US Stocks Week Ended June 22, 2012

 
U.S. equity markets ended a volatile week mixed as large-caps fell but small-caps, which are less exposed to international markets, posted gains. Stocks traded flat to start the week as positive results from the Greek elections were overshadowed by a surge in Spanish bond yields. Investors pushed up stocks mid-week on speculation of additional stimulus from the Fed, but reversed course after the Federal Reserve only increased "Operation Twist" by $267 billion. Additionally, the Federal Reserve cut its estimates for growth due to a deceleration in hiring. Equities recovered some of their losses on Friday as Moody's bank downgrades were less severe than originally expected. Turning to stock news, JPMorgan Chase gained for the week after different sources reported they had sold the majority of their losing position. Halliburton Co. slumped for the week as servicing demand is likely to be impacted by the recent drop in oil prices. Retailer Bed Bath & Beyond Inc. fell nearly 16% for the week as comparable store sales slowed and guidance was below analyst expectations. DSW Inc. also fell after earnings as management cited an increased reliance on sale items. InterDigital, Inc. gained 16% after announcing the sale of 1,700 patents to Intel Corp. and a doubling of their current buyback program. Looking ahead to next week, sentiment from the European Union's two-day meeting in Brussels, the Supreme Court's likely ruling on healthcare reform and May's durable-goods orders will be key drivers. For patient investors, markets continue to look compelling on a valuation basis. Data points from earnings season, starting in a few weeks, will be a welcome change for the market currently being driven by macro and sovereign debt uncertainty.
Posted on Monday, June 25, 2012 @ 9:00 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.