MarketView for May 9

Summary

The Dow Jones Industrial Average ended the day on Friday at a record high due in no small part to a rise in the shares of IBM, while a rebound in high-growth momentum stocks helped the broader market. IBM ended the day up 0.6 percent at $190.08.

Consumer discretionary shares also lifted the market, with the stock of Gap up 3.3 percent at $40.52. The company reported rising April sales and gave an earnings projection that exceeded Street expectations.

Apple was the largest drag on S&P 500 and the Nasdaq 100 . on news that it is close to paying a record $3.2 billion for Beats Electronics, an expensive foray into music streaming and headphone gear. Questions are being raised as to why Beats and is it worth the price. Beats was valued at $1 billion during its last funding round last September. Apple ended the day down 0.4 percent to close at $585.54.

Momentum names advanced, with shares of Gilead Sciences up 1.3 percent at $79.76. Netflix rose 2.1 percent to end the day at $328.55 after the company increased the price of its most popular video streaming plan by $1 a month.

The gains came after a volatile week for momentum stocks. The S&P 500 has alternated between gains and losses each day this week, and the Nasdaq has dropped for three straight sessions - its longest losing streak since early April - as Internet-related stocks came under pressure.

For the week, the Dow was up 0.4 percent, while the S&P 500 fell 0.1 percent and the Nasdaq was down 1.3 percent. This marked the Nasdaq's largest weekly percentage decline in a month.

The Russell 2000 gained 0.9 percent. Early in the session, it flirted with correction territory, defined as a 10 percent drop from a recent peak. At its session low, the Russell touched 1,091.50, nearly 10 percent below its all-time closing high of 1,208.65 reached on March 4.

Healthcare stocks rose, with shares of Merck up 0.7 percent at $55.21 a day after health regulators approved a blood-clot prevention drug developed by Merck for use by patients who have had a heart attack or who suffer from blockages in the arteries of the legs.

Among the day's big decliners, Rocket Fuel fell 21.5 percent to $21.83 after the technology provider for Web-based video advertising forecast current-quarter revenue far below expectations, prompting downgrades from Goldman Sachs and BMO Capital.

Trading was mostly lackluster, with approximately 5.7 billion shares changing hands on the major equity exchanges, a number that was below the 6.2 billion month-to-date average number of shares, according to data from BATS Global Markets.