This Day On The Street
Continue to site right-arrow
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 Bounce on Bernanke But Finish Week Lower

Stocks in this article: ^DJI ^IXIC ^GSPC SAI SPLK OVTI ZUMZ

In the broad market, the strongest sectors were basic materials, energy and technology. Only utilities finished in the red. Volume was thin once again, reaching 2.07 billion on the New York Stock Exchange and 1.55 billion on the Nasdaq.

For much of the early morning, prior to Bernanke, the markets were getting a lift from a report Friday from Germany's Bild newspaper that Bundesbank chief Jens Weidmann has mulled quitting several times over his opposition to the European Central Bank's plans for a new bond buying program.

The report stirred up hopes of a resignation that would likely indicate the ECB was moving closer to launching a program. Stocks then cut some gains after Standard & Poor's lowered Spain's Catalonia region to junk status.

Friday's economic data was mixed. The Chicago Institute of Supply Management reported that Chicago purchasing managers index fell a more than expected in August to 53 from 53.7 in July. Economists had expected a level of 53.5.

The final read on the University of Michigan Consumer Sentiment Index for August came in at 74.3, better than the 73.6 economists were expecting.

The Census Bureau released data showing that factory orders rose 2.8% in July, better than the rise of 1.9% that economists were expecting, and the biggest gain since July of last year.

The FTSE in London was up 0.20% and the DAX in Germany was tacking on 0.88%, both steadily gaining ground even after another round of soft employment numbers out of Europe. The eurozone jobless rate hit a record high in July and the Italian unemployment rate remained elevated at a seasonally adjusted 10.7% last month.

The Hong Kong Hang Seng index closed lower by 0.36% and the Nikkei in Japan finished down 1.60% after a disappointing report on the country's July industrial production numbers.

Bernanke's speech got the biggest reaction in the bond, currency and gold markets. The benchmark 10-year Treasury rose 24/32, diluting the yield to 1.548%. The greenback weakened 0.64%, according to the dollar index.

October crude oil futures rose $1.85 to settle at $96.47 a barrel and December gold futures soared $30.50 to settle at $1,687.60 an ounce as traders took Bernanke's speech as a clear sign that quantitative easing -- viewed as favorable for precious metals -- was on the way.

2 of 3

Select the service that is right for you!

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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