This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Stocks Confirm 'Santa Claus' Rally With Best Week Since October

NEW YORK (TheStreet) -- Major U.S. markets confirmed a 'Santa Claus rally' after data showed the U.S. economy expanded at its fastest pace since late 2011 as consumers pushed up spending, a key driver of U.S. growth. The Standard & Poor's 500 Index  posted its best week since Oct. 18 fueled by the Federal Reserve's decision on Wednesday to begin tapering its massive economic stimulus program.

The Commerce Department reported that third-quarter 2013 gross domestic product grew 4.1% year-over-year, a bump higher from a previous reading of 3.6%, and as personal consumption increased 2%. Analysts surveyed by Thomson Reuters expected a 3.6% gain.

"It's an endorsement that the economy is stronger," Randy Frederick, managing director of active trading and derivatives at Charles Schwab, said in a phone interview from Austin, Texas. "The reaction that we got on Wednesday and the follow through [Friday] ... confirms that."

  • The S&P 500 gained 0.49% to 1,818.55, the Dow Jones Industrial Average added 0.26% to 16,221.72 and the Nasdaq climbed 1.15% to 4,104.74.
  • Major indices posted weekly gains as increasing confidence in underlying economic strength was punctuated by the Fed's plan of $10 billion tapering of economic stimulus starting in January.
  • Scorecard for the week: S&P 500 gained 2.44%, the Dow increased 2.96% and the Nasdaq climbed 2.59%.
  • Smartphone maker BlackBerry (BBRY - Get Report) reported a third-quarter net loss of 67 cents a share, compared to analysts' expectations of a loss of 43 cents a share. Revenue of $1.2 billion missed consensus by $460 million. Still, details of a new deal with Foxconn inspired hope the company could turn itself around. Shares surged 15.7% to $7.23.
  • Walgreen (WAG) recorded first-quarter earnings of 7 cents a share, in line with analysts' expectations. Revenue of $18.3 billion was 5.9% higher than the year-ago quarter. Shares popped 3.8% to $59.08.
  • S&P Winner and Loser: Textron  (TXT) surged 14.5% to $37.28, while CarMax  (KMX) tumbled 9.4% to $48.07.
--Written by Andrea Tse, Keris Alison Lahiff and Joe Deaux.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
BBRY $9.45 1.60%
WAG $81.65 2.05%
AAPL $123.22 -0.82%
FB $83.30 0.35%
GOOG $548.13 -1.30%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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