(By Balachander) U.S. stocks closed in green, rebounding from sharp losses yesterday, as investors discounted Moody's credit ratings downgrade of 15 of the world's biggest banks.
S&P 500 Index rose 0.74 percent to finish at 1,335.26. The Dow Jones Industrial Average gained 0.56 percent to end at 12,644.41. The Nasdaq Composite Index added 1.17 percent to close at 2,892.42.
In a long-awaited move, ratings agency Moody's cut credit ratings of several banks by one to three notches to reflect their risk of losses inherent in capital-markets business.
There are no major U.S. economic data scheduled for release on Friday.
On the European front, German business sentiment deteriorated more than forecast in June, to the lowest in over two years, a survey showed.
Hot Stocks Of The Day: JPM, MS, BAC, ARNA, R, FSLR, FB, CCL, AMAG
In corporate news, J.P. Morgan Chase & Co. (NYSE: JPM) advanced 1.66 percent. Morgan Stanley (NYSE:MS) and Bank of America Corp. (NYSE:BAC) rose 1.29 percent and 1.53 percent, respectively.
Arena Pharmaceuticals Inc. (NASDAQ:ARNA) retreated 15.41 percent. The U.S. Food and Drug Administration is scheduled to rule on the San Diego, California-based company's experimental weight loss drug lorcaserin by June 27.
Ryder Systems Inc. (NYSE: R) slumped 13.03 percent after the Florida-based transportation company slashed its earnings forecast for the second quarter, citing a fall in demand for its commercial rental services.
First Solar Inc. (NASDAQ: FSLR) rallied 9.22 percent after the Tempe, Arizona-based company received approval to start installation of solar modules at a 230-megawatt Antelope Valley project in the Los Angeles County.
Facebook Inc. (NASDAQ:FB) rose 3.80 percent after brokerage Nomura initiated coverage of shares of the social networking company with a "Buy" rating.
AMAG Pharmaceuticals Inc. (NASDAQ:AMAG) added 4.22 percent after Lexington, Massachusetts-based company said ferumoxytol, its treatment for iron deficiency anemia (IDA) in adult patients with chronic kidney disease (CKD), has received marketing authorization from the European Commission.
Carnival Corp. (NYSE:CCL) lost 2.66 percent after the Florida-based cruise and vacation company reported a plunge in earnings for the second quarter, hit by losses on fuel derivatives and drop in revenue yields.
Darden Restaurants Inc. (NYSE:DRI) posted quarterly earnings in line with Wall Street projections amid a 1.9 percent drop in same-restaurant sales at its three casual dining brands. Shares were off 0.69 percent.
Arch Coal Inc. (NYSE:ACI) fell 1.13 percent after the St. Louis, Missouri-based coal producer announced plans to reduce production, idle several operations and slash roughly 750 jobs due to the "unprecedented downturn in demand for coal-based electricity."
European markets ended in red, with Germany's DAX down 1.26 percent to close at 6,263.25. Data from Munich-based Ifo institute showed Germany's business confidence index declined to 105.3 from 106.9 a month ago, while economists expected the index to drop to 105.6. France's CAC40 fell 0.75 percent to finish at 3,090.90. U.K.'s FTSE 100 lost 0.95 percent to end at 5,513.69.
Asian markets retreated tracking global cues, Hong Kong's Hang Seng tumbled 1.40 percent to close at 18,995.13. Japan's Nikkei 225 shed 0.29 percent to end at 8,798.35. India's BSE Sensex finished at 16,972.51, down 0.35 percent. Chinese market were closed for a holiday.
Commodity & Currency Scan:
Crude oil futures rose 2.35 percent to $80.040 per barrel and natural gas futures added 1.67 percent to $2.625 per million metric British thermal units. Gold futures gained 0.29 percent to $1,570.01 per ounce while silver futures shed 0.26 percent to $26.830 per ounce.
In the currency market, the euro gained 0.18 percent against the U.S. dollar to 1.2562. The British pound dipped 0.05 percent against the greenback to 1.5584, while the dollar rose 0.17 percent against the Japanese yen to 80.4200.