After a big rally on Thursday, the stock market added to its
recent gains on Friday.
Although the Dow barely finished in positive territory, both
the S&P and Nasdaq recorded solid advances. Next week,
investors will be focusing on corporate earnings.
On Friday, both Wells Fargo (NYSE:
) and JPMorgan (NYSE:
) released their quarterly results and hundreds of other
prominent companies will be reporting in the coming weeks.
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The market appears to be on solid footing heading into
earnings season as investor concern over Fed tightening has
subsided after comments made by Chairman Ben Bernanke on
Wednesday. The S&P 500 recorded a very solid trading week,
with the index gaining nearly 3 percent over the last 5 trading
sessions and closing at a new all-time high on Friday.
The Dow Jones Industrial Average added a little more than 3
points, or 0.02 percent, to close at 15,464.
The S&P 500 rose 5 points, or 0.31 percent, to 1,680.
The Nasdaq climbed 22 points, or 0.61 percent, to 3,600.
Producer prices recorded their largest rise since September
2012 in June on the back of rising energy costs. PPI rose 0.8
percent for the month compared to a gain of 0.5 percent for May.
This was well above consensus estimates calling for an increase
of 0.3 percent.
On a core basis, which excludes volatile food and energy
prices, PPI rose 0.2 percent in June after increasing 0.1 percent
for May. The consensus expected prices to rise by 0.1
University of Michigan Consumer Sentiment
The preliminary reading of the University of Michigan Consumer
Sentiment Index came in at 83.9 for July compared to 84.1 in
June. This compared to consensus estimates calling for the index
to increase to 85.0.
Crude oil continued its
on Friday. At last check, NYMEX crude futures rose 1.20 percent
to $106.17. Brent crude contracts climbed 1.24 percent to
$109.07. Natural gas added 0.80 percent on the day to $3.64.
Precious metals were mixed on the session with gold rising and
silver prices falling. Near the close, COMEX Gold futures were up
0.30 percent to $1,283.70. Silver contracts traded down 0.43
percent to $19.87. Copper fell 0.63 percent on the day to
The grains complex was largely lower on Friday. Corn futures
were last down 3.37 percent while wheat lost 0.29 percent. In
soft commodities, coffee fell 3.24 percent while orange juice
concentrate rose almost 3 percent on the day.
Bond prices fell on Friday. At last check, the iShares
Barclays 20+ Year Treasury Bond ETF (NYSE:
) was down 0.23 percent to $107.57.
Yields were as follows on Friday afternoon: The 2-Year Note
was yielding 0.35 percent. The 5-Year Note yield was 1.43
percent. The 10-Year Note and 30-Year Bond yields were at 2.59
percent and 3.65 percent, respectively.
The U.S. Dollar made back some of its losses from Thursday on
Friday. The PowerShares DB US Dollar Index Bullish ETF (NYSE:
), which tracks the performance of the greenback versus a basket
of foreign currencies, added 0.22 percent to $22.47.
The closely watched EUR/USD pair fell 0.27 percent on the
session. Other movers included the British Pound and the
Australian Dollar. The GBP/USD pair fell 0.59 percent while the
Aussie Dollar lost 1.28 percent against the greenback.
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Volatility and Volume
The VIX fell 1.28 percent to 13.83 on Friday. The widely
watched barometer of volatility expectations has been trending
lower over the last couple of weeks as the market has bounced
back to new highs.
Volume was lighter than normal on the day. Around 98 million
SPDR S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average of
) jumped more than 25 percent on the session after the company
lifted its second-quarter and full-year guidance.
) rose around 20 percent on Friday after the company announced it
has entered into an agreement with Clinical Holdings, a physician
services business operating under Ascension Health Alliance.
Shares of Alnylam Pharmaceuticals (NASDAQ:
) rallied for the second day in a row after announcing positive
results from a Phase I drug trial. The stock closed up 15
Spreadtrum Communications (NASDAQ:
) climbed a little less than 13 percent after agreeing to be
acquired by Tsinghua Holdings for $1.8 billion.
Quality Systems (NASDAQ:
) rose roughly 12 percent on the day after the stock was upgraded
to Outperform by Robert W. Baird. The firm cited activist
investor Clinton Group's stake in the company as a potential
) fell around 5 percent in the middle of the day after one of its
Dreamliner aircraft caught fire on the tarmac at Heathrow
) fell around 6 percent on Friday after the company cut its
full-year outlook, citing a slowing U.S. industrial economy.
) fell more than 2 percent after cutting its revenue forecast for
the fiscal second-quarter.
) lost a little less than 5 percent on the session after
Oppenheimer downgraded the stock to Perform and pulled its $85
price target. The Wall Street Journal also reported that
investors are concerned about the company's upcoming Q2
The Medicines Company (NASDAQ:
) lost around 7 percent on the day after receiving a negative
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