Stocks Close in the Red For the Week on Fears of Fed Exit

Michael Teague  |

By Friday’s close, Wall Street showed itself unable to muster the enthusiasm necessary to recover from the Federal Reserve’s hints this week that Quantitative Easing may be pulled back sooner than expected.

Stocks ended mostly on slight losses, making for the first losing week in over a month, even though Friday brought with it positive economic data in the form of an increase in durable goods orders in the month of April. The commerce department cited a 3.3 percent gain for last month, more than doubling on analysts’ expectations of a 1.4 percent increase.

While orders increased more or less across all categories, the biggest jumps were taken by cars, airplanes, and military goods.

While the Federal Reserve continues to maintain that any cut-backs in its fiscal stimulus program are dependent upon specific improvements in the economy, it seemed this week as though less QE could be the order of the day sooner rather than later. Both the release of the minutes from the latest FOMC meeting, along with Ben Bernanke’s appearance before congress on Wednesday seemed to indicate that a lessening of the Fed’s bond and asset-purchasing program could begin sometime this summer.

The S&P 500 closed on losses for the third consecutive day, down a slight 0.06 percent to 1,649.60 points. Dean Foods Company (DF), lost half of its share price throughout the day, down 50.5 percent to $10.10 in the wake of the company’s spinning off of the WhiteWave Foods Company (WWAV).

Electronics and video game retailers GameStop Corp (GME) lost 10.8 percent to close at $32.11, while Abercrombie & Fitch (ANF) ended a terrible week of public relations down 8 percent to $50 per share.

The index was helped immensely by Procter & Gamble (PG), however, up 4 percent to $81.88 on high volume.

The Dow gained a slight 0.06 percent, to close at 15,393.10 points. Procter & Gamble, who announced that they were bringing back former CEO A.G. Lafley to replace the current played a significant role in this as well, but was followed by Wal-Mart (WMT), up 1.28 percent to $77.31.

Hewlett-Packard closed at a 2.6 percent loss, to $24.21 as the enthusiasm resulting from yesterday’s surprisingly good earnings report did carry shares through the day.

The Nasdaq also dropped a slight 0.06 point to close at 3,459.14, led by Sears Holdings Corporation (SHLD), down 13.62 percent to $50.25 after the company’s bleak earnings report showed big declines in sales. Facebook (FB) was down almost 3 percent, with shares closing at $24.31, perhaps the result of news indicating that the company’s attempt to purchase mobile mapping software company Waze Inc. may soon be complicated by a counter offer from Google (GOOG).

Cirrus Logic Inc. (CRUS) was down 2.25 percent to close at $17.36, while Real Goods Solar (RSOL) dropped 5.42 percent to $4 per share.

Meanwhile, Tesla Motors (TSLA) continued its strong recent performance with a 4.7 advance to $97.08, and Baidu Inc (BIDU) gained 2.73 percent to $96.45 per share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Companies

Symbol Name Price Change % Volume
PG Procter & Gamble Company (The) 125.47 0.90 0.72 5,471,590 Trade
BIDU Baidu Inc. 119.14 -1.40 -1.16 4,256,324 Trade
TSLA Tesla Inc. 358.39 -1.29 -0.36 6,574,281 Trade
FB Facebook Inc. 194.11 -2.64 -1.34 18,806,020 Trade
DF DFODQ Dean Foods n/a n/a n/a 0 Trade
WWAV Whitewave Foods Company (The) n/a n/a n/a 0 Trade
SHLD SHLDQ Sears Holdings Corporation n/a n/a n/a 0
CRUS Cirrus Logic Inc. 76.94 0.38 0.50 344,543 Trade
GOOG Alphabet Inc. 1,347.83 -2.44 -0.18 1,550,028 Trade
GME Gamestop Corporation 5.45 -0.13 -2.33 5,439,083 Trade
RSOL Real Goods Solar Inc n/a n/a n/a 0 Trade
ANF Abercrombie & Fitch Company 16.76 -0.58 -3.34 2,725,556 Trade
NTAP NetApp Inc. 63.24 0.51 0.81 2,444,801 Trade
WMT Walmart Inc. 120.29 0.53 0.44 5,366,541 Trade

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Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

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