GE's divestment and buyback plans generated a broad rally which helped U.S. stocks close out a strong week. Shartia Brantley reports.
General Electric's buyback plans got Wall Street in a buying mode. The Dow, S&P 500 and the Nasdaq closed higher. The major U.S. market indices ended the week on a strong note. GE is selling the bulk of its real estate assets for $26.5 billion as part of its move to drastically shrink its finance unit, GE Capital. It'll also buy back up to $50 billion of shares. GE's stock rocketed higher, as did one of the buyer of its assets, Blackstone Group. Also up: Netflix. Citigroup upgraded the stock of the streaming video giant to "buy" from "neutral" and significantly boosted its price target. It says Netflix improved its content lineup, and it's a good time to buy the stock given its recent pullback. Shares of Ruby Tuesday rallied the day after the restaurant chain operator reported a loss that was smaller than expected. Heading south: shares of Citrix Systems. The cloud-computing software maker warned of weaker revenue due to the strong dollar, among other things. Gap also lost ground even though two brokerages raised their price targets. Its comparable store sales rose more than expected last month, but sales at its namesake stores fell more than expected. In economic news, import prices dropped last month, a sign that inflation remains muted. In Europe, a weaker euro boosted stocks to their highest levels in fifteen years.