Stocks Log Weekly Loss; Apple Ends at $700
Stocks erased their gains in the final hour of trading to finish narrowly mixed Friday as investors shrugged off earlier optimism over reports that Spain might request a bailout.
Stocks finished in the red for the week. Despite the lackluster weekly performance, major averages are up nearly 4 percent across the board so far this month.
Major U.S. Indexes
|Last||1 Week % Change||MTD % Change||QTD % Change||YTD % Change|
The Dow Jones Industrial Average slipped 17.46 points, or 0.13 percent to close at 13,579.47, dragged by Coca-Cola .
Kraft will be replacedby UnitedHealth Group on the Dow Jones after the market close.
The S&P 500 erased 0.11 points, or 0.01 percent to finish at 1,460.15. The Nasdaq squeezed out a small gain of 4 points, or 0.13 percent, to end at 3,179.96, after hitting its highest level since November 2000 earlier in the session.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, ended near 14.
For the week, the Dow slipped 0.10 percent, the S&P 500 dipped 0.38 percent, and the Nasdaq erased 0.13 percent. Alcoa was the biggest weekly blue-chip laggard, while Kraft gained.
Seven out of the 10 key S&P sectors were negative for the week, led by financials. Telecoms rallied more than 2 percent.
“The post-Fed bounce has become more subdued but it has stayed in the market, which is more indicative of the tone in the market,” said Quincy Krosby, market strategist at Prudential Financial. “Worries over Europe have been hovering over the market—but [Spanish reform] talks are going on, which is giving the market some comfort…we’ve also seen the euro rise.”
Meanwhile, German Finance Minister Wolfgang Schaeuble said that Spain did not need a sovereign bailout on top of the package already agreed for its banks because it was on the right path to regain the confidence of markets.
Apple eked out a gain to close above $700 a share as the tech giant's latest iPhone 5 hit stores around the globe, with mobile carriers reporting record demand. AT&T , VerizonWireless and Sprint Nextel , which all support the new iPhone, finished higher. (See: Apple's iPhone 5 Launches Across the World)
Meanwhile, Research In Motion tumbled to near nine-year lows after the BlackBerry maker announced service outages in Europe, the Middle East and Africa that lasted several hours.
Stocks have been largely flat this week, following a sharp Fed-fueled bounce in the previous week that propelled major averages to multi-year closing highs.
“The test for the market now will be earnings season," said Krosby. "Will market maintain its positive bias if guidance continues to be negative?”
Some major industry bellwethers including FedEx and Intel lowered their outlooks earlier this month, citing a weak global economy.
Alcoa , which marks the unofficial start to earnings season, is scheduled to report on October 11.
Among earnings, Darden rallied after the parent company of Olive Garden posted earnings that topped estimatesand reaffirmed its sales and profit forecast for the year.
KB Home jumped after the homebuilder posted a surprise profit, but the company still reported revenue that fell short of expectations.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
On Tap Next Week:
MONDAY: Chicago Fed nat'l activity index, Dallas Fed mfg survey, Fed's Williams speaks, Caterpillar analyst mtg; Earnings from Lennar
TUESDAY: S&P Case-Shiller home price index, USDA food prices outlook, consumer confidence, FHFA home price index, Richmond Fed mfg index, 2-yr note auction, RIM developers conf.
WEDNESDAY: Weekly mortgage apps, new home sales, oil inventories, 5-yr note auction
THURSDAY: Durable goods orders, GDP, jobless claims, pending home sales, 7-yr note auction, farm prices; Earnings from Discover Financial, Nike, Accenture, Research In Motion, Micron
FRIDAY: Personal income & outlays, Chicago PMI, consumer sentiment; Earnings from Walgreens
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