Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Wall Street posts first weekly loss since mid-April on Fed angst

05/24/2013 | 04:37pm US/Eastern

The S&P 500 declined for a third day on Friday, with the three major stock indexes posting their first negative week since mid-April on lingering concern that the central bank may scale back its stimulus measures to support the economy.

Still, the indexes closed well off their lows in light volume ahead of the three-day Memorial Day holiday weekend.

The Dow ended slightly higher, outperforming the broader market, buoyed by a 4 percent gain in Procter & Gamble (>> The Procter & Gamble Company).

A jump in April orders for long-lasting manufactured goods, such as refrigerators and toasters, showed that the U.S. economy may be stronger than some had thought.

"A day like today is clear evidence that there is still money on the sideline to get into equities, (and investors are) looking for almost any excuse to get in," said Tim Ghriskey, chief investment officer of Solaris Asset Mangment in Bedford Hills, New York.

"This has been happening all week. Investors are taking advantage of down days to put more cash to work, especially when the decline is not based on something fundamental."

Trading has been choppy in the second half of the week as market participants assess the Federal Reserve's evolving stance toward markets. The Fed's stimulus measures have been instrumental in a rally that has driven U.S. stocks to record highs this year.

Even as there is some fear that the Fed will exit too soon, many analysts say the eventual tapering of the central bank's stimulus will come with an expansion of the economy and corporate earnings, which will continue to support equities.

Joe Bell, a senior equity analyst at Schaeffer's Investment Research in Cincinnati, said many people had been giving only "the Fed credit for this rally" and had "not been talking about some of the improvement in the labor market or housing data.

"The economy in general has been on a lot better footing than perhaps people have given it credit for," Bell said.

The Dow Jones industrial average <.DJI> gained 8.60 points, or 0.06 percent, to 15,303.10 at the close. The Standard & Poor's 500 Index <.SPX> edged down only 0.91 of a point, or 0.06 percent, to finish at 1,649.60. The Nasdaq Composite Index <.IXIC> dipped 0.27 of a point, or 0.01 percent, to close at 3,459.14.

For the week, the Dow fell 0.3 percent, while the S&P 500 and the Nasdaq each dropped 1.1 percent. The S&P 500 had traded below its 14-day moving average - 1,647.91 - during the day but closed just couple of points above the level.

Procter & Gamble (>> The Procter & Gamble Company) shares rose 4 percent to close at $81.88 after the world's largest household products maker brought back A.G. Lafley as chief executive Thursday, replacing Bob McDonald in the midst of a major restructuring.

Tesla Motors (>> Tesla Motors Inc) rose to a fresh 52-week high on Friday as short interest fell, suggesting another bout of short-covering in the electric car maker's shares.

Tesla jumped 4.7 percent to $97.08 after rising as high as $97.95. At the same time, shares borrowed as a percentage of outstanding shares fell to 12.3 percent as of Thursday, according to data from Markit. That's well off a level of more than 20 percent that was seen just a few weeks ago.

A wave of short-covering earlier in the month drove huge gains in Tesla. The stock's price has more than doubled since the beginning of April.

Abercrombie & Fitch (>> Abercrombie & Fitch Co.) was among the S&P 500's biggest losers after the teen clothing retailer cut its profit forecast and said quarterly comparable sales fell 15 percent, which it blamed in part on inventory shortages. Its stock lost 8 percent to $50.02.

Shares of Sears Holdings (>> Sears Holdings Corp) plummeted 13.6 percent to $50.25 after the U.S. retailer reported a bigger-than-expected quarterly loss on Thursday. Sears said cooler spring weather hurt its results.

Overall, the U.S. stock market's pullbacks have been short and shallow since November as traders have taken any weakness as an opportunity to increase long positions.

Since Wednesday, the markets have been focused on the possibility that the Fed's $85 billion per month in bond purchases will be scaled back later this year, in the wake of recent congressional testimony by Fed Chairman Ben Bernanke and the minutes from the Federal Open Market Committee's latest meeting.

The minutes showed a degree of fracture among the FOMC's members "in terms of the approach moving forward, specifically the time frame" of the unwinding of the Fed's stimulus efforts, said Peter Kenny, chief market strategist at Knight Capital in Jersey City, New Jersey.

Durable goods orders rose 3.3 percent in April, exceeding expectations for an increase of 1.5 percent. The data suggested that a sharp slowdown in factory output could soon run its course.

Volume was roughly 5.2 billion shares on the New York Stock Exchange, the Nasdaq and the NYSE MKT, lower than the year-to-date average daily closing volume of about 6.4 billion.

On the NYSE, decliners beat advancers by a ratio of 16 to 13. On the Nasdaq, the opposite trend prevailed, with 13 stocks rising for about every 12 that fell.

(Editing by Jan Paschal)

By Angela Moon

React to this article
Latest news
Date Title
09:53a ASCIANO : Jackets fall at buzzer in Drago opener
09:37a DP WORLD : SCA signs deal with DP World for Ain Sokhna sea port development
09:32a SAMIR : Egyptian military helicopter crashes due to technical failure
09:26a LEWIS PHP 7HPF 7 1/2% CUM PRF STK #1 : In the land of Scrooge, a soft spot for Christmas ads
09:23a AGC NETWORKS : Sound thinking at heart of Dubai's Smart City philosophy
09:23a Statement by the Prime Minister of Canada on Holodomor Memorial Day
09:17a WESTFIELD : Village at Westfield Topanga gets its first Black Friday, and still has some free parking
08:49a ENERGY TRANSFER PARTNERS : Bakken pipeline hearing questions environmental impact of project
08:41a Prime Minister Announces Funding to Increase Opportunities for Youth In Africa
08:34a MICROSOFT : How to Turn on Windows 10's Find My Device Feature
Latest news
Hot News 
OPPORTUNITY INVEST MGMT : 27 november 2015 - Announcement AGM on 22 december 2015
ATLANTIS RESOURCES : Tidal generating firm announces long partnership for investment by Gordon Calder
CYTOTOOLS : berichtet über Ergebnisse der europäischen klinischen Studie Phase III: Resultate der Behandlung des diabetischen Fußes mit DermaPro(R) bestätigen nicht die Ergebnisse der vorangegangenen Studien (DGAP News)
STOCK SPIRITS : Further Downgrades Earnings Guidance For 2015
IMAGINATION TECHNOLOGIES : Sir Hossein Yassaie receives 2015 Lifetime Achievement Award in annual Elektra European Electronics Industry Award...
Most Read News
11/27 RESEARCH AND MARKETS : Rotavirus Infections Therapeutic Development - Pipeline Review & Analysis, H2 2015
04:51a NIOC NATIONAL IRANIAN OIL : Iran’s Largest Oil Investement Event Opens
03:55a EUROPEAN COMMISSION : Antitrust: new Commission Guidelines on joint selling of olive oil, beef and veal, and arable crops
11/27 RESEARCH AND MARKETS : Acute Renal Failure (ARF) (Acute Kidney Injury) - Pipeline Review & Analysis, H2 2015
07:37a NIOC NATIONAL IRANIAN OIL : Iranian Oil Minister: IPC model Guarantees win-win Conditions
Most recommended articles
05:45aDJWill Black Friday Deals Give a Boost to Car Sales?
02:48aDJBrazil Plans Suit On Dam Breach, Toxins In River
02:48aDJToshiba Mulls Sale Of Chip-Unit Stake
02:47aDJBofA Executive Leaves Firm
12:26a CHINA CHENGTONG DEVELOPMENT : South Africa firms sign $930 million in deals ahead of Xi trip: Xinhua