Dow closes up 39, but stocks end week lower
A falling dollar lifts gold, oil and natural gas. Financial and materials stocks are strong, with Bank of America a leader. Medco Health loses a big contract; shares tumble. Markets will close Monday for Memorial Day.
Updated: 6:40 p.m. ET
Stocks ended the day modestly higher for the third straight day in a rally fueled by a lower dollar and gains in materials and financial stocks.
But the rally wasn't enough to push the market into the black for the week. And with one trading day to go in May, the market is looking at its first monthly loss since November and worst loss since August.
You could see the strength of financials in Bank of America (BAC), which closed up 2% to $11.69 and was the top stock in the Dow Jones Industrial Average ($INDU). Fertilizer maker CF Industries (CF) rose 3.3% to $155.19. Freeport-McMoRan Copper & Gold (FCX) was up 2.7% to $51.73. Anadarko Petroleum (APC) was up 1% to $78.66.
The market has had to contend in May with evidence of a softening economy as well as a break in many commodity prices at the beginning of the month. Gold has lost 1.3% this month. Silver has tumbled 22.1%. Crude oil has dropped 11.7%, and there has been relief at the gas pump.
Markets are closed Monday for Memorial Day.
The Dow closed up 39 points to 12,442. TheStandard & Poor's 500 Index ($INX) added 5 points to 1,331, and the Nasdaq Composite Index ($COMPX) rose 14 points to 2,797.
Article continues below.
The Dow fell 0.6% for the week, with the S&P 500 and the Nasdaq off 0.2% each. For the month, the Dow is looking at a 2.9% decline, with the S&P 500 down 2.4% and the Nasdaq down 2.7%. But the blue chips are up 7.5% for the year. The S&P 500 is up 5.8%, while the Nasdaq is up 5.4%.
|Markets for the week|
|5/27/2011||5/20/2011||% chg.||YTD chg.|
|Dow industrials ($INDU)||12,441.58||12,512.04||-0.56%||7.46%|
|S&P 500 ($INX)||1,331.10||1,333.27||-0.16%||5.84%|
|Russell 2000 ($RUT.X)||836.26||829.06||0.87%||6.71%|
|Crude oil (-CL)||$100.59||$100.10||0.49%||10.08%|
|U.S. Dollar Index||75.02||75.58||-0.74%||-5.39%|
|(per troy ounce)|
Bank stocks really did have a good day
Not only did Bank of America move up 2%, but Goldman Sachs (GS) was up 2% to $138.66. Capital One (COF) added 2.2% to $54.04. American Express (AXP) added 0.9% to $51.13, and JPMorgan Chase (JPM) rose 0.8% to $42.79.
One reason for the gains was reports that global capital requirements (so-called Basel III standards) may not be as tough as bankers feared. Consumer confidence was a little better.
And the stocks have become cheap. The Standard & Poor's Banking Index ($BIX) hit a 5-month low on Tuesday and bounced higher.
Dollar's fall helps commodities
The dollar was lower against the euro, the Japanese yen and the British pound. The U.S. Dollar Index, which measures the greenback against a basket of currencies, was down 0.8% to 75.04.
Gold settled up $13.50 to $1,536.30 an ounce and ended with a 0.9% gain for the week. Silver was up 36.5 cents to $37.70 an ounce and finished the week up 7.9%. Copper added 7.5 cents to $4.186 a pound, ending the week up 1.8%.
Crude oil rose 36 cents to $100.59 a barrel just before the New York settlement and ended up 0.5% for the week.
Motorists heading out of town for the Memorial Day weekend will get a bit of a break. The national average for regular unleaded gas was $3.809 a gallon, AAA's Daily Fuel Gauge Report shows. That's down 4.4% from a peak of $3.985 a gallon on May 5. But gasoline is up 38% from a year ago.
Interest rates were off slightly, with the 10-year Treasury yield rising to 3.063% from 3.061% on Thursday.
|Energy prices -- New York close|
|Fri.||Thur.||Month chg.||YTD chg.|
|Crude oil (-CL)||$100.59||$100.23||-11.71%||10.08%|
|Heating oil (-HO)||$2.9905||$2.9829||-8.71%||17.56%|
|Natural gas (-NG)||$4.5180||$4.3600||-3.83%||2.57%|
|(per mil. BTU)|
|Unleaded gasoline (-RB)||$3.0920||$3.0483||-10.76%||26.04%|
|(per gallon; AAA)|
Pending home sales dive; consumers feel fetter
Today's economic news was mixed.
The National Association of Realtors said pending home sales plunged 11.6% in April, after gaining 3.5% in March. The market had only expected a decline of 1.4% for April. The trade group blamed the decline on higher gasoline prices and jobless claims and terrible weather that kept many would-be homebuyers at home.
