Rightfully so, most consumers of media, as well as investors, were focused
Friday on the horrendous events in Japan, which continued to play out with
massive recovery efforts and tsunami watches on the western U.S. On the
financial market side of things, however, stocks managed to rebound in a way
they couldnt on Thursday, as oil prices slipped for a second straight day. More
importantly, perhaps, equities were able to re-capture technically significant
levels of 12,000 on the Dow Jones Industrial Average and 1300 on the S&P 500.
The Dow rose 60 points to 12,044, the Nasdaq gained 15 points to 2716 and the
S&P 500 added 9 points to 1304. That the market pushed higher on Friday wasnt a
certainty, however. Stocks began the session lower, in part as a reaction to the
developments in Japan with the S&P 500 even falling below 1290 before the
retreat in oil prices became just too compelling for stocks to not rise higher.
Oil finished down 1.5% to just above $101 close enough to $100 to be a cruel
reminder that oil prices have now been in triple digits for six trading sessions
in a row. The usual suspects exploited lower oil prices, with airlines
continuing to get off the mat the Dow Jones U.S. Airlines Index has climbed
about 10% in a week. Southwest Airlines (NYSE: LUV ) gained 1.8% on Friday.
Precious and nonprecious metal miners also rode higher on lower oil prices. Gold
and silver prices both finished higher. Heading into next week, little seems
settled for investors, who cant exactly yet boast confidently that oil prices
have peaked in the near term, or, for that matter that Dow 12,000 has been
eclipsed for good. Friday provided a devastating diversion, and the momentum of
stocks is just as unsettled.
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