The Dow Jones industrial average rose 47 points in very light trading. It was the seventh day of gains out of the past eight for the index. Treasury prices eased as traders became more willing to take on risk.  Stocks have shaken off the doldrums of August and marched steadily higher in September thanks to a series of encouraging signals on the economy. The latest came Friday morning with a report that wholesale inventories shot up in July, a sign of confidence that retail sales will pick up.

“It’s becoming more evident that confidence by consumers and the labor market is improving,” said Tim Speiss, chairman of EisnerAmper’s Personal Wealth Advisors practice. “It’s tepid; It’s weak; But it’s progress.” The energy sector got a lift from a jump in oil prices. Oil climbed about 2 percent after a pipeline that delivers oil to Midwest refineries was shut down. Oil companies like Chevron Corp. and Schlumberger rose on the news. The market‘s September rally has paused only once so far, when concerns resurfaced about European banks. European markets fluctuated Friday after a report that German banking giant Deutsche Bank is considering raising new cash through a stock sale.

Many of the recent improvements in economic indicators have been incremental, but given the deep pessimism about the economy that had set in during August even faint glimmers of hope on the job market and other parts of the economy like trade have been enough to please investors.  “There’s been so much negativity that it doesn’t take much in terms of data beating expectations to propel the market,” said Hank Smith, chief investment officer at Haverford Investments.

The Dow rose 47.53, or 0.5 percent, to close at 10,462.77.  Broader indexes also rose. The Standard & Poor’s 500 index rose 5.37, or 0.5 percent, to 1,109.55, while the Nasdaq composite index rose 6.28, or 0.3 percent, to 2,242.48.  About two stocks rose for every one that fell on the New York Stock Exchange, where volume was extremely low at 755 million shares.

Even with their recent gains, most indexes had only modest advances for the week because of a downturn on Tuesday because of the worries about European banks. The Dow is up 0.1 percent for the week, the S&P is up 0.5 percent, and the Nasdaq is up 0.4 percent.  Bond prices dipped. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.80 percent from 2.76 percent late Thursday. Its yield is used to help set interest rates on mortgages and other consumer loans.

Oil rose $2.20, or 3 percent, to $76.45 a barrel on the New York Mercantile Exchange. Chevron rose $1.46 to $78.82, while Schlumberger Ltd. rose 78 cents to $59.31.

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I love expiration days because most now over look the August monthly CBOE expiration…which is today.  It usually has an inter day whipsaw somewhere in it where it looks like hell and then rallies, or the inverse, which is sell off that abruptly rallies like its gonna get even on the day – and then tanks.  It is called whipsaw for a reason ( see photo).  I would mark your calender if you trade inter day for all monthly expirations…I have some stories about traders and investors getting clipped because they were unaware.

Below are some comments from market watchers….

“We’re not seeing any significant growth prospects,” said Peter Costa, president of Empire Executions. “Why be in the market if there’s no (near-term) prospects for growth?”

Oil prices extended their slide on worries that future demand will wane if economic growth remains tepid. Energy stocks were among the worst performers on the day, including oil companies Chevron Corp. and ConocoPhillips. Overseas markets also fell, reacting to reports Thursday that initial claims for unemployment benefits in the U.S. rose last week and manufacturing in the Mid-Atlantic region shrank. “We’re probably on a continuation from yesterday’s disturbing claims number,” said Paul Zemsky, head of asset allocation at ING Investment Management. “There’s really nothing to hang your hat on.” Earlier this year, traders were worried Europe’s economy would slow down so much that it would put a drag on a global recovery. Now, economic reports are making investors worry that the U.S. economy will slow worldwide growth.

In afternoon trading, the Dow fell 89.80, or 0.9 percent, to 10,181.41. The Standard & Poor’s 500 index fell 7.89, or 0.7 percent, to 1,067.74, while the Nasdaq composite index fell 9.52, or 0.4 percent, to 2,169.43. About three stocks fell for every one that rose on the New York Stock Exchange, where volume came to 633.5 million shares. Volume has been exceptionally low in recent weeks, which has added volatility to the market. But many stock options are expiring Friday, which could be providing a lift to volume.

Data has shown in recent months that private employers are largely skittish about hiring new workers because they are unsure how strong business will be in the coming quarters. That, in turn, has people worried about their jobs and spending less. But until spending picks up, unemployment could remain high. Mark Luschini, chief market strategist at Janney Montgomery Scott, said companies are also reluctant to hire because of worries about taxes and government programs like the health care reform passed earlier this year. “The uncertainty that exists on regulatory and income taxes has (employers) in stall mode,” Luschini said. Companies are worried about whether higher taxes and costs associated to regulation reform will impact profit margins and cause shoppers to reduce spending if they are paying more taxes, Luschini said. The unemployment rate remains at 9.5 percent and analysts widely agree it needs to fall to lead to a stronger rebound.

In corporate news, Dell Inc. reported a better-than-expected profit Thursday, due largely to increased technology spending by businesses. However, sales in its consumer personal computer division were flat compared with the same quarter last year — further evidence that shoppers are hesitant to buy new goods. Hewlett-Packard Co. reported quarterly results that were in line with preliminary results it released earlier in the month. Its profit rose 6 percent. Unlike Dell, it had growth in its personal computer sales. HP fell $1.07, or 2.6 percent, to $39.69. Dell shares fell 5 cents to $11.99.

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Stocks tumbled Thursday after two disappointing economic reports renewed investors’ concerns about the pace of a recovery. The Dow Jones industrial average fell about 165 points in afternoon trading. Broader indexes also fell by more than 1.5 percent. Interest rates also fell sharply as investors flocked to the safety of Treasury bonds.

The Labor Department said claims for unemployment benefits rose unexpectedly last week and the Federal Reserve of Philadelphia said manufacturing activity in the mid-Atlantic region has dropped during August.“The Philly Fed number was just awful,” said Randy Frederick, director of trading and derivatives at Charles Schwab. “The jobs number was bad, but not as far off the mark as the Philly number.”The pair of economic reports followed news that Intel Corp. was acquiring McAfee Inc. The deal, valued at $7.68 billion, was not enough to offset the weaker economic readings.

The reports are the latest in a months-long string of conflicting readings on the economy. The reports have shown the pace of a rebound is slowing and that companies are skittish about adding new workers. That has hurt stocks on some days in recent weeks. It has also stoked fears about the economy falling back into recession.At the same time, corporate announcements, including earnings reports for the past six weeks, have largely showed companies are doing well. Mergers and acquisitions activity is often considered a positive sign because it means companies are willing to spend money to expand their businesses and are confident that prospects are improving.

In afternoon trading, the Dow fell 165.90, or 1.6 percent, to 10,249.64. The Standard & Poor’s 500 index fell 20.12, or 1.8 percent, to 1,074.04, while the Nasdaq composite index fell 38.84, or 1.8 percent, to 2,176.86.About six stocks fell for every one that rose on the New York Stock Exchange, where volume came to 484.6 million shares.

Volume has been particularly light in recent weeks, even by summer standards, meaning many investors are still uncertain about the direction of the economy.Joe Benanti, managing director at Rosenblatt Securities, said low volume is probably adding to the sell-off.It’s “probably taking trading a little to an extreme, more than it should,” Benanti said about the light trading volume.If economic reports over the coming months continues to show the economy is growing, even slowly, it could alleviate fears of a second recession. That, in turn, could bring many investors back into the stock market.

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Stocks fluctuated Monday as investors did a little buying after four days of heavy selling. The Dow Jones industrial average erased its early losses and was up 27 points. Other major stock indexes rose slightly. Interest rates dropped as investors looking for safe investments bought U.S. Treasury notes and bonds. The market initially pulled back after a regional manufacturing report fell short of forecasts and Japan became the latest country to show signs of slowing growth. Both reports raised investors’ concerns about the pace of the global economic recovery. Analysts said Monday’s trading was just a pause following four days of losses that sent the Dow down almost 400 points.

