Monday
After trading higher throughout the day on Monday stocks reversed course in the final minutes to end the session with modest losses. In economic news, July’s retail sales rose 0.3%, coming in above the Street estimate of 0.2%. In corporate news, shares of Thornburg Mortgage (TMA) slid $3.78 after S&P’s Ratings Services lowered its long-term counterparty credit rating on the company to B from BB. Shares of Sears Holding (SHLD) added 5.60% after the company announced a stock buyback of up to $1.5 billion. Light crude oil deliverable in September closed at $71.62 per barrel. The DJIA slid 0.02%, while the Nasdaq fell 0.10%.
Tuesday
Stocks moved lower on Tuesday as weak EPS guidance from Wal-Mart (WMT) and continued pressure on financial stocks weighed on the broader market. In economic news, June’s Trade Balance came in at a deficit of $58.1 billion, narrower than the Street estimated deficit of $61.0 billion. Mattel Inc. (MAT) slid 2.42% after the company recalled millions of toys due to hazards from small, powerful magnets and lead paint. Light crude oil deliverable in September rose to $72.38 per barrel. The DJIA slid 1.57%, while the S&P fell 1.82%.
Wednesday
After trading higher throughout the morning on Wednesday amid benign inflationary data, stocks sold off in the afternoon to end the session in negative territory, as continued credit concerns weighed on the broader market. In economic news, the core CPI rate, which excludes food and energy prices, rose 0.2%, in line with the Street estimate. In corporate news, shares of La-Z-Boy (LZB) 9.90%, after the company’s fiscal first quarter earnings came in below expectations. Light crude oil deliverable in September fell to $73.33 per barrel. The DJIA slid 1.29%, while the S&P fell 1.39%.
Thursday
Despite continued credit concerns, stocks rallied late in the afternoon on Thursday to end the session mixed. Light crude oil deliverable in September slid to $71.00 per barrel. In corporate news, shares of Network Appliance (NTAP) added 4.59% after the company’s fiscal first quarter earnings came in above expectations. After the close, Kohl’s (KSS) issued weaker-than-expected third quarter earnings guidance. The DJIA slid 0.12%, while the S&P added 0.32%.
Friday
Stocks rebounded on Friday as bargain hunting and aid from the Federal Reserve boosted the broader market. Prior to the open, the Fed lowered the discount rate — the rate the central bank charges qualified lenders, from 6.25% to 5.75%. In corporate news, Darden Restaurants (DRI) agreed to acquire Rare Hospitality (RARE) in a deal valued around $1.4 billion. Nordstrom (JWN) added 1.86% after the company’s second quarter earnings exceeded Street expectations. Light crude oil deliverable in September rose to $71.76 per barrel. The DJIA added 1.80%, while the S&P gained 2.44%.
Summary
Despite benign inflationary data, equity markets finished in negative territory for the week, as continued credit and liquidity concerns weighed on the broader market. For the week, the DJIA, S&P, and Nasdaq slid 1.23%, 0.55%, and 1.57%, respectively.
