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 Edge Up to Close at Multi-Year Highs

NEW YORK ( TheStreet) -- The major U.S. equity averages finished a banner week with mild gains on Friday, extending multi-year highs, as investors looked ahead to the potential for more stimulus next week from the Federal Reserve.

While a weak August employment report engendered some disappointment that the U.S. economy wasn't able to build on the previous month's strong job creation, the shortfall in nonfarm payrolls also reinforced the perception that the central bank will unveil plans for another asset purchase program at its next policy meeting on Sept. 12-13.

Even a warning from chip giant Intel (INTC) wasn't enough to spark a round of profit-taking after Thursday's robust rally on enthusiasm about the European Central Bank's own bond-buying plan.

The Dow Jones Industrial Average closed up nearly 15 points, or 0.11%, at 13,306.64, the best finish since December 2007. The blue-chip index is now up 8.91% in 2012 after surging 1.6% this past week.

Breadth was even within the Dow. The biggest percentage gainers were Alcoa (AA), Bank of America (BAC), and Caterpillar (CAT).

The weakest performers were Cisco (CSCO), Intel, Kraft Foods (KFT), and Wal-Mart Stores (WMT).

Intel shares were off nearly 4% after the world's biggest semiconductor company lowered its third-quarter revenue outlook, citing weaker than expected demand in a challenging macroeconomic environment.

Kraft's stock dropped more than 5% after the company failed to impress Wall Street with the post-split outlook for its grocery business spin-off.

The S&P 500 rose nearly 6 points, or 0.40%, to finish at 1438. The index gained 2.2% on the week and is now up 14.34% year-to-date and sitting at closing levels unseen since January 2008.

Held back by Intel, the Nasdaq added less than a point, or 0.02%, to settle at 3136.42, another best closing level in more than decade. The index tacked on 2.3% for the week and is up 20.39% this year.

Apple (AAPL - Get Report) shares hit a new all-time high during the session, as did Amazon (AMZN - Get Report), which rose more than 3% a day after unveiling well-received updates to its Kindle e-reader and Kindle Fire tablet product lines.

Basic materials, consumer cyclicals and energy were the strongest sectors in the broad market, while health care, consumer non-cyclicals and utilities were in the red.

Volume reached 3.70 billion on the Big Board and 1.74 billion on the Nasdaq.

The Bureau of Labor Statistics said Friday that 96,000 jobs were added to the U.S. work force in August, far below the addition of 125,000 jobs that economists were expecting. Meanwhile, the report showed that the unemployment rate edged down to 8.1%, mainly because of a lower labor force participation rate, i.e. people halting their employment searches. Economists had expected the unemployment rate to stay at 8.3%.

"The unemployment rate improved in August ... for the wrong reasons," said Russell Price, senior economist at Ameriprise Financial.

Revisions to previous months hurt jobs growth by a total of 41,000.

"With job growth returning to a double-digit pace, we believe those on the FOMC inclined to ease further will see their case bolstered sufficiently," said Dan Greenhaus, chief global strategist at BTIG.
1 of 3

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
AAPL $110.38 0.00%
AMZN $532.54 0.00%
FB $92.07 0.00%
GOOG $626.91 0.00%
TSLA $247.57 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs