Stocks lost ground this week, despite a number of encouraging economic trends, including improving consumer spending and sentiment data. Bobbi Rebell reports.
A split decision on stocks. The Dow lifted by better-than-expected consumer sentiment. But a slide in chip stocks dragged the Nasdaq down. For the week also pressure downward. All the major indexes closing with losses. Also driving the Dow's climb: Nike. About a dozen brokerages hiked their price target on the athletic wear maker the day after it blew past analysts estimates with its 24 percent profit jump. Finish Line also sprinted past Wall Street's targets with its big profit increase. Shares of the sports apparel retailer rose. Those results reflected the optimism of shoppers. Consumer sentiment rose sharply higher this month, the most upbeat since January. Mizuho's chief economist Steven Ricchiuto: SOUNDBITE: STEVEN RICCHIUTO, CHIEF ECONOMIST, MIZUHO SECURITIES (ENGLISH) SAYING: "We did have a nice bounce up in spending in the month of May. And it really was interesting, because a lot of it was retail, but a lot of it was non-durable spending as well." Celladon's stock nose-dived. The drug developer said, it may be forced to liquidate. It's looking for a buyer or a merger, and it's suspending development of its gene therapy for heart failure. A number of brokerages cut their price target on Micron Technology as shares plummeted. It was the day's biggest loser on the Nasdaq. The chipmaker foresees a further decline in PC chip prices and issued a weak revenue forecast. That outlook also hurt shares of Intel, Broadcom and other chipmakers. The minimalist modernism of Restoration Hardware's new furnishing line pushed BB&T to upgrade its shares to "buy" from "hold." The brokerage says the shares could rise 25 percent because the new line should pull in new customers. The positive sentiment around a possible Greek debt deal also sent European shares higher.