YAHOO [BRIEFING.COM]: 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.
It was a choppy and uneventful
final session for the precious metals. Gold futures ended just below the flat
line at $1747.20 per ounce while silver posted gains of 0.3% to finish at
$35.29 per ounce. Both metals traded sideways right around the unchanged mark
for the majority of the day. On the week, gold rallied for approx $105 or 6.3%,
while silver futures surged $3.65 or 11.5%.
The same could be said for
trade in crude oil futures, which posted a modest decline of 0.7% to close at
$93.32 per barrel. On the week crude oil rallied for % and managed to trade to
its best levels in close to three months at $94.65. Natural gas rallied for
4.1% to close at $3.92. Futures were aided by colder weather, coupled with
possibility of snow in some places, blanketing major consuming portions of the
country.
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. DJ30 +22.56 NASDAQ -1.48 NQ100 +0.1% R2K -0.6% SP400
-0.3% SP500 +0.49 NASDAQ Adv/Vol/Dec 1125/1.84 bln/1432 NYSE Adv/Vol/Dec
1484/1.01 bln/1512