IBD's Top 10 - Friday

Late Slide Deepens Correction

1 With no obvious cause, the main indexes dived in the last 20 minutes, ending at the week's lows. The S&P 500 tumbled 1.6%, the Dow, S&P 600 and NYSE composite fell 1.5% and the Nasdaq lost 1.4%. All took out Thur.'s lows. Volume eased from Thu.'s feverish pace. But few top-tier leaders suffered further damage and several rose. The 10-year yield fell to 4.75%. More on this page, B7

GDP Growth Rebounds To 3.4%

2 That was the best annualized gain in over a year and up from Q1's anemic 0.6% rise. Consumer spending growth was just 1.3%, the weakest since Q4 '05. But housing was less of a drag, business investment improved and net exports also helped. The report's core inflation index cooled to a 1.4% rate, a 4-year low. More on this page, A2

Credit Market Woes Continue

3 Cadbury Schweppes csg extended the sale of its U.S. drinks unit, citing credit market "volatility." Several big deals are struggling for financing. With hedge funds Blackstone bx and Fortress fig trading well below IPO prices, KKR reportedly may delay its offering. And there were rumors of another subprime hedge fund crisis. Citi sees big subprime losses for Freddie Mac and Fannie Mae.

Oil Soars To Near Record Close

4 Sept. U.S. crude shot up $2.07 to $77.02 a barrel, a penny below last year's record close. Oil prices had topped $77 on Thursday, but reversed lower as plunging U.S. stocks raised concerns about the health of the U.S. economy and energy demand. The GDP report eased those fears. Gasoline futures rose 1.2%; natural gas climbed 2.2%.

Key Dow Holders Ask For More

5 A key branch of Dow Jones DJ' controlling Bancroft clan reportedly plans to vote against Rupert Murdoch's News Corp.'s NWS $5 bil, or $60 a share, bid. The Denver branch, which owns a 9.1% voting stake, said super-voting Class B holders should get 10%-20% more. News Corp. reportedly said it has no intention of raising its bid. Dow shares, off nearly 13% intraday, closed up 2% to 54.70.

Medtronic To Acquire Kyphon

6 Medtronic will buy fellow medical device maker Kyphon KYPH for $3.9 bil, or $71 a share, in cash to expand its spinal products business. Medtronic MDT has been known for its heart defibrillators and pacemakers, but its spinal business has grown fast. Kyphon focuses on older patients who have spinal compression fractures and spinal stenosis. Kyphon shares rose 24% to 66.60. More on A8

Pakistan Mosque Blast Kills 13

7 The bombing killed mostly policemen and injured over 70 near Islamabad's Red Mosque as the gov't reopened it after a bloody army raid July 10 that killed nearly 100 Islamic militants. Hundreds of protesters clashed with security forces and occupied the mosque before being ousted. They denounced President Pervez Musharraf and declared loyalty to a pro-Taliban cleric.

Medco Lifted By Generic Drugs

8 The No. 1 U.S. pharmacy benefits manager said Q2 earnings rose 32% to 86 cents a share ex items, beating views by 8 cents. Revenue lifted 4% to $11.05 bil, missing expectations. Medco Health MHS credited its profit gains to higher-margin generic drugs. It raised its '07 ex items EPS outlook by a dime to $3.50 - $3.55. Shares rose 1% to 78.82.

Chevron Q2 Profit Soars 28%

9 The nation's No.2 oil company's Q2 profit surged to $2.52 a share. Analysts expected $2.30 ex items, so it wasn't clear how well Chevron CVX did. Sales rose 5% to $56.1 bil, way above views of $50.35 bil. Higher gasoline prices and higher refining margins helped. So did Chevron's sale of its holdings in power wholesaler Dynegy.

House Passes $284 Bil Farm Bill

10 Defying President Bush's veto threat, the Dem-controlled House OK'd by 231-191 a massive bill that would give billions in aid to farmers and impose new taxes on foreign firms with U.S. units. The bill also funds low-income nutrition programs. The House also OK'd a bill with 9-11 panel recommendations aimed at bolstering security in high-risk cities and U.S. ports.