Manufacturing growth in China hit a 14-month high in December, according to the latest HSBC flash PMI report, with gains in sectors including new orders and employment highlighting a rosier outlook for the economy in months to come.
President Barack Obama and Republican House Speaker John Boehner held talks at the White House late Thursday night to discuss how to resolve the looming economic problems.
Best Buy reversed gains to trade sharply lower after the consumer electronic retailer's board and founder extended the deadline for Richard Schulze to make a bid for the company. The new window for a potential bid will now be in February. The prior deadline had been a bid by December 16.
Among earnings, Adobe Systems jumped after the computer software company topped earnings expectations. Meanwhile, Verifone slumped after the electronic payment company posted revenue below forecasts and handed in a weaker-than-expected current-quarter quarterly guidance.
Another Facebook lock-up lifts, with another 156 million shares of the social-networking giant becoming eligible for sale.
Apple slid after UBS cut its target price on the tech giant to $700 from $780, citing signs that the iPhone's production rate is declining and adding that iPhone 5 sales in China may not do as well as the previous model. The iPhone 5 debuted in China Friday.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
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