It’s all but certain the US stock market will close the week with a steep decline, but at least stocks manage to arrest their slide on the last trading day thanks to strong economic data.
US wholesale inventories made its largest jump of the year in September, indicating that economic growth in the third quarter might be more robust than initially estimated. The University of Michigan/Thomson Reuters consumer sentiment index also rose to 84.9 in November, a level unseen since July 2007.
Nonetheless, “It’s hard to be enthusiastic buyers with uncertainty out there,” David Kelly, chief market strategist at J.P. Morgan Funds, told MarketWatch
The Dow Jones Industrial Average
(INDEXDJX:.DJI) was up 0.43% to 12,866.31 points as of 12:04 p.m. EST.
(NYSE:BA) was up a healthy 2.35% to $72.64. It was a good week for the aerospace company after its long-delayed 787 finally booked its first flight in revenue service. With a purported 20% improvement in efficiency compared to other aircraft in its class, the 787 could help Boeing in these profit-challenged times.
(NYSE:JPM) also advanced 1.44% to $40.98, with investors approving the bank’s plan to buy back shares. Bank of America
(NYSE:BAC) (+1.38%) and American Express
(NYSE:AXP) (+1.22%), and S&P 500
(INDEXSP:.INX) financials like Goldman Sachs
(NYSE:GS) (+1.89%) were also up on a bullish day for financial stocks. The bellwether Financial Select Sector SPDR ETF
(NYSEARCA:XLF), which tracks all financial stocks in the S&P 500, gained 0.98% to $15.63.
(NYSE:DIS) was the clear loser of the day, tumbling 5.88% to $47.10 after its earnings results. The company reported a 14% profit increase and met earnings expectations, but it warned that current quarter results might be weakened because of increasing sports costs and a drop in home video sales. Earlier today, Janney Capital Markets analyst Tony Wible downgraded Disney to Neutral from Buy, citing a slowdown in advertising growth.
(NYSE:MCD) also continued its slide, dipping 0.72% to $84.52. The fast food industry leader reported its first decline in monthly same-store sales since spring 2003, prompting a 1.99% stock retreat yesterday.
No positions in stocks mentioned.
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