The University of Michigan upwardly revised its May consumer sentiment index reading to 74.3, thanks in part to falling gasoline prices. Economists hadn’t expected any revisions to the prior May index reading of 72.4, according to Briefing.com. In April, the consumer sentiment index came in at 69.8.
Meanwhile, the Commerce Department said personal income rose 0.4% in April, meeting expectations, after similar growth in March. Personal spending rose 0.4% in April, coming in slightly below expectations for a 0.5% uptick, after rising 0.5% in March.
Fitch Ratings revised its outlook on Japan to negative from stable, citing the March 11 earthquake and tsunami, among other reasons. The ratings agency said Japan's "sovereign credit-worthiness is under negative pressure from rising government indebtedness."
Leaders and laggards
Online professional network company LinkedIn (LNKD) saw its stock advance 2.3% to $88.32. Options activity in the stock, which had its IPO last week, started today.
Advanced Analogic Technologies (AATI), up 54.6% to $6.03, tops in the Russell 2000 Index ($RUT.X). The maker of power-management chips for mobile phones and computers agreed to be bought by Skyworks Solutions (SWKS) for $6.13 a share. Skyworks declined 5.7% to $25.50.
Broadcom (BRCM), up 5.4% to $36.52, tops among S&P 500 stocks. The maker of semiconductors for wireless headsets and television set-top boxes was added to FBR Capital Markets’ Top Picks list. Analyst Craig Berger said in a note that the stock presented “an attractive and rare value opportunity.”
Dresser-Rand Group (DRC), up 5.4% to $51.67. The maker of equipment for the oil and natural-gas industries will replace AMB Property (AMB) in the S&P 400 index ($MID.X).
Marvell Technology Group (MRVL), up 11.1% to $16.17. The maker of the processor that runs BlackBerry smartphones forecast second-quarter profit of 35 cents to 39 cents a share, excluding one-time charges. The Street estimate has been 33 cents.
McClatchy (MNI), up 6.9% to $2.95. The publisher of the Miami Herald sold a 14-acre parcel of Miami land for $236 million to Genting Malaysia BHD. The company started to sell the parcel, which includes the newspaper's building, six years ago. The deal allows the Herald to remain in the building rent-free for two years as it searches for a new home.
Medco Health Solutions (MHS), down 9% to $58.66. The largest U.S. pharmacy benefits manager will lose a $3 billion Blue Cross Blue Shield Association contract to CVS Caremark (CVS) in 2012. The contract represents almost 5% of its revenue. CVS Caremark rose 2.1% to $38.94.30.
Mentor Graphics (MENT), down 8.1% to $13.46. The software maker forecast second-quarter earnings of about 5 cents a share, excluding some items, missing the consensus estimate of 17 cents.
OmniVision Technology (OVTI), down 8.9% to $33.18. The maker of image sensors for camera phones said first-quarter earnings may be as low as 64 cents a share. The Street had been looking for 69 cents. Revenue also may fall short of estimates.
Weyerhaeuser (WY), down 5.4% to $20.87. The second-largest owner of U.S. timberland was cut to "sell" from "hold" by Deutsche Bank, which said the outlook is "deteriorating" in most of the company’s businesses.
|Short hits from the markets -- New York close|
|Fri.||Thur.||Month chg.||YTD chg.|
|13-week Treasury bill||0.040%||0.050%||0.00%||-66.67%|
|5-year Treasury note||1.709%||1.727%||-13.47%||-15.23%|
|10-year Treasury note||3.064%||3.061%||-7.04%||-7.29%|
|30-year Treasury bond||4.240%||4.220%||-3.77%||-2.80%|
|U.S. Dollar Index||75.018||75.632||2.61%||-5.39%|
|(in U.S. $)|
|U.S. $ in pounds||£0.606||£0.610||1.09%||-5.51%|
|Euro in dollars||$1.432||$1.414||-3.32%||7.05%|
|(in U.S. $)|
|U.S. $ in euros||€ 0.698||€ 0.707||3.44%||-6.58%|
|U.S. $ in yen||80.972||81.350||-0.57%||-0.49%|
|U.S. $ in Chinese||6.515||6.489||0.05%||-1.51%|
|(in U.S. $)|
|(in Canadian $)|
|(per troy ounce)|
|(per troy ounce)|
|Crude oil (-CL)||$100.59||$100.59||-11.71%||10.08%|
loe, i am thinking of going up to nyc to see one of the upcoming yankee/bosox games. after the red-hot red sox they have a series with the best record in baseball in the tribe of cleveland.
we'll see if the yanks are for real or just a bunch of guys in pinstripes.
( ( ( ( ( ( ( ( (
Is memorial day about the energizer bunny? He sure keeps on going and going and going doesn't he? Quite memorable indeed!
