What a Week: Whither Santa?

But stock investors had their eyes on the negative, focusing on the economic weakness within the durable goods orders report. The Census Bureau reported that overall durable goods orders rose 1.9% in November, higher than the 1.3% expected by analysts. But orders fell 1.1% excluding transportation equipment, below expectations for a 1% rise. Also, inventories are still accumulating. They rose for the ninth straight month in November, up 0.3%.

The ratio of inventories to shipments rose to 1.41 in November -- the highest level since 2003, notes Peter Kretzmer, senior economist at Banc of America Securities. "With declining orders and shipments, [the data] suggests that production cutbacks can be expected as the new year begins," he writes.

Anxiety over inventories and shipments began earlier in the week, when FedEx(FDX Quote) reported earnings that were in line with estimates for its second quarter, but offered weaker-than-expected guidance for its third quarter. Simultaneously, the price of copper and other metals fell, putting pressure on related stocks such as Freeport McMoran Copper & Gold (FCX Quote).

The Dow Jones Transportation Average slumped 4.1% this week amid concern about economic slowing. FedEx fell 6.6% on the week while freight delivery services company CH Robinson Worldwide(CHRW Quote) shed 3.1% Friday, and 8.2% this week.

In tech, things weren't all bad despite the Nasdaq's slide this week. Shares of Red Hat(RHT Quote) jumped 25.1% Friday on strong earnings. Blackberry maker Research In Motion(RIMM Quote) initially gained ground when the company posted strong revenue in its earnings report, but investors sold into the news, leaving the stock down 2.8% Friday.