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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stock Market Today: Correction? What Correction? Stocks Post Weekly Gain

Stocks in this article: SPY DIA QQQ KO MNST F SHOO

NEW YORK (TheStreet) -- Wall Street pundits have been crying wolf on a stock market correction for months now, and their cries became louder with Friday's sudden midday pullback. But this wolf still appears to be a long way away. The day's action was nothing more than a sell first, ask questions later situation.

The major U.S. stock markets edged off their worst levels of the day in the final hour of trading Friday and finished the week higher as fears about Russia-Ukraine were balanced by signs that the U.S. economy appears to be on track for a solid, sustained recovery. Bad eurozone economic news has been shrugged off on hopes of more central bank stimulus.

Read More: GoPro Is Still Not Picture-Perfect and Investors Should Be Worried

"Given where we are in economic cycle, these pullbacks are likely to be bought, not sold," said John Canally, market strategist and economist at LPL Financial.

The S&P 500 (SPY) was down 0.01% to 1,955.06, closing the week more than 1% higher. The index is now down about just 1.8% from its July 24 all-time intraday high after last Thursday's relatively shallow pullback of 3.9%. The Dow Jones Industrial Average (DIA) was down 0.3% to 16,662.91, adding 0.66% for the week. The Nasdaq (QQQ) ticked up 0.27% to 4,464.93 to gain over 2% for the week.

Stocks did a sudden about-face midday Friday and wiped out opening gains in reaction to an escalation of conflict in Ukraine. According to Bloomberg, Ukraine said its troops attacked and partially destroyed an armed convoy that had crossed the border from Russian territory. The Ukrainian government troops engaged the vehicles that had arrived overnight through a rebel-held section of the border and Ukrainian soldiers continued to come under shelling, including rounds fired from Russia, according to Bloomberg.

MKM Partners' chief market technician Jonathan Krinsky said after the SPX traded up to 1,964 on Friday, just shy of its July 31st high of 1,965, it had seen a "fierce" rejection, trading back near Thursday's low of 1,947 on very aggressive and emotional selling.

The U.S. manufacturing sector remains healthy, according to latest government figures. Industrial output increased by a strong, more-than-expected 0.4% in July. The Empire State Manufacturing Index slid back in August after a substantial gain in July to a still solid 14.7.

Read More: Coca-Cola Gulps Down Stake in Monster for $2.2B

The August University of Michigan Consumer Sentiment Index came in lower than expected after the stock market's pullback in recent weeks, but is expected by economists to be upgraded in the final August estimate as stock prices have been rallying again and the labor market appears to be expanding.

In Friday's top corporate headlines, Coca-Cola (KO) popped 1.74% to $40.88 and Monster Beverage (MNST) surged 30.48% to $93.49 on the announcement that the world's largest soda-maker is paying $2.2 billion in cash for a 16.7% stake in the energy-drink upstart.

Steve Madden  (SHOO) was ahead by 2.41% to $33.10 after being upgraded at Sterne Agee to buy. Its Dolce Vita purchase should help boost growth, Sterne Agee said.

Ford (F) fell 0.69% to $17.31 after announcing a new 83,250 vehicle recall.

Read More: August 15 Premarket Briefing: 10 Things You Should Know

--By Andrea Tse in New York

Follow @AndreaTTse

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • 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