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Friday the 13^th shows fails to create fear as stocks close a bullish week with gains. The Dow ($INDU) added 73.00 points Friday to a level of 10,270.47. The S&P 500 ($SPX) gained 6.24 points to 1,093.48. The Nasdaq ($COMPQ) tacked on 18.86 points to 2,167.88. Volume was light once again with the NYSE trading just 971.4 million shares and the Naz turning over 1.90 billion shares. Market breadth was positive by a 22-to-8 and 18-to-9 margin on the Big Board and Naz respectively.

The major market indices gained ground Friday, ending the week with solid gains. All three major market indices gained at least 2.25 percent this past week, although the key 1,100 resistance level on the SPX held. The bulls have to be pleased with Friday's advances despite a disappointing consumer sentiment report. Strength came in the form of earnings in the retail sector, along with a better than expected report from Disney (DIS).

Disney shares gained 4.78 percent to close at a new 52-week high gained 4.78 percent to close at a new 52-week high of $30.44. The entertainment company beat earnings and revenue estimates in its fiscal fourth quarter. DIS made 43-cents a share, excluding one-time items, which was 5-cents above expectations. Revenues came in at $9.87 billion, easily surpassing estimates for sales of $9.285 billion. Disney was the top Dow performer, followed by McDonald's (MCD), up 2.28 percent; and American Express (AXP), which rose 2.13 percent.

Retailers were in the news Friday following the release of earnings from many in the sector. On Thursday, Wal-Mart (WMT) beat expectations, but its cautious outlook was a concern. Abercrombie & Fitch (ANF) was able to beat expectations as well, which pushed the teen retailer's shares up 10.45 percent to $40.60. JC Penney (JCP) shares also rallied, up 6.23 percent to $31.22. JCP reported a decline in profits, but traders were pleased with the company's raised outlook. Nordstrom (JWN) shares were not able to close in the black, falling 1.48 percent to $34.00. The department store missed expectations, though it did raise it outlook. Overall, the Retail HOLDRs (RTH) gained 0.77 percent to $94.50.

Economic news was a bit heavier Friday with data on consumer sentiment, import and export prices and international trade all reported. The mid-month reading on consumer sentiment as measured by the University of Michigan fell 4.6 points to 66.0 in November. This was much worse than the mild rise expected. Consumers remain concerned about the jobs market and this is taking a toll on sentiment. Next week, traders will get a plethora of economic news, including data on housing and inflationary pressures, as well as retail sales data and the industrial production release.

Jody Osborne
Senior Writer & Options Strategist
Optionetics.com ~ Your Options Education Site

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