The Week In Review
6/10-6/14/13Week in Review: Stocks Endure Volatile Week
The major averages ended Monday's session largely unchanged. Before the open, Standard & Poor's raised its US outlook to Stable from Negative. The change contributed to a strong start, but buying interest tapered off shortly thereafter. Apple (AAPL 430.05, -5.91) swung from seeing a solid intraday gain to ending with a loss after unveiling a new mobile operating system and announcing the launch of a radio service at its Worldwide Developers Conference.
On Tuesday, the S&P 500 settled lower by 1.0% as all ten sectors ended in the red. Stocks began the day sharply lower as overseas concerns contributed to a rise in global interest rates, which, in turn, fueled the selling of equities. The Bank of Japan's decision to maintain its policy stance underwhelmed investors who expected the central bank to address recent bond market volatility. However, the lack of relevant commentary caused investors to sell bonds and equities in favor of the yen. The financial sector ended lower by 1.7% amid losses in all major components.
Equities began Wednesday's session on their highs, but the major averages were unable to hold their flat lines past the opening 90 minutes. The S&P 500 spent the entire day in a steady decline as minor bounces were met with aggressive selling. In addition, early weakness coincided with a decline in dollar/yen, as the pair dropped to 95.25, before recovering a portion of its losses. Cooper Tire (CTB 33.40, -0.42) jumped 41.1% after the tire maker agreed to be acquired by Apollo Tyres for $35 per share. The purchase price represents a 42.5% premium.
On Thursday, the S&P 500 settled higher by 1.5% after a daylong climb off its opening lows was aided by the defense of the 50-day moving average. Homebuilders displayed broad strength as the iShares Dow Jones US Home Construction ETF (ITB 23.89, -0.01) jumped 4.4% after the industry ETF spent the previous three weeks in a steady decline.