Friday Wrap - Holiday Rally

by: Roy Mehta

The Dow Jones Industrial Average jumped 205.0 points (+1.55%), the Standard & Poor's 500 index increased 24.3 points (+1.67%), and the Nasdaq finished up 51.1 (+1.94%) points. Volume on the NYSE spiked to 2.19 billion shares as it was expiration for many different products. Advancers beat decliners by a ratio of about 3:1.

Stocks began up after strong earnings from Research in Motion (RIMM, +10.9%) on Thursday night (full story) pushed markets higher in after hours trading. The Commerce Department said personal income increased 0.5% and spending jumped a greater than expected 1.1% (full story). Year-over-year core inflation however rose to 2.2%, outside of the Fed's unofficial comfort zone. The US 10-year Treasury note dropped 28/32 in price, now yielding 4.16%.

Every sector finished higher Friday, with basic materials (+2.7%), energy (+2.2%), tech (+1.6%) and financials (+1.8%) having the strongest days. Crude rose $2.25 to $93.31/barrel. Circuit City (CC, -28.7%) reported a wider than expected loss (full story). Merrill Lynch (MER, +1.9%) got a boost after a newspaper said it may get a $5 billion capital injection from Singapore's sovereign wealth fund Temasek Holdings (full story).

Monday will be a half day for the markets. Have a great weekend.

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