This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stocks Finish Week With a Thud

The slowdown was attributed to weakness in export growth and the construction sector, while investment and domestic consumption supported growth.

Michael Gayed, chief investment strategist at Pension Partners, thinks the latest headlines support the idea that the Federal Reserve may resort to additional stimulus measures.

"For the bulls, the trifecta of slower growth in China, moderating inflation in the U.S., and moderately strong earnings only means one thing: Further monetary easing remains a very real possibility in the face of deflationary pressure," he said in an email.

"Moderating inflation confirms the Fed's view that it can keep rates low for a while (bullish), slower than estimated growth in China means the People's Bank of China could begin to ease rates and jumpstart lending in response (bullish), and earnings surprising modestly on the upside means that there is a lot of room for expectations to continue to build for further stimulus (bullish). While QE3 remains a question mark, China's monetary stance may now be more important for the bulls than the Fed's."

"[The worse than expected China report] was allayed a bit by the trade numbers for the U.S. that showed exports growing fairly strong, surprisingly -- a narrowing trade deficit, and that can only happen if growth in the rest of the world is actually not as bad as one might think," added Brian Gendreau, market strategist, Cetera Financial Group.

Commodities fell and the 10-year Treasury climbed on Friday.

May oil futures were down 77 cents to $102.87 a barrel, while June gold futures lost $23.80 at $1,656.80 an ounce.

The benchmark 10-year Treasury was up 18/32, diluting the yield to 1.99%, while the U.S. dollar index advanced 0.8%.

Europe finished weak, further damaging sentiment on Wall Street as data showed Spanish banks are relying heavily on funding from the European Central Bank. Banco Santander (STD) was down 4.5%. London's FTSE settled 1% lower and Germany's DAX gave up 2.4%.

In Asia, however, Japan's Nikkei Average settled 1.2% higher and Hong Kong's Hang Seng index closed up 1.8% despite the disappointing China GDP data, with those markets focusing instead on the country's surging bank lending figures and the increasing possibility of monetary policy easing.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,039.49 +60.36 0.36%
S&P 500 1,992.37 +5.86 0.30%
NASDAQ 4,532.1040 +5.6220 0.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs