NEW YORK (
) -- The
Dow Jones Industrial Average
ended Friday's session more than 100 points higher on the same day that it dipped below 10,000 as markets sought stabilization after Germany acceptanced its portion of the eurozone rescue package.
Stocks threatened to give up gains as volatility took hold in the last hour of trading, but a late rally pushed major U.S. indices up near session highs. The Dow Jones Industrial Average added 125 points, or 1.3%, to close at 10,193. The
gained 16 points, or 1.5%, to 1088, and the
increased by 25 points, or 1.1%, to 2229.
>>Bull or Bear? Vote in Our Poll
Although indices finished Friday's session ahead, they ended lower on the week: The Dow lost 4%, the S&P shed 4.2% and the Nasdaq was off by 5%.
an extensive overhaul of financial markets regulation late Thursday by a vote of 59 to 39. The Senate bill, which includes an amendment that seeks to limit banks' risks by forcing bank holding companies to spin off profitable derivatives trading operations, will now go to a conference committee for reconciliation with the House of Representatives' measure. The proposal also imposes new regulations on complex securities, makes it easier to liquidate big, failing firms, and creates a consumer protection agency.
German lawmakers approved the country's portion of the nearly $1 trillion eurozone rescue package.
UBS economist Larry Hatheway blames European regulators for the insecurity that has been destabilizing global markets.
Sports Boosting Media Stocks (Forbes)
"It is the inability of European politics to address these sources of insolvency in a pre-emptive manner that has compounded the uncertainty that now plagues markets. The timing and nature of the 'end-game' remain in question," Hatheway said. "Matters were made worse by Germany's unilateral decision to ban certain forms of 'short-selling.' The move underscored divisions within the eurozone, but also reinforced the perception that politicians will reach for cosmetic and politically-motivated gestures, rather than come up with genuine solutions."
Addressing fears that steep losses could indicate something deeper, Hatheway said recent weakness still feels like a correction but he warned that it could have further to run.
"We recommend a cautious stance in global asset allocation. We prefer non-cyclical commodities, defensive stocks and U.S. corporate credit. Relative to our economic outlook, 'safe-haven' government bonds appear significantly overvalued -- we recommend underweight allocations," he said.
Overseas, Hong Kong's Hang Seng was closed for a holiday, and Japan's Nikkei dropped 2.5%. The FTSE in London dipped 0.2%, and the DAX in Frankfurt lost 0.7%.
Both Germany's upper and lower houses of parliament approved the country's portion of the €750 billion ($939.5 billion) eurozone rescue package: €123 billion and €147.6 billion in loan guarantees.
German Chancellor Angela Merkel
There are no economic releases scheduled for Friday's session.
The Treasury Department told Congress that the
projected cost of the Troubled Asset Relief Program decreased since TARP repayments have been greater than originally expected, with roughly $190 billion already repaid. Additionally, values of major investments -- such as
shares -- have strengthened. Costs fell by $11.4 billion, to $105.4 billion since the release of the Obama administration's fiscal year 2011 budget in early February.
Financial and basic materials sectors saw the strongest gains during Friday's session.
Bank of America
were the Dow's best performers.
New York Stock Exchange
Global Geophysical Services
were the best performing stocks and
, Bank of America and
were the most actively traded.
topped analysts' estimates with adjusted earnings of 30 cents a share late Thursday.
gained 8.3% after the company said several new products would likely result in better-than-expected second-quarter results.
got approval from the Federal Trade Commission to acquire mobile advertising company AdMob.
shares rose 3.7% on the company's third-quarter earnings beat and increased full-year outlook.
is buying a 40% stake in an offshore oil field in Brazil's Campos basin from
for $3.07 billion in cash.
plans to invest another $2.5 billion in China over the next three years, which comes in addition to the $1 billion the beverage company invested in the country in 2008.
Mitsubishi Heavy Industries
filed an antitrust lawsuit against
, alleging that the company sought to drive it out of the wind turbine market, according to a
Commodities and the Dollar
Crude oil for July delivery lost 76 cents, or 1.1%, to settle at $70.04 a barrel.
Elsewhere in commodity markets, the June
gold contract shed $12.50, to settle at $1,176.10 an ounce.
The dollar was trading lower against a basket of currencies, with the
dollar index down by 0.7%.
The benchmark 10-year Treasury rose 5/32, lowering the yield to 3.200%.
The two-year note fell 2/32, lifting the yield to 0.747%. The 30-year bond increased 12/32, diluting the yield to 4.072%.
--Written by Melinda Peer in New York