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.

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
ABBV AbbVie Inc. 62.71 0.81 1.31 5,768,006
BAX Baxter International Inc. 43.31 -0.12 -0.28 7,582,534
BMY Bristol-Myers Squibb Co. 71.31 0.58 0.82 3,630,886
CI Cigna Corp 128.82 -0.05 -0.04 980,838
DIS Disney (Walt) Co. (The) 100.29 0.48 0.48 4,589,121
EQR Equity Residential 68.72 -0.02 -0.03 1,165,041
GEVO Gevo Inc. 0.35 0.01 2.09 3,113,941
HCP HCP Inc. 33.04 0.36 1.10 2,098,089
KO Coca-Cola Co (The) 44.78 0.09 0.20 7,893,894
MDT Medtronic PLC 81.69 0.51 0.63 5,326,621
MRK Merck & Co. Inc 56.48 0.09 0.16 7,508,752
ORCL Oracle Corp. 40.07 0.12 0.30 8,240,624
PG Procter & Gamble Co. 81.43 0.21 0.26 4,322,195
PSA Public Storage 255.23 1.09 0.43 373,759
SIRI Sirius XM Radio Inc. 3.96 -0.02 -0.50 22,311,900
VZ Verizon Communications Inc 50.62 0.46 0.92 10,649,467

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