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

Final Hour: Spending Setback Worries Dow, Nasdaq as S&P Shrugs

NEW YORK (TheStreet) -- Weak consumer spending and sentiment threw cold water on markets Friday, though the S&P held tentative gains, while the Dow tried, but failed, to follow.

As the machine that powers 70% of the U.S. economy, consumer spending is closely watched by investors. Spending fell in April for the first time in a year after March's pop, while personal income gains were modest. Rounding out the trifecta, consumer sentiment was worse than expected.

Yep, we were happy to let poor Q1 GDP slide Thursday, but data suggesting we won't get a big bounce in Q2 is a worry. That's a big part of what we're rallying on: "the economy, stupid."

The usual suspects underperformed -- small caps and tech were in the red, with Twitter (TWTR) off 4.53% while Amazon (AMZN - Get Report) and Facebook (FB) were both down more than 1.5% in afternoon trade.

Yet those who "sold in May" would have foregone modest gains of nearly 2% for the month, as the bulls still tenaciously hold sway. There were more S&P record highs this week on positive economic data -- but caution pervades the options market, where bets on future gains are fast vanishing.

It's all about the ECB next week, with bond markets taking Draghi at his word that the stimulus toolkit will be used. And U.S. markets should react positively in the counterintuitive fashion that says, "Europe's economy is in trouble, so they're bolstering liquidity. And stocks are more attractive when rates are low and cash is looking for a home, so the party isn't over... ignore that low inflation..."

--- By Jane Searle in New York

Fragile Five Pose Renewed Opportunity

How to Profit From European Stimulus Expectations

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
AMZN $673.95 2.25%
AAPL $92.69 -0.59%
FB $119.49 1.43%
GOOG $711.11 1.40%
TSLA $214.93 1.61%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs