NEW YORK ( TheStreet) -- The major U.S. equity averages finished with solid gains Friday, capping a stellar week as the risk-on trade flourished thanks to the bold stimulus plan outlined by the Federal Reserve.
The central bank chose Thursday to go on the offensive, unveiling an open-ended program to buy $40 billion worth of mortgage-backed securities per month until the job market strengthens, pushing its pledge to keep its zero interest rate policy into at least mid-2015, and maintaining its current bond maturity extension efforts through the end of this year.
A surprise leap in consumer confidence for September despite higher gasoline prices was also helping investor sentiment on Friday. Bonds were hammered, the dollar skidded and gold ticked up as traders repositioned in the wake of Fed Chairman Ben Bernanke's promise to stick with a highly accommodative monetary policy even after the U.S. economy starts to strengthen.
The Dow Jones Industrial Average rose more than 54 points, or 0.40%, to close at 13,593. The blue-chip index finished the week up 2.15%, booking a gain for the eighth time in the last 10 weeks and sixth time in the last seven sessions. Year-to-date, the Dow is now up 11.26%.Breadth was positive on the Dow with winners outpacing losers, 19 to 11. The biggest percentage gainers were Alcoa (AA), Caterpillar (CAT), and du Pont (DD) and United Technologies (UTX). Home Depot (HD) was also a standout gainer after the Atlanta-based home improvement products retailer said it plans to close its seven remaining big box stores in China and cut 850 jobs. The stock gained 2%. Prominent Dow decliners included AT&T (T), Merck (MRK), Pfizer (PFE), and Verizon (VZ). Bernstein Research lowered its earnings estimates for AT&T, Verizon and Sprint (S) on Friday to account for the impact of Apple's (AAPL) iPhone 5 going on sale in the calendar third quarter. "The iPhone is a double edged sword for the carriers. It drives usage, and (hopefully) higher ARPU
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV