Preliminary second quarter GDP came in at 1.0% down from the Advanced reading of 1.3%. The University of Michigan Consumer Sentiment for August came in below estimates at 55.7. The theme from Fed Chief Bernanke’s Jackson Hole speech is that the recovery from the economic crisis is much less robust than hoped. He offered no specific new initiatives and US stocks got hit hard. Stocks recovered into the green on the hopes that the FOMC will offer more stimulus in September.

The Dow Jones Industrial Average traded down to 11,025.70 while investors waited for comments from Fed Chief Bernanke. After the headlines were read at 10:00 AM the Dow fell to morning low at 10,929.20. This was followed by a strong recovery as the Dow rose to a Day’s high at 11,326.43. The Dow consolidated this volatility in the last hour of trading. The NASDAQ traded down to 2400.26 prior to Bernanke’s Jackson Hole speech then slumped to 2385.27 after the reading of the headlines. Upon learning the details of the speech and possible stimulus in September, the NASDAQ rebounded to a day’s high at 2486.04, then consolidated into the final hour of trading.

Asian stocks were mixed on Friday with the Nikkei 225 up 0.29% to 8,798 and the Hang Seng slipping by 0.86% to 19,583. European stocks began the day trading lower but rebounded along with US stocks into their session closes. The FTSE 100 rebounded to the flat line slipping just 0.02% to 5,130; the DAX stayed in the red down 0.84% to 5,537 and the CAC 40 also stayed in the red down 1.01% to 3,088. The yield on the 10-Year US Treasury note declined from 2.282 to 2.118 on a return to a modest flight to quality. Gold continued to recover from Thursday’s low at $1705.4 the Troy ounce trading as high as $1798.0 on Friday morning. After a dip to $1767.9 gold rebounded the $1816.7 into the final hour of trading. Crude oil traded down from $85.44 per barrel to $82.95 below the 200-week simple moving average at $83.89 then rallied back to a new day’s high at $85.64. The euro versus the US dollar traded down from 1.4451 to 1.4333 then up to 1.4500.

Energy

Resolute Energy (REN) is rolled out with an Outperform and $19 price objective at Morgan Keegan. First Solar (FSLR) is now Buy from Neutral at Collins Stewart with a price target of $132. BHP Billiton (BHP) is now a Buy from Neutral at Natxis. In afternoon trading: Shares of Hercules Offshore (HERO) are up about 15.5%. Shares of Denison Mines (DNN) are up about 8.5%. Shares of Treaty Energy (TECO) are down about 10.5%.

Energy Select Sector SPDR (XLE) was trading at $65.81 at 4:00 PM on Friday, up 1.94% on the day – down 3.58% year-to-date.

Materials

In afternoon trading: Shares of Taseko Mines (TGB) are up about 21.5%. Shares of Zagg Inc. (ZAGG) are up about 6.5%. Shares of NovaGold Resources (NG) are up about 6%. Shares of Golden Star Resources (GSS) are up about 5.5%. Shares of Celanese (CE) are up about 5.75%. Shares of Temple-Inland (TIN) are up about 5.25%. Shares of Mosaic (MOS) are up about 5%. Shares of New Gold (NGD) are up about 5%.

The Materials Select Sector SPDR (XLB) was trading at $33.93 at 4:00 PM on Friday, up 2.11% on the day – down 11.66% year-to-date.

Industrials

Nearly three years behind schedule and several billion dollars over budget, Boeing’s (BA) 787 Dreamliner airplane is due to today receive operating certification from the FAA. Boeing has 827 orders for the jet, whose light-weight carbon-composites airframe is designed to help lower fuel costs for airlines. Watsco (WSO) is upgraded to Buy from Hold at KeyBanc Capital. In afternoon trading: Shares of Harbin Electric (HRBN) are down about 10.5%. Shares of United Rentals (URI) are up about 8.5%. Shares of KBR Inc. (KBR) are up about 6.5%. Shares of Manitowoc (MTW) are up about 5.5%. Shares of Ingersoll-Rand (IR) are up about 5.5%.

The Industrial Select Sector SPDR (XLI) was trading at $30.93 at 4:00 PM on Friday, up 2.08% on the day – down 11.30% year-to-date.

Consumer Discretionary

Tiffany (TIF) beat estimates by 17 cents and revenue by $87M, and raised FY11 EPS guidance to $3.65-3.75 from an earlier $3.45-3.55. Pandora Media (P) beat estimates by 5 cents and revenue by $7M, expects FQ3 Revenue of $69.5M-$72.5M (vs. consensus of $68.2M), EPS of $(0.02)-$(0.00) (vs. consensus of $(0.01)), and expects FY12 Revenue of $270M-$275M and EPS of $(0.05)-$(0.07). Krispy Kreme Doughnuts (KKD) beat estimates by 6 cents and revenue by $6M. Peugeot Citroen (PEUGY) is reduced to Neutral from Buy downgrade at UBS. In afternoon trading: Shares of Brown Shoe Company (BWS) are up about 13.5%. Shares of Under Armour (UA) are up about 12%. Shares of Krispy Kreme are up about 10%. Shares of Pandora are up about 8%. Shares of Tiffany are up about 7.75%. Shares of Standard Pacific (SPF) are up about 7%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $36.12 at 4:00 PM on Friday, up 2.09% on the day – down 3.45% year-to-date.

Consumer Staples

TreeHouse Foods (THS) is a new Outperform at Wells Fargo. Koninklijke Ahold (AHONY) is lifted to Buy from Hold at Citigroup. In afternoon trading: Shares of Star Scientific (CIGX) are down about 39% after losing a bid for a new trial in its decade-long effort to extract patent royalties from Reynolds American Inc. (RAI) on way to reduce carcinogens in cigarettes. Shares of Imperial Sugar (IPSU) are up about 9.25%. Shares of Yuhe International (YUII) are up about 7.75%. Shares of Supervalue (SVU) are up about 6%. Shares of Green Mountain Coffee Roasters (GMCR) are up about 5%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $30.17 at 4:00 PM on Friday, up 0.85% on the day – up 2.93% year-to-date.

Healthcare

Affymetrix (AFFX) is a new Outperform at Mizuho. Echo Therapeutics (ECTE) is picked up as a Buy at Stifel Nicolaus. Sequenom (SQNM) is a new Outperform at Brokerage William Blair. Regeneron Pharmaceuticals (REGN) is reduced to Hold from Buy at Citigroup. In afternoon trading: Shares of Complete Genomics (GNOM) are up about 9.5%. Shares of StemCells (STEM) are up about 7%. Shares of Seattle Genetics (SGEN) are up about 6.75%. Shares of Healthways (HWAY) are up about 6.25%. Shares of Santarus (SNTS) are up about 6.25%.

The Health Care Select Sector SPDR (XLV) was trading at $32.24 at 4:00 PM on Friday, up 1.26% on the day – up 2.35% year-to-date.

Financials

The Treasury recouped $900M in the first half from the sale of stocks in financial firms, nearly a third of which came from the divestment of Citigroup (C) shares. Jefferies begins Waddell & Reed (WDR) and Janus Capital (JNS) with Buys on both, and has a Hold on BlackRock (BLK). In afternoon trading: Shares of Radian Group (RDN) are up about 7.5%. Shares of The PMI Group (PMI) are up about 7%. Shares of Caplease (LSE) are up about 6.25%. Shares of Wisdom Tree Investments (WETF) are up about 5%. Shares of MGIC Investment (MTG) are up about 5%.

The Financial Select Sector SPDR (XLF) was trading at $12.77 at 4:00 PM on Friday, up 0.87% on the day – down 19.94% year-to-date.

Information Technology

As Tim Cook settles into his new job, Apple (AAPL) is reportedly preparing another assault on one of its greatest unconquered territories – television. Magma Design (LAVA) reported FQ1 EPS of $0.07 (in line), while missing revenues by $1M, and guided revenue to the low-end of FY12. OmniVision Technologies (OVTI) beat estimates by 5 cents with revenue in-line with estimates, and expects Q2 revenue of $255M-$275M (vs. consensus of $306M) and EPS of $0.52-$0.64 (vs. consensus of $0.82). MICROS Systems (MCRS) beat estimates by 9 cents and revenue by $3M, and reaffirmed FY12 guidance. Aruba Networks (ARUN) reported FQ4 EPS of $0.17 (in-line), while beating revenue by $5. Broadcom (BRCM) is a fresh Buy at ThinkEquity. SuccessFactors (SFSF) is picked up as an Overweight at Piper Jaffray. Research In Motion (RIMM) is moved to Buy from Neutral at Sterne Agee. VMware (VMW) gets an Outperform-from-Sector Perform increase at Pacific Crest. Aruba Networks (ARUN) is moved to Market Perform from Underperform at BMO Capital Markets. Baidu, Inc. (BIDU) is boosted to Neutral from Underperform at Credit Suisse with a new price target of $135.50. In afternoon trading: Shares of Omnivision are down about 31%. Shares of Magma Design are down about 22.25%. Shares of Aruba Networks are up about 19%. Shares of MICROS Systems are up about 11.5%.

The Technology Select Sector SPDR (XLK) was trading at $23.80 at 4:00 PM on Friday, up 1.97% on the day – down 5.52% year-to-date.

Telecommunications Services

In afternoon trading: Shares of Clearwire (CLWR) are down about 8.75%. Shares of TerreStar (TSTRQ) are down about 6.75%. Shares of Cogent Communications (CCOI) are up about 5%. Actives: Shares of Sprint Nextel (S) are up about a quarter of a percent. Shares of AT&T (T) are down about a half of a percent. Shares of Verizon (VZ) are down about a quarter of a percent. Shares of Level 3 Communications (LVLT) are up about 1.2%.

The NASDAQ Telecommunications Index (IXTC) was trading at $185.10 at 4:00 PM on Friday, up 2.83% on the day – down 17.87% year-to-date.

Utilities

In afternoon trading: Actives: Shares of Duke Energy (DUK) are down about a half of a percent. Shares of Genon Energy (GEN) are up about 1.8%. Shares of Exelon (EXC) are down about 1.1%. Shares of Southern (SO) are down about a half of a percent. Shares of AES Corp (AES) are up about 1%. Shares of Xcel Energy (XEL) are down about 0.7%. Shares of CenterPoint Energy (CNP) are up about 1%.

The Utilities Select Sector SPDR (XLU) was trading at $33.00 at 4:00 PM on Friday, down slightly on the day – up 5.30% year-to-date.

STOCKS: REN, FSLR, BHP, HERO, DNN, TECO, TGB, ZAGG, NG, GSS, CE, TIN, MOS, NGD, BA, MSO, HRBN, URI, KRB, MTW, IR, TIF, P, KKD, PEUGY, BWS, UA, SPF, THS, AHONY, CIGX, RAI, IPSU, YUII, SVU, GMCR, AFFX, ECTE, SQNM, REGN, GNOM, STEM, SGEN, HWAY, SNTS, C, WDR, JNS, BLK, RDN, PMI, LSE, ETF, MTG, AAPL, LAVA, OVTI, MCRS, ARUN, BRCM, SFSF, RIMM, VMW, ARUN, BIDU, CLWR, TSTRQ, CCOI, S, T, VZ, LVLT, DUK, GEN, EXC, SO, AES, XEL, CNP