For now, stocks don't want to fall

The market ends with small gains at best but finishes higher for a second straight week. A number of measures of investor confidence are positive. Big banks dominate next week's earnings.

By Charley Blaine Jan 11, 2013 6:32PM
 © Photodisc Blue/Getty ImagesOn the surface, Friday's close looked like nothing happened in the stock market.

Except that the major averages finished higher for a second week in a row. And that interest rates moved a touch lower. And that energy and precious metals futures moved slightly lower.

For the month, U.S. stocks are higher. That's due in part to economic reports that haven't been scary. Earnings reports so far look OK; we'll know a lot more in the next weeks.

The bottom line about the market is that there's a lot of money that doesn't believe a significant pullback is in the offing. Not yet anyway. So the market's resilience, a reality for the last few months, continues.

The Dow Jones industrials ($INDU) finished up a very modest 17 points to 13,488. The Standard & Poor's 500 Index ($INX) was down less than a tenth of a point to 1,472. That means the index is still effectively at a 5-year high. The Nasdaq Composite Index ($COMPX) added 4 points to 3,126.

It may sound loopy to say the market doesn't want to go down. What about the debt ceiling crisis? Clearly investors (or the computers that drive so many of today's buy/sell decisions) think a deal will be struck.

The major averages are trading 3% to 5% above their 200-day, 50-day and 20-day moving averages. Those are signals of investor confidence. The 14-day relative strength index for the averages are below 70. That also suggests the market isn't getting ahead of itself.

For the week, the Dow and S&P 500 rose 0.4%. The Nasdaq added 0.8. For the month, the Dow is up 2.9%. The S&P 500 has climbed 3.2%, and the Nasdaq has risen 3.8%.

Crude oil (-CL) fell 26 cents to $93.56 on Friday and was up 0.5% for the week. Gold (-GC)  fell $17.40 to $1,660.60 an ounce. Gold was up 0.7% for the week.

Platinum
(-PL) slipped $3.10 an ounce to $1,631.20. But it was up 4.7% for the week as some traders took the talk about minting a $1 trillion platinum coin to contain the federal deficit seriously.

The 10-year Treasury yield fell to 1.875% from Thursday's 1.894% and 1.915% a week ago.

Some stocks made some interesting moves. Among the gainers: Facebook (FB); Best Buy (BBY), the S&P 500's top performer; Union Pacific (UNP), Netflix (NFLX) and Coach (COH).

Boeing (BA) was the most visible laggard because of its issues with the 787 Dreamliner. The stock fell 3.3% on the week to $75.16. Perrigo (PRGO) was the weakest S&P 500 stock, down $6.38 to $103.85. Goldman Sachs downgraded the maker of over-the-counter health-care products, saying sales growth is likely to slow in the next few months.

Next week's earnings include Big Bank reports -- JPMorgan Chase (JPM), Bank of America (BAC), Goldman Sachs (GS) and Morgan Stanley (MS) -- as well as numbers from Intel (INTC) and General Electric (GE).

More on Money Now


17Comments
Jan 11, 2013 9:25PM
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QEII and III are puffing up the sails...that's all.   I remain skeptical..
Jan 11, 2013 8:51PM
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Ben Barnanke behind the curtain toto so gracefully pulls aside....

 

 "Pay no attention to that man in the corner there!!...."

Jan 11, 2013 7:57PM
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LOL Whats going to happen to all the wall street idiots when the FEDs stop their QE3 !!! They are only pumping 40 BILLION a month in this useless place they call wall street!!! But then they are only second to the TRULY most useless place in the World ! The US House and Congress of the USA... Only in the USA Land of the free Home of the truly STUPID < That's the American people ..
Jan 12, 2013 3:44PM
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I've got TWO Twinkies left, in the freezer now..Been weaning myself off of them...

And I'm almost praying they "do not"  sell out to Mexican Groupo or something like that ??

 

Here's the deal: You can work and EARN big money, MOST  don't; Unless having a Great job or you are part owner or more in a Company...Usually the shareholders earn pennies on their dollars.

 

So like any Game or Gaming, you have to put your money on the table, take some risk and sometimes go all in, to make the big return....We can all get lucky sometimes, but then again most bets are favored towards the House.

Here's the trick: Always play to increase your odds; Knowing or learning more about the Game, can increase your odds, and lessen the chance of losses...Same rules apply for Casinos or Wall St..

 

Is Wall St. or the Markets headed for a correction, probably and even maybe ?? Just work at increasing your odds....Maybe you will do better at the Game.?? 

Jan 12, 2013 12:20PM
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Well the bastards...Sold Wonder Bread and Nature's Pride for $390 million..to Flowers.

And have still retained the snack divisions or most anyway...?Twinkies and others.

 

Please don't tell me again that Hostess Corp. is only worth about $160 mill, like some poster tried.

I pegged it close to a Billion or more,with a "B", I might be a little high, but we shall see...?

And don't tell me it doesn't, PAY to be a "Vulture Capitalist", wonder if Bain had a piece of it...?

I'm sure THEY will do the RIGHT THING.....And SHARE a little with the employees pension plan..

You see it was the Founders and the Employees that built a fine Company...

And now it is Venture Capitalist and Executives tearing it apart, running from"all obligations", and casting the pieces to the 4 winds...For MONEY, how nice.... SEE WHO GETS RICH.

 

Jan 11, 2013 8:04PM
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...prefer to see how we navigate in D.C...  My expectations are low.  If think we see a better BUY opportunity by Tax-Day.
Jan 12, 2013 3:49PM
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Those that have been out of the Markets for the last 3-4 years, Have only "Doubled Down" on their losses...And it is a sad day...If most of it was retirement money..??
Jan 11, 2013 8:34PM
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Although the DOW and S&P rose slightly for the week..(less then.5%)...

 

Some Sectors and Equities had some pretty good runs averaging near 2% to the upside.

With worth increasing for our investments...Paring out any dividends, still was a decent week.

 

I attribute that to weightings of a few bad apples on the DOW and S&P...

Many others did just fine... 

Jan 11, 2013 7:51PM
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I`m back.After the Consumer electronics show in Las Vegas.The market does good

when I`m away.There`s 1.7 trillion on the sidelines getting zero.That money is going

into the market to propel it several % points higher.The far right hates all these good

things happening on Obama`s watch.My advise:enjoy the prosperity.

Jan 13, 2013 11:53AM
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Maybe we could trade states in exchange for the trillions of
dollars we owe to China. We could pay them with the welfare 
States that voted for Obama. That way we would get rid of our
Debt and the deadbeats at one exchange.
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