Stocks Bounce Back

Stocks rebounded Friday after a two-day sell-off on fears of slowing growth and rising inflation.

Helping brighten the mood was a more market-friendly view on inflation from Cleveland Fed president Sandra Pianalto, and falling oil prices also helped traders’ moods.

Even HP shares managed a solid gain on the day despite a widening leak scandal that threatened to claim the company’s chairman.

Amazon gained 2.6% after announcing a video download service ahead of a similar announcement expected from Apple next week.

Micron surged 5.5% on a Jefferies buy rating on growing product diversification away from DRAM.

Broadcom lost 1.3% on growing stock option liabilities.

Gateway added 1.6% on a new CEO.

Volt and Logility fell on their results.

The Nasdaq gained 10 to 2165, the S&P 500 added 5 to 1299, and the Dow rose 60 to 11,392. Volume declined to 2.05 billion shares on the NYSE, and 1.5 billion on the Nasdaq. Advancers led 19-12 on the NYSE, and 16-13 on the Nasdaq. Upside volume was 60% on the NYSE, and 62% on the Nasdaq. New highs-new lows were 69-46 on the NYSE, and 59-49 on the Nasdaq.