Wall St bounces back with Apple; biotechs a boost

By Caroline Valetkevitch

(Reuters) - U.S. stocks climbed late on Thursday afternoon, bouncing back with Apple shares from losses the day before, but nervousness was high ahead of a much-anticipated Federal Reserve meeting next week.

Apple's shares rose 2.5 percent to $112.91, rebounding from losses the day before when the iPhone and iPad maker unveiled new offerings.

Biotech shares also boosted the market, with Gilead up 3.9 percent at $107.83, giving the second-biggest boost to the S&P 500 and Nasdaq after Apple. The Nasdaq biotechnology index <.NBI> was up 2.2 percent.

The day's gains follow 1-percent declines on Wednesday and weeks of volatility largely tied to worries about a slowdown in Chinese growth and its impact on the global economy. Investors also have been nervous about next week's Fed meeting and whether the central bank will decide to raise interest rates.

 

"Volatility is here to stay for the rest of the fourth quarter because even if the Fed doesn't raise rates next week, it is signalling that there is weakness in the economy," said Mohannad Aama, managing director at Beam Capital Management in New York.

At 3:04 p.m, the Dow Jones industrial average <.DJI> rose 67.48 points, or 0.42 percent, to 16,321.05, the S&P 500 <.SPX> gained 8.62 points, or 0.44 percent, to 1,950.66 and the Nasdaq Composite <.IXIC> added 30.56 points, or 0.64 percent, to 4,787.08.

All 10 major S&P sectors were higher, led by the health care index <.SPXHC>, which was up 1.2 percent.

Influential fund manager David Tepper of Appaloosa Management told CNBC that corporate earnings may not rise as much as expected and he was not overly bullish on stocks next year.

Data released on Thursday showed the number of Americans filing new applications for unemployment benefits fell last week, the 27th straight week that claims remained below the 300,000 threshold, usually associated with a strengthening labour market.

Krispy Kreme Doughnuts fell 11.8 percent to $15.64, a day after the doughnut chain cut its 2016 profit forecast.

Lululemon Athletica was down 13.9 percent at $55.12. The yogawear retailer's gross margins continue to be under pressure as it spends more on product development and sourcing.

Advancing issues outnumbered declining ones on the NYSE by 1,607 to 1,401, for a 1.15-to-1 ratio; on the Nasdaq, 1,553 issues rose and 1,197 fell, for a 1.30-to-1 ratio favouring advancers.

The S&P 500 was posting 1 new 52-week high and 7 lows; the Nasdaq Composite was recording 24 new highs and 53 lows.

(Additional reporting by Tanya Agrawal; Editing by Don Sebastian)