The Washington Post

S&P, Dow record seventh week of gains

STOCKS
S&P, Dow record 7th week of gains

U.S. stocks rose Friday, with the Standard & Poor’s 500-stock index closing above 1800 for the first time and health-care names leading the way higher.

The Dow Jones industrial average ended at another record high above 16,000.

Both the Dow and the S&P recorded their seventh straight week of gains in what has been a strong year for stocks. The advance comes just ahead of December, which since 1950 has been the best month for both the Dow and the S&P.

“We’re advising our clients to take this ride until the end of the year,” said Drew Nordlicht, managing director and partner at Hightower San Diego.

The Nasdaq biotechnology index jumped 3 percent, driven by a surge in Biogen Idec.

The 10 tallest completed skyscrapers in the world.

Shares of Biogen shot up 13.2 percent on heavy volume to $285.62 after the company won 10 years of exclusivity protection for its multiple sclerosis drug, Tecfidera, from regulators in Europe.

“Health care is the place to be. It’s a hot area. People want stocks in health care, industrials and consumer discretionary. That’s where tactical investors have been focused, and that’s where the money has been flowing,” said Michael Matousek, head trader at U.S. Global Investors in San Antonio.

European regulators also recommended approval of a new drug for hepatitis C from Gilead Sciences, which pushed its shares up 3.7 percent to $74.27.

The S&P 500 health-care sector index has gained 37.5 percent in 2013, making it the S&P 500’s best-performing sector this year.

— Reuters

AUTOMOTIVE
Hong Kong tycoon buys carmaker’s loan

A company owned by Hong Kong tycoon Richard Li has bought the Energy Department’s outstanding $170 million loan to the defunct electric carmaker Fisker Automotive for about $25 million and will try to revive production of Fisker’s luxury Karma sedan.

Fisker, which declared bankruptcy Friday, will end up costing U.S. taxpayers $139 million. The Energy Department said that the loan losses amount to less than 2 percent of the Advanced Technology Vehicle Manufacturing loan program.

Li is the second son of billionaire Li Kashing, a major property and retail magnate in Hong Kong and mainland China. His company, Hybrid Technology, issued a statement saying that it would build new hybrid electric cars based on Fisker’s sports sedan. The Energy Department said that Li’s company had “committed” to manufacture the new Karma in the United States and keep engineering and design facilities in California.

Fisker sold only about 2,000 of its sedans, which retailed for about $100,000 each. The company, which laid off most of its remaining employees this year, had raised about $1.2 billion from investors.

Although Fisker won approval for a $529 million federal loan in 2009, the Energy Department halted disbursements at $192 million in June 2011 after the company failed to meet loan conditions. The loan sale Friday to Hybrid Technology brings to $53 million the total amount the department has recouped.

— Steven Mufson

Also in Business

— From news services

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