Stocks rallied right out of the gate as investors welcomed a rebound in Chinese manufacturing and an unexpectedly strong report on U.S. manufacturing activity. The rally was broad-based. Apple was up 2.8% as the company held its annual music-themed special event. The focus shifts to jobs this morning when the government’s report on initial claims comes out. Investors will also take in the latest readings on factory orders and pending home sales.
FEAR METER: The S&P500 implied volatility plunged as recovery fears faded away.

Stocks were supported earlier in the session by a larger-than-expected rise in consumer confidence and a jump in U.S. home prices. But the tone turned bearish as investors weighed meeting minutes from the Federal Reserve against upbeat economic reports. They are worried that the weak job market will continue to weigh on consumer spending — which drives the bulk of economic activity. Tech stocks ended the month on a lackluster note with semiconductor stocks among the biggest decliners. The uncertainty surrounding the economic outlook and historically low trading volumes led to increased volatility.

IN FOCUS: Economic reports include an index of nationwide manufacturing activity and a report on private sector job cuts in August.
FEAR METER: The S&P500 implied volatility jumped amid worries about the economic recovery.

Stocks fell sharply as the tone on Wall Street turned bearish ahead of big economic reports due later this week. Volume is expected to be light this week. Investors are gearing up for the government’s monthly jobs report, due before the opening bell Friday. A key problem in the market is that the retail investor has withdrawn from the market, analysts say. All S&P large-cap sectors were lower, led by financials, consumer discretionary and industrials. Intel fell 1.6% after the company inked a deal to acquire the wireless unit of German chipmaker Infineon Technologies. HPQ (+1.47%) was the only stock trading higher among the blue-chip index.

IN FOCUS: Consumer confidence before the market opens. Reports on home prices and regional manufacturing activity are also due in the morning. Later, Fed will release minutes from its most recent policy meeting.
FEAR METER: The S&P500 implied volatility surged.

Stocks rallied Friday after Bernanke said the Fed was willing to do what it takes to stabilize the recovery.
The GDP reading came in slightly better than expected, stocks managed to end the session on a positive note, rallying more than 1% on the news. Techs and industrials were the week’s worst performers, while utilities and telecoms were the best. INTC warned that third-quarter earnings would likely fall short of expectations amid weak PC demand. Investors are looking for any little bit of a positive sign they can get in the wake of all this poor economic data. Jobs report, along with a reading on consumer confidence and more manufacturing data due next week, will either add fuel to the fire or calm some fears about an economic slowdown.
IN FOCUS: A government report on personal income and spending is due before the opening bell.

FEAR METER: The S&P500 implied volatility dropped.

The market erased earlier gains as worries about a sputtering economy overshadowed a better-than-expected report on jobless claims. An earlier bounce lost steam as investors turned their focus to the economy, bracing for the latest reading on second-quarter gross domestic product due early Friday. Dell said data-storage company 3PAR has accepted its $1.6 billion takeover bid. But after the market close, rival HP said it has sweetened its bid, topping Dell’s earlier offer. Losers outnumbered winners by nearly two-to-one on both the New York Stock Exchange and the Nasdaq.

FEAR METER: The S&P500 implied volatility inched higher.

Stocks finished higher, following another round of dismal housing and durable goods data. New home sales unexpectedly plummeted to the lowest level on record in July, dropping 12.4%. The bad news had been already priced in. Stocks are extraordinarily cheap and oversold at this point, but the question is, are they sufficiently cheap to discount the economic weakness. Tech stocks ended up. The sector, along with the broader market, remained on edge as the morning’s slate of economic reports added to investors’ unease about the U.S. recovery.
IN FOCUS: The government releases its weekly numbers on first-time unemployment filers.

FEAR METER: The S&P500 implied volatility slipped.

A worse-than-expected plunge in existing home sales reignited fears about an economic slowdown. Declines were led by tech, finance and healthcare stocks. Some bargain hunting helped the indexes ease off lows. The market approached short-term oversold levels. Dell is preparing to sweeten its offer for 3PAR. Shares of 3PAR gained 3.6%, while Dell fell 3%. All three indexes closed at their lowest level in seven weeks.

FEAR METER: The S&P500 implied volatility rose to 25.

Merger and acquisition activity was treated as a bullish sign as stocks climbed almost 1%, but technical resistance sent the broader market back to the neutral line. Tech stocks fell 1.0%. Tech’s weakness was even more pronounced in the Nasdaq, which lagged its counterparts for the entire session. Economic data has been showing gradual signs of weakness there’s still an overshadowing concern that will likely keep any rally narrow and in a defensive tone. Trading volume was unimpressive amid this session’s lackluster action.

FEAR METER: The S&P500 implied volatility inched lower.

Stocks largely ended down Friday. The moves came amid light trading and continuing worries about the economic recovery and bearish action in expiring August options. The economy is desperately short of confidence and visibility and the willingness to take risk. The markets are coming off two weeks of losses as traders have been struggling to find a balance between upbeat company news and downtrodden data on jobs, manufacturing, and other economic indicators. The tech-heavy Nasdaq turned slightly higher. Semiconductors closed up 0.4% thanks to leadership from Marvell (MRVL) which reported in-line earnings for the latest quarter, and announced a $500 million share repurchase program. Hewlett-Packard (HPQ) reported in-line earnings, while Dell (DELL) posted upside surprise. Most of the key S&P 500 sectors fell, led by energy, industrials, and telecom, but utilities, technology, and consumer staples turned higher.

FEAR METER: The S&P500 implied volatility slipped.

Disappointing numbers on weekly jobless claims, manufacturing in the Philadelphia region and leading indicators renewed economic jitters. Intel said it will acquire security software maker McAfee for $7.68 billion. Shares of Intel slipped 3.3%. After the close, Dell reported higher earnings and revenue that beat analysts’ forecasts. But shares of Dell fell about 1% in after-hours trading after losing 1.2% during regular hours. Also after the bell, Hewlett-Packard reported quarterly earnings and sales that strongly topped its year-ago results. The stock dipped 0.3% in after-hours trading, after it fell 1.5% during the day. Market breadth was negative.

FEAR METER: The S&P500 implied volatility jumped.