Market Summary 10/25/2010

Stock Market Closing Prices – 10/25/2010

Dow ( DJIA ) Close      -            11164.05       +31.49

Nasdaq                     -                 2490.85         +11.46     

S&P 500 Close            -                1185.62            +2.54

Commodities Closing Prices  –  10/25/10

Gold Close     -        1341.20

Oil Close        –           82.31

Natural Gas    –            3.32

The Dow closed up 31 points to 11164 today, as stock market rallied with a better-than-expected​ report on existing-home sales and peace among the G-20 nations over currency rates. 

Stocks finished higher today, but a big opening jump faded as the day wore on. Financial shares were a drag on the market in part because of worries about the foreclosure mess and profit-taking after a strong performance last week. 

The G-20 meeting did nothing for the dollar, which has been lower against major currencies today, helping metals prices move higher. Gold settled up $13.80 to $1,338.90 an ounce. Crude oil settled up 83 cents to $82.52. 

Oct. 26, 2010 – Tuesday

DuPont to release details on quarterly results before market open.

Ford Motor to report quarterly results before market open.

Next Week's economic report

Monday: The National Association of Realtors will release its monthly report on existing home sales, which economists polled by Briefing.com expect rose to an annual rate of 4.25 million in September from 4.13 million the previous month.
Amgen (AMGN), Lorillard (LO) and Texas Instruments (TXN). 

Tuesday: The Case-Shiller 20-City index of home prices in major metropolitan areas for August is due shortly after the market opens. Economists expect a 2% jump after the previous month's 3.2% gain.

At 10 a.m. ET, the Conference Board will release a reading on consumer confidence for October. The index is expected to have ticked up to 49 from 48.5 in September.

 Bristol-Myers Squibb (BMY), Cummins (CMI), DuPont, U.S. Steel (X) and Waddell & Reed Financial (WDR). 

Wednesday: Before the start of trade, the Commerce Department will release its report on orders for durable goods, which are items meant to last three years or more. Economists polled by Briefing.com predicted the number of durable orders increased by 1.7% in September after a 1.3% drop the previous month.

 Allstate (ALL), auto-parts maker Borg-Warner  (BWA), cable operator Comcast (CWCSA), ConocoPhillips, Panera Bread,Martha Stewart Living Omnimedia (MSO), Procter & Gamble and Whirlpool.

Thursday: The Department of Labor will release weekly jobless claims figures before the start of trade. The number of Americans filing new claims for unemployment is expected to have hit 455,000, from 452,000 the previous week.

Before the opening bell, 3M (MMM, Fortune 500), Exxon Mobil (XOM,Fortune 500) and Motorola (MOT, Fortune 500) will report earnings.

Microsoft (MSFT, Fortune 500) will release its earnings data after the closing bell.

Friday: The first reading on gross domestic product (GDP) growth in the third quarter is due before the start of trading. GDP likely grew at a 2% annualized rate, according to estimates, after growing at a 1.7% annualized rate in the second quarter.

The Chicago PMI, a regional reading on manufacturing, is due shortly after the start of trading for the month of October. Analysts expect the index fell to 57.5 from 60.4 in September. Any index reading over 50 indicates expansion.

The University of Michigan's consumer sentiment index for April is also due after the start of trade. The index is expected to have inched up to 68 in October from 67.9 the previous month.

 Chevron (CVX), Merck (MRK), Estee Lauder (EL), Ruth's Hospitality Group. Merck will be closely watched for what it says about growth and its drug pipeline. Chevron will sketch in the global energy market. 

Big Boost From Dollar Decline

0.5 percentage point: The potential boost in annual U.S. economic growth from the dollar’s decline since August 27.

As finance ministers from the Group of 20 developed and developing nations meet in Seoul in an effort to avert a currency war, it’s helpful to recognize the temptation they face. A little move in an exchange rate can have a big impact on a country’s growth.

Consider the recent fall in the dollar. Since August 27, when Federal Reserve Chairman Ben Bernanke signaled the central bank was likely to pump more dollars into the economy, the greenback’s value has fallen about 4.8% against the currencies of U.S. trading partners (data through October 15). Given the historical behavior of U.S. exports and imports, a sustained move of that magnitude should shrink the U.S. trade deficit by nearly $140 billion over the next two years. That’s the equivalent of an added 0.5 percentage point of economic growth in each year.

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Week Ahead: Market to Cruise as Bigger Events Loom Ahead

Lacking any big surprises, the markets may seem to be on cruise control in the coming week, as investors await the U.S. mid-term election and the Fed's November meeting.

Big oil joins the long list of companies reporting earnings, as a third of the S&P 500 report in the week ahead. Exxon Mobil, Ford, Microsoft, Merck, andProcter and Gamble are among those on deck. There is also a heavy calendar of economic reports, dominated by housing numbers but also including the important first look at third quarter GDP on Friday.

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Cortes: Analyst Predicting $100 Oil Missed 'This'

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Warren Buffett: Forget gold, buy stocks

...

Okay, so gold is not a screaming buy to Buffett. What should a typical upper-middle-class person in the U.S. buy to prepare for retirement?

"Equities," Buffett answers without a moment's hesitation.

...

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Market Summary 10/22/2010

Stock Market Closing Prices – 10/22/2010

Dow ( DJIA ) Close      -            11132.56       -14.01

Nasdaq                     -                  2479.39         +19.72       

S&P 500 Close            -                  1183.08          +2.82

Commodities Closing Prices  –  10/22/10

Gold Close     -        1324.40

Oil Close        –           81.69

Natural Gas    –            3.32

The Dow closed down 14 points to 11133 today, as stock market rallied with mixed earning reports.

Trading volume was light today as Wall Street awaited the results of this weekend's meeting of G-20 finance ministers -- in addition, there's the combination of the November elections and the Nov. 2-3 Fed meeting. 

The dollar was higher for most of the day. Gold settled down 50 cents to $1,325.10 an ounce. Gold was down 3.4% on the week. Crude oil, however, settled up $1.13 to $81.69 a barrel.