This Day On The Street
Continue to site
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 Rise After Bernanke Sees 'Scope for Further Action'

NEW YORK ( TheStreet) -- The major U.S. equity averages rose Friday on news of comments from Federal Reserve Chairman Ben Bernanke showing his support for additional stimulus for the economy.

In addition, Reuters reported the European Central Bank is mulling setting yield-band targets for a new bond-buying program in an effort to protect its strategy and prevent speculators from trying to cash in.

The Dow Jones Industrial Average gained 101 points, or 0.8%, at 13,158. The blue-chip index, which began the day up 6.9% so far in 2012, was mired in a four-day losing streak. The index closed the week down 0.9%.

In response to questions from U.S. Rep. Darrell Issa (R., Calif.), Bernanke revealed his view that there "is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery" in an Aug. 22 letter to the congressman.

Bernanke also said the central bank's "Operation Twist" program is still "working its way through the economic system" and indicated the benefits of further action must be balanced against the costs.

Breadth was positive within the Dow, with winners outpacing losers 26 to 4. The biggest percentage gainers were American Express (AXP), Kraft Foods (KFT) and Verizon (VZ).

The blue-chip decliners were Caterpillar (CAT), Hewlett-Packard (HPQ) and Intel (INTC).

The S&P 500 closed up 9 points, or 0.7%, at 1,411. The index finished the week down 0.5%.

The Nasdaq gained 16 points, or 0.54%, at 3070. The exchange lost 0.22% for the week.

The strongest sectors in the broad market were health care, consumer non-cyclicals and conglomerates. Basic materials were under pressure.

Once again, volume was very light, with 2.56 billion shares changing hands on the Big Board and 1.33 billion shares in play on the Nasdaq.

Stocks were in the red earlier in the day, driven lower by weaker-than-expected durable goods data and resurgent eurozone concerns.

Before the open, the Census Bureau said durable goods orders rose 4.2% in July, the third consecutive monthly increase. But excluding transportation, new orders decreased 0.4%. Economists on average expected durable goods to increase 2.4% in July with the core figure seen rising 0.5%.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ADSK $59.82 0.00%
MSG $156.98 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs