Friday's Closing Update

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Includes: DIA, DVN, NVDA, QQQ, SPY
by: Midnight Trader

4:06 PM, May 8, 2009 --


DJIA up 164.80 (1.9%) to 8,574.65

S&P 500 up 21.84 (2.4%) to 929.23

Nasdaq up 22.76 (1.3%) to 1,739.00

GLOBAL SENTIMENT

Nikkei +0.5%

Hang Seng +1.0%

FTSE +1.4%

UPSIDE MOVERS

(+) MCD gains on April sales.

(+) C is higher after stress test results.

(+) FITB among the regional bank leaders after stress tests.

(+) AXL gets upgrade.

(+) VNUS sold to Covidien.

DOWNSIDE MOVERS

(-) BBY downgraded

(-) LCC prices stock, notes offerings

(-) NVDA posts loss but beats estimates

(-) ANX tumbles on study results.

MARKET DIRECTION


Bank stocks powered a healthy upside run through Friday's regular session, with the major U.S. averages ending near their day highs - accumulating gains between 1.3% and 2.4% on the day. Traders prepped for the upward swing Thursday night after the government declared that 10 of 19 banks would need about $75 billion in additional capital following stress tests performed over the last several weeks. The number was below more pessimistic expectations. Better-than-expected jobs data also helped boost buyers' confidence as nonfarm payrolls showed a decline of 539,000 in April, below the 610,000 expected by Wall Street.

Looking forward to next week, earnings season rolls on. Among companies reporting results are: Priceline.com (NASDAQ:PCLN), Applied Materials (NASDAQ:AMAT), BMC (NASDAQ:BMC), CA (NASDAQ:CA), Macy's (NYSE:M), Whole Foods Market (WFMI), Agilent (NYSE:A), Kohl's (NYSE:KSS), Nordstrom (NYSE:JWN), Wal-Mart (NYSE:WMT), and Abercrombie & Fitch (NYSE:ANF).

On the economic front, traders will see trade balance and Treasury budget data on Tuesday; import/export prices, retail sales data, business inventories and crude inventories on Wednesday; initial claims on Thursday; and CPI, capacity utilization, industrial production and Michigan sentiment on Friday.

In today's market, the jobless numbers suggested that the labor market may be stabilizing, but the unemployment rate now stands at 8.9%, the highest since September 1983.

In company news, Nvidia Corp. (NASDAQ:NVDA) shares were chopped lower and weighed on the Nasdaq after the graphics chip maker reported a 42 percent drop in revenue and a quarterly loss from a steep compensation charge. Excluding the charge, Nvidia reported a loss totaling 9 cents per share, better than the 10 cent loss analysts called for.

Energy stocks, including Devon Energy (NYSE:DVN), made gains as crude oil futures held near $58 per barrel after the jobs report was not as bad as investors expected. The news has helped lift sentiment that the economy has seen the worst of the recession.