Wrap Up: U.S. Stock Market


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July 30, 2010 11:28 p.m. EST

Topics: business, market and exchange, economy, business and finance, securities, United States
Mitchell Jaworski - AHN News Reporter

New York, NY, United States (AHN) - U.S. markets closed mixed on Friday following second quarter Gross Domestic Product (GDP) results that were just shy of estimates. However, the major indices did book their biggest monthly gain in a year.

For the month of July, the Dow Jones Industrial average rose 7.1 percent as a slew off better than expected earnings reports helped propel the blue chip average. The last time the Dow rose more than 7 percent for a month was in July 2009, booking a 7.6 percent gain.

The majority of companies making up the Dow average reported better than expected quarterly earnings, with Aloca (NYSE: AA) kicking things off earlier in the month, and big names such as, Chevron (NYSE: CVX), Microsoft (NSDQ: MSFT) and Caterpillar (NYSE: CAT) all posting strong results.

The S&P 500 tacked on 6.9 percent for the month, also its best gain since a 7.3 percent rise in July of last year. Thus far, about two-thirds of companies making up the S&P index have reported second quarter earnings, with 75 percent posting better than expected results.

On Friday, the Commerce Department said the economy grew at an annual pace of 2.4 percent, slightly less than the 2.5 percent expected by economists. The rise follows a 3.7 percent jump in the first quarter.

The news pressured stocks early, with the major indices opening down more than 1 percent. However, stocks rallied and finished near the flat line.

Michigan Consumer Sentiment was also released Friday morning, registering a 67.8 reading for July, ahead of estimates for 67.3.

Elsewhere, BP announced earlier in the week that Bob Dudley would replace Tony Hayward as chief executive of the firm. The move comes after Hayward came under fire for some of his words and actions throughout the oil spill crisis.

Next week will see a slew of economic data, with all eyes focusing on Friday’s payrolls number. Economists are expecting the Labor Department to report a net loss of 73,000 jobs for July.

U.S. auto makers are also set to report sales results for July, along with U.S. retailers. Retail sales are expected to be up 3.7 percent for the sector.


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