Red Sox v.s. Yankees
This should get WWIII started.
Would rooting and always standing up for your home team be a form of "Patriotism"?
Thank you for participating in this survey my confused and brainwashed sheeple!
Funny stuff. 2 sides to every trade. If there are "manipulators" trying to move the market lower what do you call the guys trying to move the market higher? I just get a kick out of the same theme at the same time every day. I actually thought it was a joke at first,...that's the scary part.
better put some attends on when reading this blog ron .....
you know, one of these days this guy is going to open a trading pamphlet or go to a website and stumble across a diagram of how traders use put options to go short and it will be like a young teenage boy opening up his first girlie magazine.
bet he becomes a manipulator at that point ......
who is this guy, george patton?
Remember, freedom is not free...Especially you liberal pos that cant stand our military.
of course freedom must be fought for, the problem is that we often become the oppressors that other countries must now fight to be free from! i would say that cgt and universal are both uninformed, but that would be an insult to uninformed people ......
liberals have no issues with the military defined by brave soldiers and officers, and in fact support them as gallant heroes, even sending off their own children to serve and sometimes die - what they have a problem with are the pos conservative politicians who live off of pos lobbyist money from the pos military-industrial complex and big-oil, who then order our young men and women into harm's way for pos reasons. worse, they have a problem with those dimly lit pos conservatives unable to see how their votes are manipulated by jingoistic war-hawk patriotic rhetoric used to mask the greedy capitalistic motives behind most wars.
INCOMING !!! .........
You know I was thinking that just a couple of years ago our government spent over a trillion bucks bailing out Chrysler, GM, and a bunch of big banks (companies that have ripped us off for years with poor quality products, terrible customer service, and a host of punitive fees and rate increases). Now the government still owns much of the worthless Fannie/Freddie Macs, AIG, and a host of other almost insolvent financial companies and have nothing to show for them. Now, when our nations education system is in danger of total collapse, teachers are being laid off, students being crammed 30-40 to a classroom, getting no one-on-one instruction, and are in danger of falling well behind advancing nations like China and India, our government (both state and federal) are further gutting our school systems. Instead of investing in the future (our children), we are not only bankrupting the nation that they will inherit, we are also making sure that fewer and fewer of them will have the necessary knowledge and skills to compete in the real world and make a decent life for themselves. State and federal governments are acting irresponsible in cutting funding for education. While we spend billions on killing Libyans in hopes of keeping oil flowing, we are taking billions from education. We will soon see a day when there will be nothing but a bunch of poorly trained, barely qualified teachers in our classrooms. Class sizes will top 40 nation wide ensuring that those who need special attention and help do not get it. We will graduate a complete generation of barely educated children without the skills and knowledge to compete with graduates from other counties. It's time to start cutting other programs such as Welfare, food stamps, free housing, medicaid, etc. It's quit sending billions of dollars to countries like Pakistan to help them produce more advanced nuclear weapons and delivery systems...within easy reach of terrorist organizations. It's time to pump that money back into education and start taking education seriously. There is an old saying that says " those who can do, those who can't teach. Teachers took it a step further by saying those who can teach do, those who can't become principles. I'm going to take it one step further and say that those who can teach do, those who can't pass stupid laws about education. Our federal and state governments should absolutely be ashamed of themselves for shortchanging our children and offering them a future of poverty, inequality, and futility. Obama, governors of the 50 states, Congress...it is time to step into the 21st century and realize that education is the only great equalizer.
At least the manipulators couldn't move stocks too far in the green. Look for a better day tomorrow and let's get those stocks in the red where they belong.
"Life is looking up when stocks are going down"
"Life is good when stocks are bad"
"Life is a positive, stocks are a negative"
Pick up some physical gold and silver bullion plus basic food stocks, water, too.
No laughter, please, the economy is dying everywhere.
for cgt1 as he is off for the long weekend:
We are having a real fight down here but unfortunately at 1430 hrs the scumbags called to accelerate the selling so down we go,,,,Why? Because they can. Now all we can do is fight to stay on the green. Oh well, cheaters still rule on Wall Street and the manipulators are in control as usual. More after the close as I go back to fight on.
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
[BRIEFING.COM] The major averages continue to hover near their lows with the S&P 500 off by 0.2%. Yesterday's top performer, the industrial sector, is among the early laggards today as defense companies lag. General Electric (GE 24.15, -0.18) trades lower by 0.8% while the broader PHLX Defense Index is off by 0.4%.
Another large industrial subsector, the Dow Jones Transportation Average, holds a slim loss of 0.2%. Nasdaq -3.61 at 3478.57... NYSE Adv/Dec ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
After Tuesday's rally, expect a big raid no matter the news. That's probably the safest way to play it ahead of the Fed.