Monday
U.S. equities staged a powerful afternoon rally on Monday that helped to more than erase Friday’s slide. Speculation that the Federal Reserve might begin to lower interest rates by the end of the year appeared to be a key driver of today’s gains. In corporate news, shares of
Bear Stearns (BSC) rose after the company announced that Warren Spector had resigned amid the firm's recent credit problems.
UnitedHealth Group (UNH) after its second quarter EPS came in above expectations. The
DJIA gained 2.18%, while the Nasdaq added 1.44%.
Tuesday
On Tuesday stocks ended higher following another seesaw trading session. The FOMC held its key interest rate steady and reiterated a bias toward fighting inflation.
Tenet Healthcare (THC) fell after the company reported a second quarter EPS loss of $0.06 on revenue of $2.23 billion versus consensus of a $0.01 loss and $2.24 billion.
El Paso Corp (EP) rose after the company reported second quarter EPS of $0.28 on revenue of $1.2 billion versus consensus of $0.23 and $1.12 billion. The
DJIA rose 0.26%, while the Nasdaq gained 0.56%.
Wednesday
On Wednesday equity markets finished sharply higher, capping a third consecutive day of gains. Robust corporate earnings in the Tech sector pushed the Nasdaq higher. In economic news,
Wholesale Inventories for the month of June rose 0.5%, versus the Street at 0.4%. In corporate news,
Cisco Systems Inc (CSCO) gained after the company reported fiscal fourth quarter EPS of $0.36 excluding one-time items on revenue of $9.43 billion versus consensus of $0.35 and $9.29 billion, respectively. The
DJIA gained 1.14%, while the Nasdaq added 2.01%.
Thursday
U.S. stocks were weaker across the board on Thursday as renewed concerns about losses in the U.S. subprime mortgage sector sparked a sell-off, causing a flight to safety. In economic news,
initial jobless claims for the week ended August 4, rose to 316,000, above the Street estimate of 310,000. In corporate news,
SRA International (SRX) rose after the company reported fiscal fourth quarter EPS of $0.28 on revenue of $326.2 million versus estimates of $0.27 and $320 million, respectively. The
DJIA fell 2.83%, while the Nasdaq lost 2.16%.
Friday
Equity markets finished mixed on Friday as regulators in Europe, Asia, and the U.S. injected cash into money markets, and investors struggled to assess the extent of the liquidity crunch. In economic news, the
import price index rose 1.1% in July, above consensus of 1.0%. In corporate news,
Countrywide Financial Corp. (CFC) fell after the company said it faces unprecedented disruptions in debt and mortgage finance markets that could hurt earnings and the company's financial condition. The
DJIA fell 0.23%, while the Nasdaq lost 0.45% and the S&P rose 0.04%.
Summary
Stocks ended the week in positive territory, as subprime concerns and liquidity issues were offset by the Federal Reserve releasing cash into the money supply.
For the week, the DJIA, S&P, and Nasdaq rose 0.44%, 1.44%, and 1.34%, respectively.
