US close: Stocks fall sharply after disappointing GDP

US stocks fell sharply on Friday, after government data showed economy slowed down more than anticipated in the fourth quarter, while oil prices staged an unexpected revival.

The Dow Jones Industrial closed 251.90 points down at 17,164.95, while the S&P 500 and the Nasdaq ended the last session of the week losing 1.30% and 1.03% respectively.

The US economy slowed down to a 2.6% growth rate in the fourth quarter, more than analysts had expected.

Gross domestic product (GDP), the broadest measure of goods and services produced across the economy, grew at a 2.6% annual rate in the fourth quarter, the Commerce Department said.

According to figures released on Friday, the US economy grew 5% in the third quarter and 4.6% in the second quarter after declining in the first three months of the year, while economists had expected GDP to grow by a seasonally adjusted 3.2%.

“There are signs, however, that economic growth could start to pick up again in coming months," said Markit chief economist Chris Williamson.

"Consumer confidence rose to its highest since August 2007 in January, according to the conference board, most likely buoyed by the boost to spending power from lower oil costs and the recent slide in inflation.

"The announcement of full-scale quantitative easing by the European Central Bank should also help boost business and consumer confidence in Europe, which remains a major export market for the US."

Oil prices rebounded, with West Texas Intermediate rising over 6.2% to settle at $47.50 a barrel, while Brent rose 5.7% to $52.11 a barrel.

In corporate news, Google rose over 4.74%% after announcing late on Thursday that its profits rose almost 30%, even though it failed to meet revenue forecasts.

"The strong US dollar was a major concern heading into the fourth quarter earnings season and that was precisely the reason given by Google for missing earnings estimates overnight and is contributing towards a lower open on Friday and could lead to a loss for major indices in January," said CMC Markets analyst Jasper Lawler.

Amazon surged 13.71% after announcing late on Thursday that sales surged 15% and profits fell less than expected.

Biogen Idec rose 10.17% after the firm said late Thursday its fourth-quarter profit nearly doubled, as its portfolio of multiple sclerosis treatments helped the group posting a 34% growth in revenue, while Intercept Pharmaceuticals surged 17.77% after the drug maker said late Thursday its investigational treatment for a liver disease obtained breakthrough-therapy status.

Visa Inc. rose 2.79% after reporting first-quarter earnings of $2.53 a share after the closing bell on Thursday, ahead of the $2.49 a share forecast by analysts, while sector peer MasterCard Inc. gained 0.80% after reporting a rise in fourth-quarter revenue that was better than expected.

Shake Shack jumped 118.57% on debut, after pricing its initial public offering at $21 a share on Thursday.

Gold futures rose 2.27% to $1,283.10, while the dollar rose marginally against the pound and the euro but lost almost 0.7% against the yen.

S&P 500 - Risers
Amazon.Com Inc. (AMZN) $354.37 +13.66%
Biogen Idec Inc. (BIIB) $388.83 +10.07%
Nabors Industries Ltd. (NBR) $11.51 +8.48%
Cameron International Corp. (CAM) $44.78 +6.04%
United States Steel Corp. (X) $24.44 +5.94%
Denbury Resources Inc. (DNR) $6.90 +5.83%
Google Inc. (GOOGL) $538.76 +4.97%
Google Inc. Class C (GOOG) $535.11 +4.79%
Newfield Exploration Co (NFX) $29.78 +4.45%
Rowan Companies plc (RDC) $21.12 +4.14%

S&P 500 - Fallers
PACCAR Inc. (PCAR) $60.11 -6.15%
Delta Airlines Inc. (DAL) $47.31 -5.78%
PulteGroup Inc. (PHM) $20.59 -5.64%
Leggett & Platt Inc. (LEG) $42.63 -5.41%
Viacom Inc. Class B (VIAB) $64.42 -4.55%
Chubb Corp. (CB) $97.90 -4.51%
Coach Inc. (COH) $37.19 -4.49%
Harley-Davidson Inc. (HOG) $61.70 -4.49%
AbbVie Inc (ABBV) $60.35 -4.39%
Lam Research Corp. (LRCX) $76.44 -4.29%

Dow Jones I.A - Risers
Visa Inc. (V) $254.91 +2.79%

Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $40.40 -3.83%
Intel Corp. (INTC) $33.04 -3.42%
Wal-Mart Stores Inc. (WMT) $84.98 -3.12%
Cisco Systems Inc. (CSCO) $26.37 -3.12%
Home Depot Inc. (HD) $104.42 -2.97%
Merck & Co. Inc. (MRK) $60.28 -2.92%
Unitedhealth Group Inc. (UNH) $106.25 -2.87%
Nike Inc. (NKE) $92.25 -2.76%
Walt Disney Co. (DIS) $90.96 -2.42%
JP Morgan Chase & Co. (JPM) $54.38 -2.32%

Nasdaq 100 - Risers
Amazon.Com Inc. (AMZN) $354.37 +13.66%
Biogen Idec Inc. (BIIB) $388.83 +10.07%
Google Inc. (GOOGL) $538.76 +4.97%
Vimpelcom Ltd Ads (VIP) $3.60 +4.96%
Google Inc. Class C (GOOG) $535.11 +4.79%
Broadcom Corp. (BRCM) $42.43 +2.71%
Costco Wholesale Corp. (COST) $142.99 +1.67%
Dollar Tree Inc (DLTR) $71.11 +1.33%
Activision Blizzard Inc. (ATVI) $20.90 +0.75%
Liberty Global plc Series A (LBTYA) $46.74 +0.71%

Nasdaq 100 - Fallers
PACCAR Inc. (PCAR) $60.11 -6.15%
Viacom Inc. Class B (VIAB) $64.42 -4.55%
Keurig Green Mountain Inc (GMCR) $122.56 -4.24%
Dish Network Corp. (DISH) $70.37 -4.23%
Seagate Technology Plc (STX) $56.44 -3.85%
Microsoft Corp. (MSFT) $40.40 -3.83%
Western Digital Corp. (WDC) $97.23 -3.79%
Vertex Pharmaceuticals Inc. (VRTX) $110.14 -3.50%
Intel Corp. (INTC) $33.04 -3.42%
Avago Technologies Ltd. (AVGO) $102.89 -3.42%