Updated with closing prices.
Stocks showed staying power this week, with the major indices gaining another 4% and demonstrating resilience despite what one analyst called "every reason" to do otherwise Friday.
The market is showing "considerable strength," says Richard Sparks, senior equities analyst with Schaeffer's investment research. "It's surprising the market is almost refusing to pull back or sell off," he says. "It has every reason to in a sense, given that we've had so many gains in the last two weeks and now some tech companies are disappointing the market, and yet it refuses to go to down -- I'm quite impressed."
Dow Jones Industrial Average
added 4%, the
rose 4.1%, and the
tacked on 4.2% for the week as strong earnings and improved housing data sent the Dow Jones Industrial Average to its highest point for the year.
From a technical perspective, the S&P 500 surpassed a prior resistance point of 950 last week, and went on to add to that this week, "and that's been impressive as well," says Sparks.
On Friday, the Dow rose 23.95 points, or 0.3%, to 9093.24, while the S&P 500 added 2.97 points, or 0.3%, to 979.26. The Nasdaq, however, closed down 7.64, or 0.4%, at 1965.96, after twelve consecutive positive sessions, the most since 1992.
was weighing on the market Friday after it disappointed with its earnings late Thursday and said the rest of the year
. Shares fell 8.3% to $23.45.
were also 7.9% lower at $86.49 after it posted in-line profit on slightly lower-than-expected revenue. The Internet retailer did say it
at or above the high end of Wall Street estimates.
(Click below to listen to senior tech writer Scott Moritz break down Microsoft and Amazon earnings.)
One bright spot,
reported a narrower-than-expected
and said it would have been profitable if not for repaying the bailout fund. Shares tacked on 8.1% to $30.07.
Meanwhile, credit card company
said its credit book continued to deteriorate in the second quarter but
it expected. Shares edged up 0.2% to $29.51.
In other news, Warren Buffett said in an interview with
early Friday that American business is still flat, but predicted the market will recover before the economy. Even with the Dow surpassing 9,000, he believes equities still have steam to outperform cash investments over the long term.
Wall Street looked for more clues to the changing psyche of the consumer from the university of Michigan revised sentiment reading for July. The revised sentiment index was at 66, up 1.4 points from the earlier reading and about 1 point better than expected. Although it's still down from a reading of 70.8 in June.
Economic optimism has pushed crude oil futures higher this week, topping the $67 a barrel. Futures were rose 89 cents, to $68.05 a barrel.
continued to make headlines. The struggling small business lender
to buy parts of the troubled commercial lender from
but turned them down because the price was too low,
The Wall Street Journal
reports. The lender has indentified about half a dozen interested parties for its rail car business, which it put on and off the market last year, according to
CIT shares rose 1.4% to 75 cents.
Stocks overseas were mixed. In Europe, London's FTSE 100 was up 0.1%, while the DAX in Frankfurt edged down 0.7%. In Asia, the Nikkei in Japan rose 1.6%, and the Hang Seng in Hong Kong gained 0.8%.
Longer-dated Treasuries were falling in price, rising in yield. The 10-year was down 4/32 to yield 3.67%, while the 30-year lost 4/32, yielding 4.56%.