Wall Street Scrapes Its Way Out Of The Red To End A Brutal Week

Michael Teague  |

After the worst day for stocks since November of 2011, Wall Street bounced back slightly on Friday to end a week that was dominated by concern about the future of the Federal Reserve’s fiscal stimulus program following Chairman Ben Bernanke’s statement on Wednesday that the central bank was planning on cutting back on quantitative easing as soon as the end of the year.

After a 2.5 percent drop on Thursday, the S&P 500 was up 0.27 percent to close the week at 1,592.43 points, while the Dow ended the day at 14,799.40 on an advance of 0.28 percent. The Nasdaq was not quite so lucky, dropping 0.22 percent to close out trading at 3,357.25 points.

While there wasn’t much economic data to give markets significant upward momentum, investors were able to hold on to a small crumb of reassurance from St. Louis Fed Reserve President James Bullard, who emerged to publicly criticize the Federal Open Market Committee’s decision to allow Bernanke to give a “more elaborate” timeline for slowing down the Fed’s $85 billion-per month in asset purchases. Economists are now forecasting the pace of purchases to be reduced to $65 billion per month by September, while the Chairman in his press conference on Wednesday said that the third round of quantitative easing would be wrapped up by mid-2014.

The S&P 500 got a great deal of support from REITs, with significant gains for Equity Residential (EQR), HCP Inc. (HCP), Avalonbay Communities Inc. (AVB), and Public Storage (PSA), all of whom advanced over 2.5 percent. Healthcare stocks enjoyed a good day as well, with drug manufacturer AbbVie Inc (ABBV), Baxter International Inc. (BAX), Cigna Corp. (CI), Bristol-Myers Squibb Company (BMY) and Medtronic Inc. (MDT) all gaining over 2.5 percent as well.

On the Dow edged up on advances of over one percent for Procter & Gamble (PG), Coca-Cola (KO), Merck & Co. (MRK), Walt Disney (DIS), and Verizon Communications (VZ). Meanwhile, the Nasdaq was held back by big losses for SIRIUS XM radio (SIRI) and Oracle Corp. (ORCL) who dropped over 9 percent on high volume after releasing its earnings report earlier in the day and announcing that it was transferring its listing from the Nasdaq to the New York Stock Exchange.

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Symbol Name Price Change % Volume
CI Cigna Corporation 206.08 -0.03 -0.01 2,017,949 Trade
ORCL Oracle Corporation 46.67 0.67 1.46 26,375,542 Trade
PG Procter & Gamble Company (The) 93.03 0.58 0.63 9,308,426 Trade
BAX Baxter International Inc. 65.48 0.46 0.71 4,465,142 Trade
HCP HCP Inc. 29.80 -0.07 -0.23 3,239,956 Trade
DIS The Walt Disney Company 111.86 -0.12 -0.11 7,338,177 Trade
EQR Equity Residential of Beneficial Interest 71.51 -0.16 -0.22 1,795,453 Trade
VZ Verizon Communications Inc. 58.27 0.59 1.02 16,615,720 Trade
ABBV AbbVie Inc. 87.61 0.65 0.75 5,230,123 Trade
MDT Medtronic plc. 95.48 1.24 1.32 5,092,575 Trade
PSA Public Storage 211.94 -0.20 -0.09 774,626 Trade
BMY Bristol-Myers Squibb Company 52.58 -0.50 -0.94 8,036,982 Trade
SIRI Sirius XM Holdings Inc. 6.20 -0.02 -0.32 27,688,732 Trade
MRK Merck & Company Inc. (new) 77.42 0.70 0.91 15,425,403 Trade
KO Coca-Cola Company (The) 49.24 0.15 0.31 12,335,306 Trade
GEVO Gevo Inc. 2.58 -0.12 -4.44 86,549 Trade


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