Fri, 10-9-15

Every once in a great while I'm unable to get this out before midnight so it's going to be dated Saturday on the blog.  It's just as well as the Friday report is rather uneventful with the Dow up a modest 34 points mainly because everyone is now in wait-and-see mode for earnings season, waiting to see if and how China will impact U.S. earnings in Q3.  So far not so good with Yum! Brands yesterday reporting a big dip in revenues and Alcoa today also disappointing.  Still, though last week was characterized as the worst of the year, this week is being hailed as the best of the year with the Dow up nearly 4% and the Nasdaq more than 2.5%.  Do recall that, despite the drubbing the markets took in September and early October, most Wall Street analysts expect the Dow to end up 10% by year-end.  Judging from this week, we're already well on the way.  Of course, two companies do not a picture make but there will be many more reporting starting next week.  And there will also be the Fed next week.  Volume was a little below average at 6.8 billion.

Markets | Fri Oct 9, 2015 5:41pm EDT

Wall Street ekes out small gain to cap strongest week of year

BY SINEAD CAREW

DJ:  17,084.49  +33.74        NAS: 4,830.47  +19.68         S&P:  2,014.89  +1.46

(Reuters)  U.S. stocks closed slightly higher on Friday, ending the S&P 500's best week for 2015 on a quiet note as investors waited for U.S. companies to report third-quarter earnings.

The S&P 500 had a weekly gain of 3.3 percent, its best week since Dec. 2015, as investors regained some optimism after a period of heavy volatility since late August on concerns about global growth and uncertainty about U.S. interest rates.

"We've had a very good week and a very good start to the fourth quarter," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "Next week third quarter earnings season begins in earnest. You had disappointing results from Alcoa yesterday and further reason to take money off the table as you go into next week."

Investors are anxious to gauge how companies are faring amid U.S. dollar strength and concerns about growth in China, the world's second biggest economy.

Trading volume was light with 6.77 billion shares changing hands on U.S. exchanges compared the 7.52 billion average for the previous 20 sessions according to Thomson Reuters data.

Financial stocks were among the worst performers Friday as investors read further signs of dovishness in the previous day's release of minutes from the Fed's September meeting. Policymakers held interest rates steady and the minutes showed they sought evidence a global economic slowdown would not knock the U.S. economy off course.

After recent weak performance, financial stocks will be in focus next week as Goldman Sachs Group (GS.N), Bank of American Corp (BAC.N) and other big banks post quarterly results.

The Dow Jones industrial average .DJI rose 33.74 points, or 0.2 percent, to 17,084.49, theS&P 500 .SPX gained 1.46 points, or 0.07 percent, to 2,014.89 and the Nasdaq Composite.IXIC added 19.68 points, or 0.41 percent, to 4,830.47.

"We've had a super run," said Jon Merriman, chief executive officer at Merriman Holdings Inc in San Francisco. "You had sentiment that was extremely bad eight days ago. Sentiment has become more optimistic. That signals that it's time for the market to roll over."

Information technology .SPLRCT was the strongest S&P sector with 0.5 percent gain. Its biggest driver was Apple Inc (AAPL.O) with a 2.4 percent increase, its best day in a month.

Five of the 10 major S&P sectors fell, led by the energy sector .SPNY, drop of 0.7 percent as oil prices settled roughly unchanged. Financials .SPSY dropped 0.6 percent.

For the week, the Dow rose 3.7 percent while Nasdaq rose 2.6 percent.

Alcoa (AA.N), one of the first S&P components to report earnings, fell 6.8 percent to $10.26 and was the S&P's biggest percentage decliner after it reported disappointing results.

Advancing issues outnumbered declining ones on the NYSE by 1,726 to 1,318, for a 1.31-to-1 ratio on the upside. On the Nasdaq, 1,516 issues rose and 1,233 fell for a 1.23-to-1 ratio favoring advancers.

The S&P 500 posted 25 new 52-week highs and one new low; the Nasdaq recorded 71 new highs and 29 new lows.