STOCKS HAVE A HUGE WEEK: Here's what you need to know

Stocks rallied in trading on Friday, and the S&P 500 recorded its best week in six weeks. The Dow climbed back into positive year-to-date territory, lifted by a rally in Nike shares after the company announced a stock split and buybacks.

First, the scoreboard:

  • Dow: 17,806.37, +73.62, (0.42%)
  • S&P 500: 2,087.08, +5.84, (0.28%)
  • Nasdaq: 5,098.65, +25.01, (0.49%)

And now, Friday’s top stories:

  1. Chipotle shares got slammed after the Center for Disease Control and Prevention said an E.coli outbreak linked to the fast-food chain had spread to six states. Shares fell by as much as 9%, leading declines on the S&P 500 in late-afternoon trading. The CDC said 45 people were infected with a strain of the bacteria from “a common meal item in six states, up from three previously reported. They are Oregon, California, Minnesota, Ohio, New York, and Washington. In a statement, Chipotle said it was likely the source emerged during late October, adding that it was taking aggressive steps to ensure its food was safe.
  2. Tesla announced it was recalling the 90,000 Model S sedans it sold worldwide because of a malfunction in front seat belts. Shares dropped nearly 3% on the news. Although there’s been no accident linked to the issue, Tesla said it was recalling the cars out of an “abundance of caution.” On October 20, Tesla shares fell 11% after Consumer Reports pulled its recommendation of the sedan for other reasons.
  3. Abercrombie & Fitch shares jumped 23% after the retailer reported stronger-than-expected third-quarter earnings. As part of its ongoing turnaround strategy, the company sold fewer discounted items, and this helped boost its profits. It posted adjusted earnings per share of 48 cents (22 cents expected), on revenues of $US879 million ($US863 million forecast).
  4. The US oil rig count fell by 10 to 564 this week, the lowest level in five years. The total rig count also fell by 10, to 757, as the gas rig tally stayed unchanged at 193.
  5. Airbnb raised more than $US100 million in a new funding round, at a valuation of $US25.5 billion, according to the Wall Street Journal. The home-sharing site’s valuation was unchanged from last summer’s fundraising round. The Journal reported that the company’s bookings doubled from a year ago to $US2.2 billion, and it generated $US340 million in third-quarter revenues. This was in line with the projection it reportedly made last year. The company expects to earn $US850 million revenues with an operating loss of about $US150 million, as it expands across the world and battles regulators.

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