Stocks see profit takingFriday, but manage strong gains for the week. The Dow ($INDU) lost 22.07 points to a level of 9,605.41. The S&P 500 ($SPX) fell 1.41 points to 1,042.73. The Nasdaq ($COMPQ) gave up 3.12 points to 2,080.90. Volume was moderate on the session with the NYSE trading 1.39 billion shares and the Naz turning over 2.35 billion shares. Market breadth was mixed on the session with the Big Board seeing winners outpace losers by a 17-to-13 margin. However, on the Naz, losers edged winners by a 16-to-11 margin.

Traders took some profits heading into the weekend, ending a five-session win streak. Losses occurred despite some positive economic data in Asia and a raised outlook from FedEx (FDX). Data on consumer sentiment for early September was also better than expected, but a decline in crude prices hurt stocks in the oil services sector. Despite Friday's mild declines, the major market indices all gained greater than 1.75 percent with the Naz up 3.08 percent on the week and up a very solid 31.95 percent year to date.

Crude prices closed Friday's session at $69.24, a decline of 3.75 percent. Prices fell on the view oil is priced more on sentiment than on fundamentals, especially with the commodity up sharply from its low near $33 back in December. Oil service stocks declined on the session with ExxonMobil (XOM) and Chevron (CVX) down one percent. However, Schlumberger (SLB) rallied 3.35 percent on an upgrade at Goldman Sachs to "Buy."

FDX shares rallied on the session with the stock up 6.41 percent to $77.32. The package delivery company raised its outlook for its fiscal first quarter earnings. FDX now sees earnings of 58-cents a share thanks to strength in international shipments and cost cutting. Nonetheless, earnings are still expected to fall 53 percent from the year ago period. FDX shares have a 52-week range from $34.02 to $96.99.

Shares of Motorola (MOT) rallied on the session, rising 8.91 percent to $8.68. The company's new cell phone developed in connection with Google (GOOG) is generating positive comments from analysts. In fact, RBC gave MOT shares a "Sector Perform" rating and raised its price target to $10.

The University of Michigan reported that its index on consumer sentiment rose to 70.2 in early September from 65.7 in August. This exceeded expectations for a more moderate gain to 67.0. The fact that most economic reports are pointing to a recovery is helping sentiment, but until the jobs market shows stronger improvement, sentiment is not likely to return to reading above 80.

Economic data will be a focus next week with reports on retail sales, housing starts and industrial production all on tap. Next Friday is also quadruple witching and this would lead to some volatility during the week.

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