Early Rally Fizzles, Biotech Stocks Hammered -- U.S. Commentary

(RTTNews) - U.S. stocks were mixed Friday, even after Federal Reserve Chair Janet Yellen cleared up some of the uncertainty surrounding the outlook for interest rates.

Strong early gains evaporated amid word that John Boehner has decided to step down from his role as Speaker of the House.

The move could alter the political landscape in Washington as lawmakers stare down a possible government shut down.

The Dow Jones Industrial Average closed 113.35 points, or 0.7%, higher at 16,314.67. However, the blue-chip index declined 0.4% over the week.

The S&P 500 was down less than a point at 1,931.34, for a 1.4% weekly loss.

The Nasdaq Composite lost 47.98 points, or 1%, at 4,686.50 and posted a 2.9% weekly loss. Biotech shares were hammered, as reflected in a 5% drop in the iShares Nasdaq Biotechnology ETF (IBB).

Hillary Clinton earlier this week came out against a 5,000% overnight price hike for an AIDS drug, putting biotechs in a negative light.

Big movers included Nike (NKE), the new top performer for the year among blue-chip stocks. Shares jumped 9% to a record closing high.

Apple, Inc. (AAPL) is set to blow past its record for first-weekend sales for the latest iPhones series, the company says. Shares were down slightly.

Meanwhile, Volkswagen AG (VKW.L,VLKAF.PK,VOW.BE) on Friday said it has appointed Porsche chief, Matthias Mueller, as chief executive officer of the group with immediate effect.

Federal Reserve Chair Janet Yellen gave investors a clear signal with remarks she delivered after the close on Thursday. Yellen stated that the Fed remains on track to raise rates this year, saying the more "prudent strategy is to begin tightening in a timely fashion and at a gradual pace."

Turning to Washington, House Speaker John Boehner announced that he will resign his House set at the end of October. The move comes as lawmakers struggle with the president to avoid a government shut down.

In economic news, growth in the U.S. economy was stronger in the second quarter than people had previously thought. Meanwhile, new data showed that U.S. consumer sentiment has declined in September.

Updated government data showed that the U.S. Gross Domestic Product expanded at a revised rate of 3.9 percent in the second quarter. This was revised up from the 3.7 percent growth that was reported last month.

The University of Michigan's final September reading on the overall index on consumer sentiment came in at 87.2, down from 91.9 in August.