Stocks Post a Solid Week - TheStreet

Stocks Post a Solid Week

Each of the major indices finish the week up at least 4%.
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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."

The

Dow Jones Industrial Average

added 4%, the

S&P 500

rose 4.1%, and the

Nasdaq Composite

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.

Microsoft

(MSFT) - Get Report

was weighing on the market Friday after it disappointed with its earnings late Thursday and said the rest of the year

isn't likely to be much better

. Shares fell 8.3% to $23.45.

Shares of

Amazon

(AMZN) - Get Report

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

expects third-quarter sales

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,

Capital One

(COF) - Get Report

reported a narrower-than-expected

second-quarter loss

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

American Express

(AXP) - Get Report

said its credit book continued to deteriorate in the second quarter but

not to the extent

it expected. Shares edged up 0.2% to $29.51.

In other news, Warren Buffett said in an interview with

CNBC

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.

Meanwhile,

CIT Group

(CIT) - Get Report

continued to make headlines. The struggling small business lender

received bids

to buy parts of the troubled commercial lender from

Berkshire Hathaway

(BRK.A) - Get Report

and

Leucadia National

(LUK)

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

Bloomberg.

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%.