Market regains ground after Thursday's big loss

The U.S. stock market headed higher Friday as investors welcomed good news on the U.S. economy at the end of a turbulent week of trading. Nike jumped after turning in higher profits, and Janus Capital Group soared following news that it had hired star bond fund manager Bill Gross.

Keeping score: The Dow Jones industrial average was up 56 points, or 0.3 percent, to 17,001 as of 11:52 p.m. Eastern. The Standard & Poor’s 500 index rose three points, or 0.1 percent, to 1,968 and the Nasdaq composite climbed 13 points, or 0.3 percent, to 4,479.

The S&P 500, the benchmark for most mutual funds, is on track to lose 2 percent this week. The biggest drop came Thursday, the worst day for the stock market since July 31.

A view: Steep drops are often followed by slight daily gains as investors hunt for beaten-down stocks. “After yesterday, it’s only normal to get a little bit back because people tend to buy on the dips,” said Jason Pride, director of investment strategy at Glenmede Trust.

Pride said he expects the market to resume its climb as the economy improves. “I think we'll continue to grind higher because the economic momentum is still there,” he said. “Maybe the market gets overvalued. So, sometimes a little breather is helpful.”

Surprise: After a dismal winter, the U.S. economy expanded at an annual rate of 4.6 percent in the spring, the fastest pace in more than two years, the government reported Friday. Some economists expect the momentum to carry through the rest of the year.

Swoosh: Late Thursday, Nike said its quarterly net income surged 23 percent thanks to solid sales and lower taxes. Both its earnings and revenue beat Wall Street’s estimates. Nike’s stock gained $8.56, or 11 percent, to $88.23.

Moving on: Famed bond-fund manager Bill Gross, a founder of bond giant PIMCO, is leaving to join Janus Capital. Janus said Gross, who managed the world’s largest bond fund at PIMCO, starts work next Monday. Janus soared $3.49, or 31 percent, to $14.56.

Europe: Major markets in Europe were mixed. Germany’s DAX slipped 0.2 percent and France’s CAC 40 gained 1 percent. Britain’s FTSE 100 index picked up 0.2 percent.

Asia’s day: Japan’s benchmark Nikkei 225 led most Asian benchmarks lower, falling 0.9 percent. South Korea’s Kospi lost 0.1 percent, while Hong Kong’s Hang Seng shed 0.4 percent. The Shanghai Composite Index edged up 0.1 percent.

Oil: Benchmark crude oil for November delivery rose 49 cents to $93.02 on the New York Mercantile exchange.

This story was originally published September 26, 2014 at 11:20 AM with the headline "Market regains ground after Thursday's big loss."