Closing Bell: Wall Street Rebounds on Modest Optimism About Shutdown

Trading On The Floor Of The NYSE As S&P 500 Falls Most In A Month On Federal Shutdown
Scott Eells/Bloomberg via Getty Images
Stocks rose Friday on Wall Street, recovering from recent losses even as investors remained focused on the ongoing budget stalemate in Washington, where a partial shutdown of the federal government has weighed on markets all week. It appears that investors foresee the legislative bickering over the budget and debt limit coming to an end sooner rather than later, despite the rhetoric from Capitol Hill.

The Dow Jones industrial average (^DJI) rose 76. points, or 5 percent, to 15,073, the Standard & Poor's 500 index (^GPSC) gained 12 points, or 0.7 percent, to 1,690 and the Nasdaq composite index (^IXIC) advanced 33 points, or 0.9 percent, to 3,808.

Washington appears no closer to resolving the government shutdown or the looming deadline later this month to increase the government's borrowing limit so it can continue to pay its bills. On Friday, Republicans in the House of Representatives said they would continue to pass small spending bills that would fund select parts of the government, such as Head Start, but that tactic has inspired no interest from Democrats in the Senate.

The political noise out of Washington has come to dominate nearly all conversations on Wall Street. Under normal circumstances, traders would have the government's monthly jobs report to parse through on the first Friday of the month. But the shutdown has forced the Labor Department to postpone the release of September's data for at least the foreseeable future.

The S&P's biggest loser was struggling retailer J.C. Penney (JCP), which fell to a 31-year low earlier in the day, hitting $7.82 a share. The stock ended Friday's session down 6.7 percent at $7.85 a share.

In commodities trading, U.S. benchmark crude for November delivery rose 30 cents to $103.61 a barrel, while gold lost $7.60 to close the week at $1,309.80 an ounce.

In corporate news, Twitter Inc. gave potential investors their first glance at its financials 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.

Tweeter Home Entertainment Group, a specialty consumer electronics company that went bankrupt in 2007, saw its most active day of trading in more than six years Friday, even though it has nothing to do with the social media site. The stock, which trades over the counter, closed Thursday at a price of less than a penny a share, and Friday hit a high of 15 cents a share, before paring gains to trade at 5 cents, a 669 percent rise. More than 11.7 million shares had traded by midday. Tweeter trades over the counter, under the "TWTRQ" symbol, while Twitter in its IPO proposed using "TWTR."

Shares of electric car maker Tesla Motors (TSLA) made a partial recovery Friday after two days of big declines following news of a fire in one of its $70,000 Model S cars. Tesla's stock, which has risen 400 percent so far this year, advanced 4.4 percent to $180.95. The carmaker's shares lost more than 10 percent of their value after news of the fire broke Wednesday.

More Stocks in the News: What to Watch Monday: Note: Many scheduled government reports have been postponed indefinitely because of the partial government shutdown.

-Compiled from staff and wire reports.