MARKET SNAPSHOT: U.S. Stocks Rally, Limit Weekly Losses

By Anora Mahmudova and Sara Sjolin, MarketWatch

Manufacturing activity flat in April; consumer confidence ticks up

U.S. stocks ended the week on a high note, with the main indexes advancing more than 1% on Friday. But the main benchmarks still posted modest losses over the week.

The S&P 500 (SPX) closed 22.78 points, or 1.1%, higher at 2,108.29, but finished the week 0.4% lower. The Dow Jones Industrial Average (DJI) jumped 183.54 points, or 1%, to 18,024.06, but posted a 0.3% loss over the week.

The Nasdaq Composite (RIXF) gained 63.97 points, or 1.3%, to 5,005.39, but ended the week with a 1.7% loss, mostly due to a large selloff in biotechnology industry.

On Friday, investors digested a raft of economic reports, earnings and monthly car-sales figures, but the rally was mostly attributed to stocks being oversold during the week.

Thursday's rout in particular was driven by losses in technology and biotech stocks. While this week brought more uncertainty over the timing of the first Federal Reserve rate hike and a weaker-than-expected reading on U.S. gross domestic product in the first quarter.

Readings on manufacturing activity came in below expectations, but the reaction to data was muted. However, consumer confidence indicators ticked higher. Investors are also assessing monthly car sales.

John Manley, chief equity strategist at Wells Fargo Advantage Funds, said investors should not read too much into Friday's bounce as it's likely due to stocks being oversold during the week.

"When the GDP number came in and the Federal Reserve issued a statement after its meeting, it was not clear if investors were worried that the rates are going up or because the economy is slowing down," Manley said.

Friday's data: The second and final reading of U.S. manufacturing conditions in April was cut to 54.1 from a preliminary 54.2, data provider Markit said Friday.

U.S. manufacturers grew slightly in April as new orders rose, but they also scaled back employment to the lowest level since fall 2009, according to Institute for Supply Management.

Meanwhile, consumer sentiment rose to a final April reading of 95.9, up from 93 in March and matching the preliminary estimate.

Outlays for U.S. construction projects fell 0.6% in March to a seasonally adjusted annual rate of $967 billion.

Separately, car sales in April rose estimated 5.4% to a seasonally adjusted annual rate of 16.5 million, according to preliminary figures from Automotive News.

Earnings:Chevron (CVX) posted smaller-than-expected drops in its quarterly profit and revenue. Shares fell 1.8%.

CVS Health(CVS) reported adjusted earnings above FactSet estimates. Shares rose 1.2%.

After the closing bell, Warren Buffett's Berkshire Hathaway Inc.(BRK/A) (BRKA) is slated to report, a day ahead of the company's annual shareholder meeting in Omaha. Read: 50 best things Warren Buffett told investors over past 50 years (http://www.marketwatch.com/story/a-half-centurys-worth-of-wisdom-from-warren-buffett-2015-02-27)

Movers and shakers: Shares of LinkedIn Corp. (LNKD) slumped 19%, after the professional networking company late Thursday issued a profit forecast well below Wall Street estimates (http://www.marketwatch.com/story/new-york-times-exxon-aig-linkedin-fireeye-earnings-in-focus-2015-04-30).

For more on today's notable movers read the Movers & Shakers column (http://www.marketwatch.com/story/chevron-cvs-moodys-berkshire-hathaway-earnings-in-focus-2015-05-01).

Other markets: Most markets were closed in Asia and Europe for their Labor Day holiday. Among few open bourses in Asia, Japan's Nikkei 225 index ended slightly higher.

Oil futures () fell 0.8% to settle at $59.15 a barrel, and gained 3.5% over the week. Oil prices jumped 25% in April. Gold futures (http://www.marketwatch.com/story/gold-extends-drop-on-more-upbeat-economic-outlook-2015-05-01)fell 0.7% to settle at $1,174.50 and were nearly unchanged over the past week.

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