With markets closed for Good Friday, stocks finished off a very good week, retracting a decent portion of the losses we had seen in the previous few weeks. The coast is still not clear thought for major risk taking - but we are seeing some rebounds in the hardest hit areas, specifically internet, biotech, and momentum stocks. Today the S&P 500 gained 0.14% and NASDAQ 0.23% after both opened in the red with Google and IBM pressured. Stocks came off their lows after a gauge of manufacturing activity in the Philadelphia region rose to 16.6 in April from 9.0 in March - this was ahead of expectations. For the week, the S&P 500 added 2.7% and the NASDAQ advanced 2.4%.
We missed an interesting session yesterday with our quarterly survey so it is worth mentioning it today. The market was very volatile yesterday but sometimes that can cause a shakeout of sorts when it comes at the end of a correction. Also the NASDAQ hit a key moving average - the 200 day - which if nothing else is usually a place for momentum to reverse in the near term. Was that the end of the correction? Of course we never know until after the fact but creating a new low and then surging off it can sometimes signal a key reversal. As for today, the Federal Reserve continues to try to massage the market's nerves and Janet Yellen helped lift spirits, pushing the S&P500 up 1.05% and the NASDAQ 1.29%.
With the 1st Quarter of 2014 now behind us, it is time to take a break from our daily market recaps to conduct our next StockTradingToGo (STTG) Reader Satisfaction Survey.
Indexes bounced back from oversold levels but until proven otherwise this is just the natural ebb and flow of a downturn. The S&P 500 gained 0.82% and the NASDAQ continues to lag, gaining 0.57%. There was a key retail sales report which lifted spirits but truthfully generally when a market gets too extreme short term one way or the other any excuse to move in the other direction for a short period of time will do.
The selloff continued Friday as we hit short term oversold levels. The S&P 500 fell 0.95% and the NASDAQ 1.34%. For the week, the S&P 500 fell 2.6% and the Nasdaq lost 3.1%, the biggest weekly decline for both indexes since June 2012. The market ignored a U.S. consumer sentiment reading that was a nine month high, with the Thomson Reuters/University of Michigan's preliminary April read on confidence coming in at 82.6 versus 80.0 in March.