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
TheStreet Open House

Dow Gains During Big Earnings Week


NEW YORK ( TheStreet) -- Blue-chip stocks posted their first weekly gain in three as a wave of strong earnings reports offset worries about Europe and the global economy.

The Dow Jones Industrial Average rose 65 points, or 0.5%, to close at 13,029 after rising to as high as 13,082 earlier Friday.

The S&P 500 added 1 point, or 0.1%, at 1378. The Nasdaq finished in the red, down 7 points or 0.2% at 3000, with shares of Apple (AAPL) hitting a one-month low.

The Dow gained 1.4% this week, while the S&P 500 edged up 0.6% and the Nasdaq lost 0.6%.

Stocks began Friday on a strong note, as investors cheered strong quarterly reports from Dow companies on Thursday and Friday, and good economic data out of Europe. Markets lost steam by the end of the session as investors looked ahead to the earnings reports scheduled for next week.

"Next week there's just a tremendous number of earnings coming out and it's more of a reflection of what we've seen so far, which has been very mediocre earnings with not a lot of positive guidance going forward," says Jeffrey Sica, president and chief investment officer of SICA Wealth Management.

Despite the strong number of better-than-expected quarterly results so far, some investors remain skeptical of the financial state of major companies.

"Earnings continue to impress, outlooks are decent, not outstanding," said Mark Lamkin, president and CEO, Lamkin Wealth Management. Still, he said investors have been too cautious about earnings.

"This is kind of the Rodney Dangerfield economy, and Rodney Dangerfield markets -- it gets no respect," he says. "It's record GDP, it's record S&P 500 earnings, it's the best auto sales since 2008, it's 24 months of employment growth, and investors are still nervous."

Among the 30 Dow stocks, 22 stocks rose on Friday and eight declined. Microsoft (MSFT) led the Dow higher, advancing 4.6% after the Redmond, Wash.-based software giant reported third-quarter earnings of 60 cents a share on $17.41 billion in revenue after the bell on Thursday. Analysts polled by Thomson Reuters had expected earnings of 57 cents a share on $17.16 billion in revenue.

Travelers (TRV), Verizon (VZ), Procter & Gamble (PG) and General Electric (GE) were other gainers on the Dow.

GE reported first-quarter operating earnings of $3.6 billion, or 34 cents a share, compared to $4.2 billion, or 39 cents a share, during the fourth quarter, and $2.3 billion, or 21 cents a share, during the first quarter of 2011. The first-quarter earnings came in ahead of the 33-cent estimate among analysts polled by Thomson Reuters. Shares added 1.2% at $19.36.

Hamburger giant McDonald's (MCD) posted in-line, adjusted first-quarter earnings of $1.23 a share, up from $1.15 a share the same time last year, and revenue of $6.55 billion, up from $6.11 billion the prior year. The company was expected by analysts to post earnings of $1.23 a share in the March-ended quarter on revenue of $6.54 billion. The stock edged up 0.7% at $95.94.

Bank of America (BAC) was a prominent loser on the Dow, falling 4.7% to $8.36. Four analysts raised their target prices on Bank of America shares, following its first-quarter earnings announcement Thursday, but CLSA analyst Mike Mayo slapped a "sell" rating on the stock.

1 of 3

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 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

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