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Last Update: 28-Oct-11 17:28 ET
Weekly Wrap for October 24, 2011
In contrast to the action of the first four sessions of the week, stocks spent Friday trading close to the neutral line for a flat finish.
Trade on Friday lacked excitement. Even with the weekend immediately around the corner, many market participants were compelled to take early rest. Their fatigue came after stocks staged four consecutive swings of 1% or more.
To be fair, though, the final session of the week didn't feature much news flow, or at least enough of the sort that would bring participants back in to the fold. Earnings were generally better than expected, as has been the case all week, but overall broad market participants appeared uninspired by them. That said, Merck (MRK 35.11, +0.80) made a strong move on the back of a better-than-expected report. Fellow blue chip Chevron (CVX 109.64, +0.67) had a quiet session, despite an upside earnings surprise of its own. Whirlpool (WHR 51.80, -8.67) tumbled in response to an earnings miss.
Economic data featured a 0.1% increase in personal income during September, slightly less than the Briefing.com consensus forecast of 0.3% growth. Personal spending increased by 0.6%, just as had been expected. These numbers were already incorporated into the advance reading on third quarter GDP.
On Thursday, advance GDP data showed that the economy expanded at a 2.5% clip during the third quarter. That exceeded the 2.3% growth rate that had been broadly expected to follow the 1.3% increase in output posted in the prior quarter.
Another weekly initial jobless claims tally just above 400,000 was given little discussion, especially since most traders focused their attention on the European Union's (EU) plan aimed at improving the continent's precarious financial conditions. Although specifics weren't released, participants were pleased that the plan will increase the eurozone bailout fund to about $1.4 trillion, recapitalize banks, and cut Greece's debt obligations by 50%. The stock market spiked more than 3% on Thursday for its best single-session performance in more than two weeks, but financials fared even better by boasting a 6% gain as bank stocks benefited quelled concern about their presence in Europe.
Many investors had thought that they would have to wait a few more weeks for the plan, given that a meeting among members of the EU on Wednesday finished without any word related to the matter. Still, the belief that European leaders were committed to finding a solution helped bolster buying interest, such that the stock market gained more than 1%. That contrasted trade on Tuesday, when angst ahead of the meeting left the broad market to tumble 2% for its only loss of the week.
Trade in the first session of the week was broadly positive, resulting in a gain of more than 1% for the stock market. The advance took the S&P 500 back above the 1250 line for the first time in more than two months. Tech stocks, which collectively make up the largest sector by market weight, were some of the top performers, partly fueled by news that Oracle (ORCL 33.69, +0.03) acquired RightNow Tech (RNOW 43.10, -0.16) for a hefty premium over its prior session closing price.
Market participants return on Monday for one final session in October. The S&P 500 heads into that session riding four straight weekly gains and on pace for monthly gain of more than 13%, which would make for one of the stock market's best monthly performances on record.
..Nasdaq 100 +0.1%. ..S&P Midcap 400 -0.3%. ..Russell 2000 -0.6%. ..NYSE Adv/Dec 1484/1512. ..NASDAQ Adv/Dec 1125/1432.
Trade on Friday lacked excitement. Even with the weekend immediately around the corner, many market participants were compelled to take early rest. Their fatigue came after stocks staged four consecutive swings of 1% or more.
To be fair, though, the final session of the week didn't feature much news flow, or at least enough of the sort that would bring participants back in to the fold. Earnings were generally better than expected, as has been the case all week, but overall broad market participants appeared uninspired by them. That said, Merck (MRK 35.11, +0.80) made a strong move on the back of a better-than-expected report. Fellow blue chip Chevron (CVX 109.64, +0.67) had a quiet session, despite an upside earnings surprise of its own. Whirlpool (WHR 51.80, -8.67) tumbled in response to an earnings miss.
Economic data featured a 0.1% increase in personal income during September, slightly less than the Briefing.com consensus forecast of 0.3% growth. Personal spending increased by 0.6%, just as had been expected. These numbers were already incorporated into the advance reading on third quarter GDP.
On Thursday, advance GDP data showed that the economy expanded at a 2.5% clip during the third quarter. That exceeded the 2.3% growth rate that had been broadly expected to follow the 1.3% increase in output posted in the prior quarter.
Another weekly initial jobless claims tally just above 400,000 was given little discussion, especially since most traders focused their attention on the European Union's (EU) plan aimed at improving the continent's precarious financial conditions. Although specifics weren't released, participants were pleased that the plan will increase the eurozone bailout fund to about $1.4 trillion, recapitalize banks, and cut Greece's debt obligations by 50%. The stock market spiked more than 3% on Thursday for its best single-session performance in more than two weeks, but financials fared even better by boasting a 6% gain as bank stocks benefited quelled concern about their presence in Europe.
Many investors had thought that they would have to wait a few more weeks for the plan, given that a meeting among members of the EU on Wednesday finished without any word related to the matter. Still, the belief that European leaders were committed to finding a solution helped bolster buying interest, such that the stock market gained more than 1%. That contrasted trade on Tuesday, when angst ahead of the meeting left the broad market to tumble 2% for its only loss of the week.
Trade in the first session of the week was broadly positive, resulting in a gain of more than 1% for the stock market. The advance took the S&P 500 back above the 1250 line for the first time in more than two months. Tech stocks, which collectively make up the largest sector by market weight, were some of the top performers, partly fueled by news that Oracle (ORCL 33.69, +0.03) acquired RightNow Tech (RNOW 43.10, -0.16) for a hefty premium over its prior session closing price.
Market participants return on Monday for one final session in October. The S&P 500 heads into that session riding four straight weekly gains and on pace for monthly gain of more than 13%, which would make for one of the stock market's best monthly performances on record.
..Nasdaq 100 +0.1%. ..S&P Midcap 400 -0.3%. ..Russell 2000 -0.6%. ..NYSE Adv/Dec 1484/1512. ..NASDAQ Adv/Dec 1125/1432.
| Index | Started Week | Ended Week | Change | % Change | YTD % |
| DJIA | 11808.79 | 12231.11 | 422.32 | 3.6 | 5.6 |
| Nasdaq | 2637.46 | 2737.15 | 99.69 | 3.8 | 3.2 |
| S&P 500 | 1238.25 | 1285.08 | 46.83 | 3.8 | 2.2 |
| Russell 2000 | 712.42 | 761.00 | 48.58 | 6.8 | -2.9 |
