This Day On The Street
Continue to site
ADVERTISEMENT
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 Close Week Higher on QE3 Confidence

The strongest sectors in the broad market were basic materials, energy and consumer cyclicals. Health care, utilities and consumer non-cyclicals were the only groups in the red.

Volume was healthy on Friday, totaling more than 5 billion on the New York Stock Exchange and 1.98 billion on the Nasdaq. Winners were ahead of losers by roughly 2-to-1 ratios on both the Big Board and Nasdaq.

Brian Gendreau, market strategist at Cetera Financial Group, noted the track record for buying equities while the Fed is engaged is executing a quantitative easing program is very good since the financial crisis, saying the S&P 500 rose 36.4% during QE1 and 10.2% during QE2.

"Other matters, such as the impending fiscal cliff and Europe's continuing troubles could, of course, work in the other direction, but the additional liquidity from QE3 will be viewed as a source of support for the market by investors, in my view," he said.

Gendreau expects this third round of stimulus to have a lesser impact on the economy than previous bond-buying programs though. Long-term interest rates are already at such low levels that going down a few basis points further is unlikely to have a big impact on household or corporate borrowing and investing decisions, he said.

The international and commodity markets rallied as well Friday, while Treasuries and the dollar declined sharply.

The FTSE in London was up 1.57% and the DAX in Germany was gaining 1.31%. The Hong Kong Hang Seng index settled up 2.90% and the Nikkei in Japan finished up 1.83%.

The benchmark 10-year Treasury plunged 1 10/32, raising the yield to 1.871%. The greenback tumbled 0.53%, according to the dollar index.

October crude oil futures added 69 cents to settle at $99 a barrel and December gold futures rose 60 cents to settle at $1,772.70 an ounce.
2 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $118.44 -2.36%
ALOG $80.86 0.38%
FB $94.14 0.14%
GOOG $631.21 0.90%
TSLA $259.99 -2.31%

Markets

Chart of I:DJI
DOW 17,598.20 -91.66 -0.52%
S&P 500 2,098.04 -5.80 -0.28%
NASDAQ 5,115.3820 -12.8990 -0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs