Sam Collins

Nasdaq's Failure to Hold Triggers Negative Signals

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July was the best month for stocks in seven years, but Friday was barely positive with concern that a double dip in the economy in 2010 could put a halt to the rally. Many analysts think that consumer spending will have to improve since it makes up 2/3 of the economy.

The Commerce Department reported that Gross Domestic Product fell at an annual rate of 1% in Q2, but since that was smaller than expected it was greeted as a minor positive. But the department also revised Q1 to show a bigger decline than previously reported.

On Friday materials firms were the leading group. Newmont Mining rose 3.8% and Alcoa (AA) rose 2.6%. Disney (DIS) missed Q3 estimates and fell 4.2%, Las Vegas Sands (LVS) fell 16% after reporting its 6th loss in a row, and Dun & Bradstreet (DNB) missed estimates and fell 13%. McAfee (MFE) rose 4.8% as it beat analysts' estimates and Beckman Coulter (BEC) exceeded estimates and jumped 11%.

At the close the Dow Jones Industrial Average was up 17 points to 9,172, the S&P 500 gained a point to 987, and Nasdaq fell 6 to 1,979. The NYSE traded 1.5 billion shares with advancers ahead by 8-to-5. On Nasdaq 732 million shares traded but decliners slightly outnumbered advancers.

For the week the DJIA gained 0.9%, the S&P 500 was up 0.8%, and Nasdaq rose 0.6%. For the month of July the Dow gained 8.6%, the S&P was up 7.4%, and Nasdaq gained 7.8%.

On Friday September Crude Oil rose $2.51 to $69.45 a barrel, and the Amex Energy SPDR (XLE) gained 49 cents to $50.62. Both Oil and Gold advanced on weakness in the dollar. August Gold rose $18.80 to $953.70 an ounce, and the PHLX Gold/Silver Index (XAU) jumped $5.65 to $148.62.