Moving on Up (Financial Week, October 10-14, 2011)

North American and European Markets rose significantly on Friday, closing out a strong week and posting gains in most sectors. In Friday morning trading, the Dow, Nasdaq and S&P were each up roughly 1%. By the closing bell on Friday, the Dow-Jones had gained 166.36 points to close at 11,644.49, an increase of 1.45%. The S&P gained 20.92 points to end the week at 1,224.58, having gained 1.74%. The Nasdaq was the biggest winner, gaining 47.61 points and ending at 2,667.85 with a gain of 1.82%.

In Canada, the S&P TSX followed suit, gaining 169.84 points, or 1.43%, to close at 12,081.73.

Britain’s FTSE 100 gained 62.98 points, or 1.17%, to close at 5,466.36, and France’s CAC 40 rose 30.95 points, 0.97%, closing at 3,217.89. The DAX was up 0.89%, after a gain of 52.36 points to 5,967.20. The Euro Stoxx 50 finished at 2,355.48, with a gain of 22.96 points, or 0.98%.

In contrast to the U.S. and Europe, Asian markets posted losses after a report on inflation in China. The Shanghai Composite faired the best, falling only 8.31 points, or 0.34%, to 2,430.48 at the close of trading. The Nikkei fell 75.29, or 0.85%, landing at 8,747.96. Hong Kong’s Hang Seng lost the most–256.02 points, or 1.36%–and ended the week at 18,501.79. Asian markets had been up on Wednesday, prior to the inflation report. The exception to the losses in Asia was India’s BSE Sensex, which gained 198.77 points or 1.18% to close at 17,198.77.

U.S. stocks had been mixed on Thursday. Financial sector stocks suffered after JPMorgan Chase issued a disappointing earnings report on Thursday, which negatively affected the shares of Chase, Bank of America, Morgan Stanley, Goldman Sachs and Credit Suisse.

Financial sector stocks could climb in the coming week, with major institutions such as Bank of America, Wells Fargo and Citigroup expected to report large-scale profit increases from the third quarter early on Monday morning.

Retail sales rose 1.1% in September, according to the U.S. Commerce Department’s most recent report, issued on Friday. That figure was twice as strong as projections.

Google stock was one of the top market movers on Friday, rising 5.85%, thanks in part to a very strong earnings report released on Thursday. Apple’s shares were up on Friday, thanks in part to sales of their new 4S iPhone. Apple closed at $422.00 per share, with gains of 3.32%. Hewlett-Packard shares also moved higher, gaining 1.87%, while Dell gained 1.59% and Intel gained 0.47%.

With consumer spending looking stronger and colder weather setting in, oil prices, which have been faltering recently, have begun to rebound. Heating oil rose 2.9%. Exxon and Chevron shares posted large gains, helping the Dow rise. Light, sweet crude for November delivery gained $2.57, closing at $86.80 per barrel, a three-week high. Compare Friday’s price of $86.80 per barrel for light, sweet crude with just $84.38 per barrel on Wednesday.

Gold for December delivery gained $11.30 to close at $1,680.80 per troy ounce. Silver closed up at $32.17 and copper closed at $3.41. Platinum and palladium were also up.

Livestock posted modest increases. Cocoa for December delivery gained +41.00, an increase in price of +1.56%. Cotton rose 2% to one 101.94. Corn, soybeans and wheat for December all rose on Friday.

Feel like you’re “working for peanuts”? Cheer up. Peanut product prices are expected to increase drastically near the end of 2011, due to a shortage in the peanut harvest caused by drought and growers choosing to grow more profitable crops. The price of one ton of peanuts has increased from $450 last year to $1,200 this year.

How the  Markets Closed on Friday, October 14, 2011: