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Russell rebalancing lifts stocks

Friday, June 27, 2014 - 02:11

June 27 - Summary: Late day lift for stocks; Michaels, Nextera IPO's; Dollar General CEO to step down; KB Homes beats earnings forecasts; Consumer sentiment on the rise. Bobbi Rebell reports.

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Volume jumped higher at the end of the trading day Friday- driven by the rebalancing of the Russell indexes. The major indexes closing out the day with gains. Technology driving gains but Dow component Dupont the big loser after cutting its outlook. For the week- The Dow and the S&P lost ground- but the Nasdaq rose for the 6th week out of 7. A couple of notable new offerings hit the market. At the Nasdaq, Michael's barely budging in its debut. The top U.S. arts and crafts retailer had priced at the low end of its range- at $17 a share. The company will use part of the proceeds to cut down its large debt load. NextEra Energy Partners had a strong first day at the New York Stock Exchange. Shares of the clean energy company jumped higher from their offering price of $25- which was at the top of the expected range. Dollar General stock down- on news its CEO plans to step down. Billionaire investor Carl Icahn said earlier this month he was considering pushing the company to merge with Family Dollar. More GM recalls. A joint venture of GM's in China will recall 194,000 locally made Buick vehicles- linked to a headlight glitch. Wal-Mart losing a unionization case in Canada. The country's top court ruled the retailer violated labor code by closing a store after its workers tried to unionize. Shares of KB Home on the rise. The homebuilder's earnings were better than expected- their average selling price? up 10 percent to $319,000. U.S. consumers are still optimistic the sluggish first quarter was because of the harsh winter - and the economy has already turned the corner. The Thomson Reuters/University of Michigan index on consumer sentiment came in at 82.5- above forecasts. Turning to Europe, the German government has canceled a contract with U.S. telecom Verizon- it's part of its internal communications overhaul prompted by revelations last year by Edward Snowden of U.S. spying. Shares of Verizon were slightly lower on Friday. As for the major European indexes- they closed mixed- ending a week-long selloff.