Summary: Stocks finish week off strong; Treasury yields fall; McDonalds sales warning; U.S. productivity rebounds. Bobbi Rebell reports.
U.S. stocks finished out the week on a high note- rallying after Russia said its military exercises near Ukraine's border are over- overshadowing concerns about U.S. air strikes in Iraq. That news also turned stocks positive for the week. Utilities were the best performers on the S&P 500. Their high-dividend yield - attractive to investors after the U.S. 10-year Treasury note yield fell to a 14-month low. Shares of Both Nvidia and Gap rose after strong earnings Thursday. The dollar hitting roughly two- week lows versus the Swiss franc - a sign investors are looking for safety. McDonald's is warning its sales are at risk this year after a food scare forced it to take some popular items- think Big Macs and McWings - off the menu in China. Technomic's David Henkes: SOUNDBITE: DAVID HENKES, VICE PRESIDENT, TECHNOMIC (ENGLISH) SAYING: "McDonald's clearly challenged from a number of fronts. Its consumers aren't spending money and traffic is down. Competitively its getting its lunch eaten literally and figuratively by competitors." Tekmira stock surged- the U.S. Food and Drug Administration modified the status of its Ebola treatment- potentially allowing it to be used on infected humans. U.S. productivity rebounded in the second quarter- rising at a 2.5 percent pace. That's putting a lid on wage pressures- and ultimately giving the Federal Reserve more room to keep interest rates low for a while. Argentina back in court and in more trouble. A U.S. judge in the country's long-running debt battle threatened a contempt of court order on Friday- if the country does not stop issuing false statements- specifically saying it has made the required debt payments. In Europe shares fell for the seventh time in eight sessions.