The stock market volatility continued as the market experienced gains of more than 2% with heavier volume on Tuesday but had declines Thursday and Friday leaving the Dow the S&P and the Nasdaq lower but not significantly so.
Medical companies continued to trend up with Amgen and Alexion Pharma beating analysts’ earnings estimates.
Unemployment rose with 51 000 jobs lost in July as nonfarm payrolls experienced the 7th straight drop. The jobless rate rose to a 4-year high at 5.7% as factories retailers and builders continued to cut staff.
U.S. automakers earnings were hit hard as sales continued to fall. Smaller cars are being preferred over trucks and SUV’s due to fuel costs.
Bad news continued in the financial sector as Merrill Lynch sold $8.5 billion of its stock wrote down $5.7 billion in assets and sold mortgage-related debt for pennies on the dollar while the Citi probe continued about auction-rate securities. Former Fed Chairman Alan Greenspan predicted a recession. I noticed that among all the turmoil the XLF the index which represents financial companies closed up slightly for the week.