster. Bobbi Rebell reports.
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A late day bounce back in small caps helped stocks close out Friday's trading session higher, coming back from a very weak couple of sessions. All the major indexes closed up for the day. For the week though only the Nasdaq closed higher.
Nuveen Asset Management's Bob Doll says the bears should back off:
SOUNDBITE: BOB DOLL, CHIEF EQUITY STRATEGIST, NUVEEN ASSET MANAGEMENT (ENGLISH) SAYING:
"I think with the volatility moving up as a result of liquidity lessening in the market we are going to get- we've had a bumpy ride. I think we'll have more bumps along the way. But I do think the overall direction will continue to remain going higher. there are no signs that this economic recovery is going to end, as punk as it has been. And absent a recession its rare to have big down moves in the stock market. "
General Motors will pay $35 million as part of the U.S. Transportation Department's investigation into the handling of faulty ignition switches in some vehicles. GM also agreed to take part in unprecedented oversight requirements. Other investigations continue. GM stock held steady.
Shares of TrueCar had a truly good showing on their first day of trading on the Nasdaq despite pricing at just $9 a share, well below its expected range. Microsoft founder Paul Allen's Vulcan Capital was one of the main investors in the car comparison site.
Going old school paid off JC Penney sending its stock soaring. The retailer reported its second quarter in a row of same store sales growth thanks to its return to no frills merchandise.
Nordstrom stock also got a huge bump on Friday reacting to its better-than-expected results.
Darden is selling its Red Lobster seafood chain whose same store sales fell five of the last six quarters. Private equity firm Golden Gate Capital will pay $2.1 billion in cash. Shareholders had opposed a sale saying it would destroy shareholder value. Darden stock fell on the news.
New hope the housing market may be stabilizing. U.S. housing starts jumped in April and building permits hit their highest level in six years.
In Europe, takeover activity propped up shares. The major indexes were mostly higher.
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