Date of publish: 14/10/2011
For Financial week: 10-14/10/2011
Written by Matthew McCreath
Week in Review
Stocks had
their steepest drop in two weeks, as fresh European sovereign-debt worries
helped knock the market off a 2 ½-month closing high. The tone soured before
the opening of U.S. trading after a representative for German Chancellor Angela
Merkel said Europe's leaders would be unable to address every sovereign-debt
problem at a euro-zone summit on Oct. 23. The Dow Jones Industrial Average on
Monday lost 247 points, or 2.13%, to 11397, closing near the session's lows and
wiping out all of Friday's gains. The loss pushed the blue-chip index back into
negative territory for 2011. The S&P 500-stock index shed 24 points, or
1.94%, to 1201, and the technology-oriented Nasdaq Composite declined 53
points, or 1.98%, to 2615.
Shares rose
sharply but failed to recapture steep losses in the previous session, as
conflicting reports on Europe's debt crisis whipped the market around during
Tuesday's final trading hour. The Dow seesawed from steep losses to big gains
in a volatile session before finishing up 180 points, or 1.6%, to 11577. The
rally came after the blue-chip index dropped 247 points Monday. The S&P
500-stock index gained 25 points, or 2%, to 1225, led higher by strong gains
for financial and energy stocks. The Nasdaq Composite rose 43 points, or 1.6%,
to 2657. The market received a jolt higher in the final hour of trading after
the Guardian reported France and Germany agreed to increase the size of
Europe's rescue package to more than €2 trillion ($2.7 trillion). But the
report was almost immediately contradicted by Dow Jones Newswires, which
reported European officials are still debating the size of the euro zone's
bailout fund.
Stocks dropped
as a gloomy assessment of the U.S. economy from the Federal Reserve added to a
sharp fall in technology stocks after Apple’s earnings
disappointment. The Dow Jones Industrial Average fell 72 points, or 0.6%, to finish
at 11504. The S&P 500-stock index lost 15 points, or 1.3%, to 1210, and the
Nasdaq Composite shed 53 points, or 2%, to 2604. The Dow spent much of the day
in positive territory but quickly sank after the release of the Fed's
"beige book" report of domestic economic activity showing investors
pared back risk in line with the central bank's cautious take on the economy.
Stocks rose
Thursday, zigzagging from losses to gains throughout the session after a series
of conflicting headlines on European sovereign debt. The Dow finished up 37.16
points, or 0.3%, to 11542, while the S&P 500-stock index added 5.51, or
0.5%, to 1215. The Nasdaq Composite fell 5 points, or 0.2%, to 2599. Stocks
whipped from positive to negative throughout the session. They moved higher
midday after French President Nicolas Sarkozy and German Chancellor Angela
Merkel issued a joint statement pledging European Union leaders would have a
bailout plan in place by Wednesday. Those leaders also called for immediate
talks with the private sector over Greek debt. Earlier, stocks had fallen after
reports a Sunday European summit could be postponed because of disagreements
over how to deploy cash in the Continent's bailout fund.
Stocks rose
following another batch of corporate earnings and ahead of this weekend's
European Union summit on the sovereign-debt crisis. The Dow gained 226 points,
or 2%, to 11768, near session highs during the final trading hour of the day.
The gains put the Dow on pace for its fourth straight weekly gain, marking its
longest winning streak since January. The measure is up more than 1% this year.
The S&P 500-stock index advanced 20 points, or 1.6%, to 1235. The
technology-oriented Nasdaq Composite advanced 32 points, or 1.2%, to 2630.
Investors remain fixated on how European leaders will combat the debt crisis
that has spread to many regions across the euro zone.
