Fourth week of losses for Dow and S&P 500

Dow Jones:12,442 (+38.82) S&P 500:1,331 (+5.41) Nasdaq:2,797 (+13.94)

THE DOW and S&P 500 closed out their fourth week of losses with a small gain on yesterday, but only with the help of a weaker dollar boosting metals prices and basic materials stocks.

Thin trading made for a lacklustre day on Wall Street, with desks short-staffed before the Memorial Day holiday that will keep US markets closed on Monday. Volume was the second-lightest so far this year.

The greenback fell broadly after weaker than expected US consumer spending and housing data stoked worries that the economic recovery is losing momentum. The US Dollar Index fell 1 per cent, its largest drop since January 13th.

Freeport-McMoRan Copper Gold Inc rose 2.7 per cent to $51.73. The S&P materials sector index added 1.03 per cent as the dollar’s decline helped lift the prices of metals and other commodities. The Reuters-Jefferies CRB index was headed for a third straight week of gains.

The Dow Jones industrial average added 38.82 points, or 0.31 per cent, to 12,441.58. The Standard & Poor’s 500 Index rose 5.41 points, or 0.41 per cent, to 1,331.10. The Nasdaq Composite Index gained 13.94 points, or 0.50 per cent, to 2,796.86.

For the week, the Dow lost 0.56 per cent, the SP shed 0.16 per cent and the Nasdaq dropped 0.23 per cent.

It was the fourth straight week of losses for both the Dow and the S&P 500. For the Nasdaq, it was the third decline in the last four weeks.

About 5.44 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, the second-lowest trading volume so far in 2011 by a thin margin. It fell way below last year’s estimated daily average of 8.47 billion.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of nearly 3 to 1, while on the Nasdaq, nearly two stocks rose for every one that fell. Bank stocks led gains in Europe and also boosted the US market. Bank of America, which had the heaviest turnover on the New York Stock Exchange, rose 2 per cent to $11.69. It was the Dow’s biggest percentage gainer.

Medco Health Solutions Inc will lose a major pharmacy benefit contract to CVS Caremark Corp starting next year, a setback that drove its shares down 9 per cent to $58.66. CVS shares rose 1.7 per cent to $38.80. – (Reuters)