Stocks backed off their multi-year highs on Monday, with no substantial economic news either positive or negative. On Tuesday the Dow earned back its Monday’s loss as some investors began banking on the idea that the Fed would introduce additional quantitative easing in the near future. The markets inched up a bit on Wednesday, once again setting a five year high for the Dow. On Thursday, the long-awaited quantitative easing was announced, with the Fed pledging to buy $40 billion in mortgage-backed securities per month. Such an action is expected to drive investors out of bonds and back into stocks. Stocks responded to the move by moving up well over a percent. The major indexes finished the week on Friday by tacking on additional gains as euphoria from the quantitative easing was still present. Once again, the Dow set a multi-year high.
[table id=80 /]

Following the Labor Day holiday on Monday, a poor manufacturing report sent stocks to a modest loss on Tuesday. The major indexes changed very little on Wednesday, a bit surprising considering that bellwether FedEx lowered its earnings forecast and more dire news came out of the Eurozone. On Thursday the Dow soared by 244 points when the European Central Bank announced it will buy government bonds to allow struggling countries to issue new debt. The S&P 500 and NASDAQ set 4-year and 11-year highs, respectively. Stocks finished the week on Friday slightly higher despite a rather bleak August jobs report.
[table id=79 /]

Several mergers, including Hertz Rental buyout of Dollar Thrifty failed to excite investors, as prices were largely stagnant on Monday. The markets were also unaffected by Apple’s $1 billion lawsuit settlement over Samsung concerning a patent dispute. On Tuesday the major indexes once again finished mixed. A rise in June US home prices was offset by a drop in consumer confidence. A revised upward estimate on the second quarter GDP and a report outlining an increase in July US home sales failed to spark stocks on Wednesday, as small deviations from the unchanged mark have become much more common than in the recent turbulent past. The relative calmness of the market was shattered on Thursday with the Dow experiencing a 100 point drop. The downturn was triggered by a drop in a Eurozone economic sentiment reading. On Friday, stocks gained back most of their previous day’s losses when Fed Chair Bernanke provided yet another assurance that the central bank will step into provide support if the economy begins to head south.
[table id=78 /]

It was a listless Monday with the major indexes finishing with a very slight loss, as there was little news to propel the markets in either direction. On Tuesday, early day gains could not be maintained, and fell further when it became apparent that the S&P and Dow would not be setting new four year highs. The Dow had its third straight losing session on Wednesday. The loss was mitigated, however, by increased optimism following the release of the Fed minutes stating that several Fed members are leaning towards more stimulus if the economy does not pick up soon. On Thursday, selling accelerated when it became clear that not all the Fed members favor stimulus given that the US economy has maintained modest growth. The Dow finally finished with a gain on Friday, and a sizeable one at that, as the 100 point gain followed a report that Fed Chair Bernanke re-iterated a pledge to take action if more stimulus is needed.
[table id=77 /]

A disappointing Japanese GDP report broke the markets recent winning streak on Monday, although volume and volatility were low. A positive US retail sales report and several strong earnings report failed to ignite stocks on Tuesday, as the major indexes stayed near the unchanged mark. Stocks were once again listless on Wednesday with little change, perhaps a relief to investors remembering the mayhem the stock market experienced a year previous in August 2011. On Thursday stocks broke out of their doldrums with a solid gain that pushed the major indexes close to multi-year highs. Small gains pushed the Dow and S&P even closer to multi-year highs on Friday.
[table id=76 /]

The Dow broke a nine-week Monday losing streak to finish in the black for the first time since late May on the first day of the week, as concern over European debt has diminished for the moment. On Tuesday the S&P 500 finished above the 1400 mark for the first time in three months, as investors were heartened by the suggestion from a Fed official that the Fed should instigate a bond-buying program to stimulate the economy. The Dow followed suit on Wednesday by setting its own three month high. On Thursday the major indexes finished near the unchanged mark, as US initial jobless claims were largely in line with expectations. Stocks finished up on Friday once again. While the gain was minimal, continued optimism over world central bank action is forthcoming continue to push the major indexes to multi-month highs.
[table id=75 /]

Despite a slow Monday morning start following a disappointing report that US manufacturing had dipped in June, stocks were able to rebound and finish near the unchanged mark on increased speculation that global central bank action is inevitable. On Tuesday the month of July ended on a down note as moderate losses were had by the major indexes as investors held back on buying before hearing the Fed’s upcoming policy-setting statement. Stocks kicked off the month of August on Wednesday with a modest loss when Fed Chair Ben Bernanke failed to unveil any unexpected statement regarding the state of the US economy. On Thursday, the lack of a coherent plan from European Central Bank Chair Draghi sent stocks lower once again. All of the week’s woes were forgotten on Friday after a US payrolls report revealed that 163,000 new jobs were created in July, much better than expected. The Dow rose over 200 points, finishing the week at a three month high.
[table id=74 /]

The major indexes were down 1% to start the week on Monday as the volatility that was absent for much of 2012 has begun to return to roil the markets. On Tuesday, the Dow fell over 100 points for a third consecutive session on more Eurozone fears. The damage would have been worse if it had not been for a report that the Fed is closer to taking action to stimulate the economy. Stocks finished mixed on Wednesday as positive earnings reports from Boeing and Caterpillar were offset by an earnings miss by Apple. On Thursday. word that the European Central Bank might start a bond-buying program sparked a rally in the US markets that lead to a 200+ point gain for the Dow. The early week jitters were completely forgotten on Friday as the Dow surged to a nearly 200 point gain on renewed optimism for Euro Central Bank action, as the Dow broke the 13000 barrier for the first time since May.
[table id=73 /]

The major indexes kicked off the week on Monday with a small decline following the previous Friday’s huge upswing. Retail sales declined for the third month in a row, causing concern that the fragile economic recovery might be in jeopardy. On Tuesday, stocks initially fell after a non-committal speech by Fed Chair Ben Bernanke, but rebounded late in the day for a moderate gain on hope that Fed intervention might still happen despite Bernanke’s reticence. The gains continued on Wednesday, buoyed by a positive US home construction report, as well as several good earnings reports by major companies such as Honeywell. On Thursday, a strong earnings report by IBM outweighed disappointing US jobless, home sales, and manufacturing reports to lead the major indexes to another gain. Stocks finished the week on Friday with a triple-digit loss for the Dow on fresh concerns over a potential bailout of Spanish debt.
[table id=72 /]

The major indexes opened the week on Monday with minor losses brought on by a report over the weekend of a slowdown in the Chinese economy. Alcoa opened the second quarter earnings season on Tuesday with a less than stellar earnings report, sending the S&P 500 and the Dow to their fourth consecutive losing sessions. On Wednesday the slide continued when the Fed minutes for its June meeting indicated that monetary easing will not be happening any time in the immediate future. The Dow’s losing streak was extended to six sessions on Thursday, its longest in nearly a year. However, all the Dow’s weekly losses were erased on Friday, when the benchmark registered a 200 point gain on a surprisingly good earnings report form J.P. Morgan Chase.
[table id=71 /]