The Dow Jones Industrial Average ($DJI) ended the day with a gain of 38.82 points, or 0.31%, and closed at 12,441.58 on Friday. Twenty-three of the Dow's thirty index components ended the session in the black. The top performers were Bank of America (BAC) (+2.01%), Johnson & Johnson (JNJ) (+1.92%), Disney (DIS) (+1.29%), and Cisco Systems (CSCO) (+1.29%). The weakest were Intel (INTC) (-1.29%), Home Depot (HD) (-0.53%), and Merck (MRK) (-0.47%). Despite the gains in the second half of the week, the Dow still ended the week lower by 0.56% and is down 2.88% on the month.
Nasdaq Composite (Figure 3)
The S&P 500 ($SPX) gain of 5.41 points, or 0.41%, and closed at 1,331.10. The top percentage performer in the index on Friday was Ralph Lauren (RL), which rose 6.85% to recover a larger portion of Wednesday's post-earnings announcement selloff. Other top performers included Broadcom (BRCM) (+5.40%), F5 Networks (FFIV) (+5.30%), Pulte Group (PHM) (+4.33%), and Computer Sciences (CSC), which also worked to recover losses following earnings. Medco Health Solutions (MHS) (-8.97%) was the largest percentage decliner. It was followed by losses in Weyerhaeuser Co. (WY) (-5.44%), Aflac (AFL) (-3.21%), and Verisign (VRSN) (-2.67%). The S&P 500 ended the week lower by 0.16% and is down 2.38% so far this month.
The Nasdaq Composite ($COMPX) ended the session higher by 13.94 points, or 0.5%, on Friday and it closed at 2,796.86. Marvell Technology Group (MRVL) (+11.06%) was the strongest performer in the Nasdaq-100 ($NDX). Other top gainers included Broadcom (BRCM) (+5.40%), F5 Networks (FFIV) (+5.30%), and Millicom Intl. Cellular (MICC) (+4.57%). The weakest performers in the Nasdaq-100 were Verisign (VRSN) (-2.67%), Express Scripts (ESRX) (-1.76%), Vertex Pharmaceuticals (VRTX) (-1.36%), and Seagate Technology (STX) (-1.32%). The Nasdaq Composite finished the week lower by 0.23% and is down 2.67% month-to-date.
Although this coming week is a shortened one, it will be a busy one on the data front.
On Tuesday is the S&P Case-Shiller home price index, which is expected to continue to decline.
Wednesday is a bit busier with the ADP National Employment Index, April's construction spending, the Institute for Supply Management's manufacturing index, and May's auto sales.
Thursday will kick off with last week's initial jobless claims, followed by factory orders for April.
Then comes the doozy: Friday's jobs data. Nonfarm payrolls are expected to increase 175,000, which is not enough to really get this economy on the roll. The recent gains in jobs so far this year has struggled to keep up with the number of new workers entering the jobs market, let alone been enough to make a dent in the nation's staggering unemployment rate.
Also out on Friday is the Institute for Supply Management's nonmanufacturing index for May.
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.