Market Report: Summers Withdraws Name
The three major indexes posted their second-straight week of gains and so far this month, all three are up more than three percent.
The Dow Jones Industrial Index rose 453.56 to finish the week at 15,376.06, its second best weekly gain this year. Meanwhile the NASDAQ saw a 1.7 percent gain finishing the week up 62.17 to 3,722.18, and the S&P 500 closed the week up just under 2 percent to finish at 1,687, a 32.82 gain.
Disney and Microsoft were the big gainers for the Dow this week, but the biggest news for the index was a company shake-up. Starting September 23, the Dow will no longer include HP, Alcoa, or Bank of America, while Nike, Goldman Sachs and Visa will be joining the 30-stock index.
A big reason behind the move to add larger stocks was decreasing IBM's influence.
Gains this week came despite some disappointing reports.
Consumer confidence dropped to a five-month low of 76.8, and retail sales rose only 0.2 percent in August, which is the smallest gain in four months.
In some other market news, Dell is going private, as shareholders agreed to sell the company to founder Michael Dell, who will work to turn the company around. At the same time, social media giant, Twitter announced it has filed paperwork to go public in the near future.
Word that the U.S. and Russia have begun constructive talks about Syria led to a drop in crude oil and gas futures this week, meaning you can expect gas prices to decrease in the near future. Prices for Columbia are around $3.17 for a gallon of regular, below the Missouri average of $3.33
As we near the thick of harvesting season, the USDA raised its expectations for corn output, which lowered December future prices to $4.59/bushel, while soybeans fell 1 percent to $13.815/bushel.
Those prices are down $3 and $4 respectively from the drought-ridden season last year.
This week is all about the fed and the news has already started as Larry Summers is withdrawing his name from replacing Ben Bernanke as head of the Federal Reserve, which makes Janet Yellen the front-runner now.
This week the Fed will meet to discuss interest rates and whether it should begin pulling back on its bond buying. Some experts believe tapering back the buying would hurt the recovering economy .Initial jobless claims come out on Thursday and housing permits and housing starts, which is the registered start of a new building are released Wednesday. Those numbers will show how quickly the economy is improving.