Sept. 13 - Summary: The Dow gains 3 percent for the week, market prepares for upcoming Fed meeting; Gold succumbs to worst sell-off in two months; Social network stocks fall one-day after Twitter IPO tweet; Intel rallies after upgrade. Conway G. Gittens reports.
Blue chips put in their second best week of the year as economic data suggest the Federal Reserve can only modestly reduce its bond buying program next week - if at all. For the day, stocks were up across the board with the tech sector contributing the least. Back to the week now, The Dow surged 3 percent, while the Nasdaq's gain was not as robust. But gold suffered its biggest weekly drop in two months as the fear trade surrounding Syria backs-off. The American consumer points to an economy that still needs help. Retail sales bumped-up for the fifth straight month but August's gain was smaller than expected. Also, consumer sentiment so far this month is ticking lower. Some economists are trimming economic growth forecasts for the rest of the year. Separately, wholesale inflation was under control last month despite a spike in energy costs. It's a day later but all the corporate chatter remains focused on Twitter's IPO. When will it happen? Where will it list? What will be the ticker? How will it be valued? All those questions put renewed focus on social media stocks, and whether the money flowing into the sector is safe or at risk. Shares of Facebook, Yelp, Angie's List, LinkedIn - all down. Oddly enough, Zynga, which has been a long-term underachiever nudged higher. Jefferies upgrading Intel to "buy" from "hold", saying Intel is finally focusing manufacturing strength and research dollars on chips that will power tablets and other mobile devices. The upswing in Intel shares was one of the reasons behind the Dow's gains on Friday. Finally, European trade was mildly positive with deal-making lifting major indices.