And the Reuters/University of Michigan Surveys of Consumers found July consumer sentiment rose to 90.4 from 85.3 in June. That was higher than expected.
Let's take a look at the numbers. The Dow Jones Industrials plummeted 208 points closing at 13,265; and Friday's loss of 24 points capped the worst week for the S&P500 in nearly five years the S&P ended at 1,459, and the Nasdaq lost 37 points to finish at 2,562.
In company news, one bright spot in an otherwise tough week was Kyphon Incorporated. Shares in the medical device maker shot up 24.07% to $66.60 on Friday after Medtronic said it would buy the company for $3.9 billion or $71 per share, a 32 per cent premium over Thursday's closing price. Medtronic wants to expand its growing spinal treatment business. The transaction should close in the first quarter of 2008. Shares in Medtronic also rose on the news.
Sepracor didn't fair so well on the Nasdaq. Shares plummeted 28.67% to $27.29 after the drug company said its second-quarter earnings fell by $11 million dollars. Sepracor also cut its outlook as it struggles against generic competition to its asthma drug. Sepracor's shares have fallen 54 per cent since the beginning of the year, and analysts say there is nothing on the horizon that is likely to change its downward spiral.
Meanwhile, shares in Intel were down 1.92% to $23.54 after the chipmaker was accused by the European Commission of engaging in anticompetitive practices against rival AMD. Apparently Intel slashed prices below cost and gave huge rebates in an illegal attempt to drive its smaller competitor out of the market. Meanwhile, Intel's general counsel said the company had followed the law and that the Commission made mistakes in its charge sheet. The Commission can fine Intel up to 10 per cent of annual turnover if unsatisfied with the company's formal response, which is due in October.
And you've probably seen them on a pair of feet near you, if not your own, so it may come as no surprise that Crocs shares jumped 9.55% to $55.42 after the shoemaker reported second-quarter earnings nearly tripled from a year ago. The company reported net income of $48.5 million on Friday based on robust sales of its unique looking shoes in the US and abroad. Crocs raised its forecast for 2007 to earnings of $250 million dollars.
Turning to the best and worst performers in the Nasdaq Top 100. The top gainer was Wynn Resorts which was up 2.75% to $100.35. Fastenal and Celegene also topped the list of winners on the Nasdaq Friday.
At the other end of the scale Sepracor performed poorly as mentioned earlier. Ryanair Holdings and Verisign rounding out the bottom three.