“The market is really being controlled by (short-term) traders,” said Mike Rubino, CEO at Rubino Financial Group in Troy, Mich. “The long-term investor doesn’t appear to be anywhere in sight.” Without those long-term investors, trading is expected to remain erratic for the foreseeable future. In midday trading, the Dow rose 26.72, or 0.3 percent, to 10,329.87. The Standard & Poor’s 500 index rose 3.05, or 0.3 percent, to 1,082.30, while the Nasdaq composite index rose 19.67, or 0.9 percent, to 2,193.15. About two stocks rose for every one that fell on the New York Stock Exchange, where volume came to 329.6 million shares. Investors continued buying Treasurys Monday, driving interest rates lower. U.S. government bonds are looking more and more appealing to investors wanting to find a safe place for their money as the economy cools and stocks drop. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.60 percent from 2.68 percent late Monday. Its yield is often used to help set interest rates on mortgages and consumer loans. The yield on the 10-year note is near the level it last hit in March 2009 when stocks fell to a 12-year low. “It’s a sign of pessimism that investors accept that low a yield,” said Joe Heider, principal at Rehmann Financial in Cleveland. Investors who are concerned about the U.S. economy got some bad news from overseas Monday. Japan said its economy grew just 0.1 percent in the second quarter, well below the 1.2 percent growth in the first quarter and short of expectations. The report follows signs last week that both the U.S. and Chinese economies are not growing as fast as earlier in the year. Meanwhile, the Federal Reserve Bank of New York said manufacturing activity in the state rebounded slightly this month after falling sharply in July. Despite the modest gain, activity did not expand as much as had been forecast, which indicates that economic growth remains tepid.

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Stocks fluctuated in early trading Friday after the latest consumer spending readings disappointed investors. The Commerce Department said that retail sales rose 0.4 percent in July. That was an improvement after two months of sales declines. But the number was just below economists’ forecast of a gain of 0.5 percent. The report did show strength in auto sales, but it also showed that consumers are shying away from other purchases. The report came out shortly after retailer JCPenney Co. lowered its earnings forecast for the year, citing expectations that consumer spending will be slow. On Thursday, competitor Kohl’s Corp. lowered its earnings outlook. Consumer spending has remained weak along with the labor market. And there are no signs that employers are ready to start hiring at a pace to help lift the economy. On Thursday, the Labor Department said the number of people filing for unemployment benefits for the first time rose last week. Stocks have been falling as investors’ take on the economic recovery grows more pessimistic. The Dow Jones industrial average has lost 380 points over the past three days. Analysts say many traders are on vacation or just not willing to make any big moves on stocks. That has led to lower trading volume and some skewing of price changes. The big drop may also have lured some buyers back into the market Friday. The Dow Jones industrial average was up 3.03, or 0.03 percent, at 10,325.25. The Standard & Poor’s 500 index rose 0.18, or 0.02 percent, to 1,083.79. The Nasdaq composite index fell 4.41, or 0.2 percent, to 2,185.86. The yield on the Treasury’s 10-year note, which is used to set rates on consumer loans including mortgages, was 2.72 percent, down from late Wednesday’s 2.75 percent. Yields fall as prices rise. Treasury prices have risen sharply this week as investors — worried about the economy and watching stocks fall — sought a safer place for their money. Overseas markets were down. London’s FTSE-100 index was up 0.1 percent, while Germany’s DAX fell 0.1 percent and the CAC-40 index in Paris fell 0.2 percent. Investors in Europe were more concerned with signs of slowing growth in the U.S. than in their own economies. News that the European economy had grown 1 percent during the second quarter gave some support to stocks, but it was not enough to lift them across the board.

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Stocks Pulled back mid day around 2%, and few think about the fact that they have run 10% since bottom May 5th post Flash Crash.  The Fed news sent a few Global shivers to fan this broad based sell off.  I would look for a normal 5% correction in this move and we should see a few bargain hunters showing up somewhere across the normal retracement levels.

