NEW YORK (CNN/Money) -
U.S. stock markets fell for the second week in a row, capping off a volatile week with a quiet day of trade Friday, with technology buying boosting the Nasdaq but doing little for the broader market.
Next week's holiday-shortened trading week could bring further tumultuous trade in response to a plethora of economic news and what is likely to be light volume.
On Friday, the Nasdaq composite (up 11.96 to 1893.88, Charts) gained 0.6 percent, the Dow Jones industrial average (up 9.11 to 9628.53, Charts) gained almost 0.1 percent, and the Standard & Poor's 500 (up 1.63 to 1035.28, Charts) index closed just above 0.1 percent.
Stocks declined Monday and Tuesday on fears about global terrorism and the falling dollar, managed to bounce back Wednesday, then gave up the gains Thursday, setting the market up for a lower close on the week.
For the week, the Nasdaq fell 1.9 percent, the Dow industrials fell 1.4 percent, and the S&P 500 fell 1.4 percent.
"It's been a bad week, the second down [one] in a row," said Robert Long, vice president of investments at Melhado Flynn & Associates. "Everything good, from earnings to economic news, has been ignored by the market and instead the negatives -- the terrorism reports, the dollar -- have been what's in focus."
Traditionally, the last full week before the week of Thanksgiving is a strong one for the markets, with the S&P 500 gaining during that week for the last 11 years, according to the Stock Trader's Almanac. But that proved not to be the case this year. With the huge run stocks have had in 2003, some analysts speculate that the rally may be nearly tapped out.
The Dow and the S&P 500 hit 17-month highs in early November, while the Nasdaq hit an almost 21-month high.
"We have no economic numbers Monday and my sense is that the market is going to keep consolidating for the next few sessions, before we make a bottom and then build from there" said Tim Heekin, head of stock trading at Thomas Weisel Partners.
Tuesday and Wednesday bring a slew of economic news. Tuesday brings the revised reading on third-quarter gross domestic product growth, the November read on consumer confidence, and the October data on existing home sales. Wednesday brings at least nine economic reports, including personal income and spending for October, the revised read on consumer sentiment in November from the University of Michigan, and new home sales for October.
Next week is a shortened trading week. Stock markets will be closed Thursday for the Thanksgiving holiday, and will then close early, at 1:00 p.m. on the Friday after Thanksgiving. Treasury bond markets will be closed early the day before Thanksgiving, closed altogether on Thanksgiving, and close early the day after Thanksgiving. Commodities markets close early the day before Thanksgiving, and then are closed altogether on the holiday and the Friday after.
On the move
Merck (MRK: down $2.95 to $42.21, Research, Estimates) tumbled 6.5 percent after the Dow component said it has scrapped its experimental diabetes treatment because it was shown to cause cancer in mice. Following the news, Morgan Stanley downgraded the stock to "equal-weight" from "overweight." The stock was the NYSE's most-active issue.
Data storage provider Brocade Communications (BRCD: down $1.24 to $5.91, Research, Estimates) fell 17.3 percent and was the Nasdaq's most-active issue after the company reported earnings late Thursday of 2 cents per share, in line with estimates, but down from a year ago, on revenue that also fell from last year.
Late Thursday, Dow component Walt Disney (DIS: down $0.10 to $22.58, Research, Estimates) reported fiscal fourth-quarter earnings of 17 cents per share, excluding one-time gains, 2 cents better than the 15 cents per share analysts surveyed by First Call were expecting and up from a year earlier. However, with the stock up nearly 40 percent year-to-date, investors were reluctant to bid the stock higher.
Software maker Autodesk (ADSK: up $3.13 to $22.53, Research, Estimates) soared 16.1 percent after the company reported a higher-than-expected profit late Thursday that grew from a year earlier. Additionally, Merrill Lynch upgraded the stock to "buy" from "neutral."
In non-earnings related news, drugmaker Biovail (BVF: down $4.33 to $18.89, Research, Estimates) fell 18.6 percent in active NYSE trade one day after saying that U.S. regulators have begun an informal probe into its accounting practices.
Brokerage UBS began coverage of Dow stock McDonald's (MCD: up $0.29 to $24.97, Research, Estimates) with a "buy" rating, sending its shares up 1.1 percent. Other Dow gainers included AT&T (T: up $0.90 to $20.00, Research, Estimates), up 4.7 percent, Intel (INTC: up $0.49 to $32.32, Research, Estimates), up 1.5 percent, and Eastman Kodak (EK: up $0.42 to $24.44, Research, Estimates), up 1.75 percent.
Market breadth was positive. On the New York Stock Exchange, where 1.25 billion shares traded, advancing issues outnumbered decliners by nearly three to two. On the Nasdaq, where 1.58 billion shares changed hands, rising stocks edged falling ones by an eight-to-seven margin.
Treasury prices slid, with the yield on the 10-year note rising to 4.16 percent from 4.15 percent late Thursday. Treasury prices and yields move in opposite directions. The dollar slipped against the euro, but was little changed versus the yen.
NYMEX light crude oil futures fell 25 cents to settle at $31.61 a barrel. COMEX gold gained $2.30 to settle at $396 an ounce.
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