Market Recap: Stocks End Week Depressed
Markets closed down today:
▼ Dow: -0.13 percent
▲ Nasdaq: +0.13 percent
▼ S&P: -0.01 percent
▲ Gold: +0.29 percent to $1,772.40 an ounce
▼ Silver: -0.30 percent to settle at $34.41
▼ Oil: -0.06 percent
Markets were down because:
The market took a recess Friday from the Fed rally.
Stocks have been pushing higher for weeks, not because investors think the economy is healed but because of expectations, then confirmation, that the Federal Reserve would step in and try to fix it.
Most of Friday seemed like another day in the Fed rally, which began in earnest early this month, until stocks slipped in the late afternoon. The Dow Jones industrial average rose as much as 50 points before falling into the red in the last half-hour of trading. It’s just the fourth day in September that the Dow hasn’t managed a gain.
Still, the declines were small. The Dow lost 17.46 points, or 0.1 percent, to 13,579.47. The Standard & Poor’s 500 fell in the final minutes of trading, closing down a minuscule 0.11 point, or 0.01 percent, to 1,460.15.
The other main index, the Nasdaq composite, rose four points, or 0.1 percent, to 3,179.96.
Despite the Friday blip, stocks are still much higher than might be expected for such a morose economy. This month, the Dow and the S&P started trading at levels not seen since December 2007, nine months before the fall of Lehman Brothers investment bank. Since the start of June, the Dow has popped nearly 1,200 points.
But the stock market’s party mode doesn’t mean the underlying economy is healed — far from it. The summer rally is mostly the result of vows by the Federal Reserve and other central banks, like the Bank of Japan and the European Central Bank, to do more to try to help.
But the promises are also an unsettling reminder: The central banks think the economy is so bad that it can’t bounce back on its own.
The signs were obvious Friday: The Labor Department reported that the unemployment rate rose in 26 states last month. The World Trade Organization cut its estimates for growth in global trade for this year and next.
In Europe, Spain was reportedly close to asking for a bailout from Europe. The finance minister of Germany, which has paid for much of the previous bailouts, shot back that Spain doesn’t need it.
It’s all a reminder that there’s only so much the Fed can do. It can’t fix the fiscal cliff facing the U.S. government, the higher taxes and government spending cuts that take effect next year unless Congress acts. Others worry that the Fed has used up all the tricks that have previously fueled the stock market.
The Associated Press contributed to this report.
Benghazi, IRS, AP...What's next? Only TheBlaze TV offers the truth from Glenn Beck, Andrew Wilkow, and Real News from TheBlaze. Get instant access and a free trial here.
- ‘The Daily Show’ Creator Makes Outrageously Offensive Anti-Conservative Joke About Okla. Tornado 463 Comments
- Washington Times Writer: Fox News Scandal Goes ‘Much Deeper,’ W.H. Sitting on Something Top Obama Aides ‘Terrified’ About 440 Comments
- University Will Investigate Christian Professor’s Intelligent Design Class Following Atheist Furor 317 Comments
- See the First Behind-the-Scenes Photos as Beck and Mercury One Survey the Damage in Okla. 256 Comments
- Why Were DHS Agents Seemingly Monitoring Multiple Tea Party IRS Protests Across the Country on Tuesday? 237 Comments
- Farrakhan Talks of ‘Satanic Jews’ and ‘Synagogue of Satan’ at Detroit Church Speech — but Wait Until You Hear Who Was in Attendance Read More
- Biden Praises Jewish Leaders for Helping Change Americans’ Views on Gay Marriage Read More
- ‘Death! You F**k!’: Bat Mitzvah Chaperone Unleashes Explosive, Profanity-Laced Tirade Against Kids Over Candy-Throwing Incident Read More
- How Can God Let Tragedies Like the Okla. Tornado Exist? Pastors Weigh In 191 Comments
- Is This Video of Pope Francis Performing an Exorcism? 102 Comments
- China Sets off What Could Be the World’s Longest Demolition Read More
- Here are the 5 Most Interesting Moments from Tuesday’s Hearing on the IRS Scandal 123 Comments
- Jay Carney Shifts IRS Timeline (Again!) 104 Comments
- Top IRS Official at Center of Political Targeting Scandal Will Plead the Fifth 140 Comments
- Disgraced IRS Interim Chief Now Fully Admits Knowledge of Planted Question (but Did It Reveal a Past Half-Truth?) Read More
- The Incredible Role Facebook Played in the Aftermath of Devastating Okla. Tornado Read More
- Tech Company Demonstrates Remote Disabling of a ‘Smart Gun’ Read More
- Meet the Blind Man Nicknamed ‘Midnight Gunslinger’ Who Has 80% Shot Accuracy Read More
- How a $4.5 Million Network of 181 Sirens Helped Save Lives in Oklahoma Twister Read More
- See the Record-Setting Python a Man Caught With His Bare Hands (and Guess How Much It Weighed) Read More
- Mortar lands in Congo as UN chief arrives
- Zimbabwe's president signs new constitution
- Garcetti elected Los Angeles mayor over Greuel
- South Sudan warns it may shut down oil flow again
- Iran's Ahmadinejad denounces election decision
- Czech president settles dispute over gay rights
- Vatican releases 1st report of financial watchdog
- UK eyes giving visas to 600 Afghan interpreters