Stocks failed to make much headway on the final day of the week and closed with slight gains as strong quarterly numbers from a pair of technology names failed to nudge investors out of their summer slumber. A disappointing consumer sentiment report also tempered investors' enthusiasm.
Late Thursday's upbeat earnings reports from Blackberry-maker Research in Motion Ltd. RIMM and Oracle Corp. ORCL helped send stocks higher at the open but the rally fizzled out as investors questioned the sustainability of the economic recovery. Research in Motion closed up 0.5% after rising nearly 5% in morning trade. Oracle closed with a gain of 8.4%.
The Dow Jones industrial average added 13 points, or 0.1%, to 10,607.85. The index has advanced in seven of the past eight sessions. The broader Standard & Poor's 500 index edged up less than 0.1% to 1,125.59, and the Nasdaq composite added 12.36, or 0.5%, to 2,316.
The Dow industrials benefitted from the strength in technology shares and registered its third-straight weekly gain. The 30-share index advanced 1.4% on the week. The tech-laden Nasdaq composite index led with a 3.3% weekly gain. The S&P 500-stock index gained 1.4% during the week. On Friday, four stocks rose in price for every three that fell.
Technology stocks were the leading gainers on the week, up 4.5%. The rally in tech shares was followed by basic materials (+2.5%), consumer services (+1.8%), industrials (+1.7%), telecommunications (+1.6%), health care (+1.2%), financials (+1.1%), consumer goods (+0.8%). Utilities (-0.8%) and oil and gas (-0.6%) led on the downside.
Financials led on the downside, with shares in JP Morgan Chase JPM dropping 2.3%. Shares in Bank of America BAC fell 1.1% and Morgan Stanley MS dropped 1.2%.
This morning Lennar LEN CEO noted, "Although high unemployment and foreclosures have continued to present challenges for the national housing market, our communities have been less impacted than the broader market." The company reported estimate-beating numbers, with earnings of 16 cents coming in sharply above expectations of 5 cents on revenues of $825 million ahead of estimates of $765 million.
Treasurys were in demand Friday, with the yield on the 10-year note dropping to 2.74% from 2.76%. Gold prices settled at $1277.50, after touching a record-high of $1284.40.
Tuesday's FOMC read on the economy presents the most market-moving potential, perhaps, as a consensus appears expectant of lowered growth expectations - not enough as yet to cause expansion of non-conventional policies of monetary easing.
Last week's Barclays BCS assessment that Ireland may need financial help was countered by the Irish finance minister over the weekend who tried to calm jitters by stating the "underlying economic structure is very strong." Ireland said it would go ahead with Tuesday's scheduled $2 billion bond auction.
BANK OF AMER CP (BAC): Free Stock Analysis Report
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RESEARCH IN MOT (RIMM): Free Stock Analysis Report
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