(Reuters) – Stocks dropped more than 2 percent on Wednesday as worse-than-expected Chinese factory data and a weaker outlook from the Federal Reserve added to worries about the economic recovery. The S&P 500 once again fell into negative territory for the year, with the S&P materials index (^GSPM – News) down more than 3 percent and an index of semiconductors (^SOXX – News) tumbling 4.3 percent.

A volatility index was up sharply, suggesting investors see further choppiness in the market. On Tuesday the Federal Reserve downgraded its outlook on the economy, and said it would begin funneling proceeds from maturing mortgage bonds it holds into longer-term government debt to keep borrowing costs low. The Fed’s assessment of the economy highlighted growth worries.

“Maybe the Fed made investors realize the economy is growing at an anemic pace at best,” said Alan Lancz, president, Alan B. Lancz & Associates Inc., an investment advisory firm, based in Toledo, Ohio. The Dow Jones industrial average (DJI:^DJI – News) was down 226.06 points, or 2.12 percent, at 10,418.19. The Standard & Poor’s 500 Index (^SPX – News) was down 28.53 points, or 2.54 percent, at 1,092.53, and was down 2 percent for the year. The Nasdaq Composite Index (Nasdaq:^IXIC – News) was down 65.74 points, or 2.89 percent, at 2,211.43.

China reported a slowdown in factory output, adding to the picture of softening domestic demand painted by other data a day earlier that showed a sharp drop in import growth. Among top decliners was Cisco Systems (NasdaqGS:CSCO – News), which is due to report earnings after the bell. The stock was down 2.8 percent to $23.64.

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Summer Friday and GDP is slighly worse than expected and the economy grew slower, thats not really a shocker, as we digst earnings.  Lets face it Q3 can be a bore and all we really wait for is the Football Season and hope to avoid a market sell off in October.  On this Friday the best thing to do is head to weekend thinking and avoid closing on the lows for the day.

(AP) — Stocks fell and interest rates rose in the Treasury market Friday after the government said the economy grew at a slower pace than expected during the second quarter. The Commerce Department said the gross domestic product, the broadest measure of the economy, grew at an annual pace of 2.4 percent from April to June. That’s less than the 2.5 percent economists polled by Thomson Reuters had forecast.

The Dow Jones industrial average tumbled 106 points in early morning trading.

The report confirmed investors’ belief that the recovery is weakening as unemployment remains high and government stimulus programs end. Consumers cut back on their spending because of job worries and companies spent less to rebuild inventories.

The figure was especially discouraging after the government revised first-quarter growth to a pace of 3.7 percent from 2.7 percent.

The Dow Jones industrial average entered the last day of July up 7.1 percent for the month. The market‘s big gains have come on strong corporate earnings and profit forecasts that conflict with economic reports that point to a slowdown.

In the past few days, however, investors have been more focused on economic reports. Disappointing numbers on housing and unemployment and cautious words from the Federal Reserve have sent stocks lower.

In early morning trading, the Dow Jones industrial average fell 105.96, or 1 percent, to 10,361.20. The Standard & Poor’s 500 index dropped 11.88, or 1.1 percent, to 1,089.65, while the Nasdaq composite index fell 28.50, or 1.3 percent, to 2,223.19.

The disappointing GDP report sent investors into the safety of the Treasury market, which drove interest rates lower. The yield on the 10-year Treasury note, which moves opposite its price, fell to 2.93 percent from 2.99 percent late Thursday. Its yield is used to set rates on mortgages and other consumer loans.

European markets fell after reports that Spain’s credit rating is likely to be cut by Moody’s Investors Service. The potential downgrade comes as the country’s unemployment rate jumped to a 13-year high of 20.09 percent and the government continues to grapple with rising debt problems.

Losses also accelerated in Europe after the weak GDP report.

Spain’s IBEX 35 fell 2 percent. Britain’s FTSE 100 fell 0.8 percent, Germany’s DAX index dropped 0.8 percent, and France’s CAC-40 fell 0.8 percent. Japan’s Nikkei stock average fell 1.6 percent.

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