Stocks End Mixed; Microsoft stifled Nasdaq 12 days rally

Wall Street had an amazing run this week, but the rally stalled on Friday. The Nasdaq Composite was up 12 days in a row before retreating today and the Dow plowed through the 9,000 mark for the first time since January this week. The Nasdaq fell on Friday, halting a 12-day run-up, following Microsoft Corp's disappointing quarterly results, but gains in pharmaceutical and energy shares lifted the Dow and the S&P 500 to fresh 8-month closing highs.

The Dow Jones industrial average rose 23.95, or 0.3 percent, to 9,093.24. The Standard & Poor's 500 index rose 2.97, or 0.3 percent, to 979.26. The Nasdaq composite index fell 7.64, or 0.4 percent, to 1,965.96.

For the day, both the Dow and the S&P 500 hit their highest closes since early November 2008. Since hitting a 12-year closing low of 676.53 on March 9, the S&P 500 has gained 44.7 percent. The Nasdaq, which closed at 1,268.64 on March 9, was up almost 55 percent from that level at Friday's close. The Dow has risen about 39 percent from its March 9 close at 6,547.05.
For the week:
The Dow is up 349.30, or 4.0 percent.
The S&P is up 38.88, or 4.1 percent.
The Nasdaq is up 79.35, or 4.2 percent.
For the year:
The Dow is up 316.85, or 3.6 percent.
The S&P is up 76.01, or 8.4 percent.
The Nasdaq is up 388.93, or 24.7 percent.

Shares of American Express fell after the company reported Thursday second-quarter net income were 27 cents a share, one cent higher than analysts' estimates. However the company said revenue for the quarter was $6.1 billion, well short of the $6.3 billion expected by analysts.
Despite the major drop in Microsoft and AmEx, stocks were only moderately lower - a sign on how bullish Wall Street traders have been since the start of earnings season. According to Thomson Reuters, 76% of the companies who have reported this earnings season have beaten analysts' expectations.

Traders said as long as there aren't any major red flags in the economy or in company reports, the market may continue to trend higher at least in the near term.
"You can't ignore a 11% move in stocks in nine days, this has been an incredible market," said a NYSE trader. "I think everyone is starting to feel a whole lot better."

Oil rises above $68 on economic optimism

Oil rose to top $68 a barrel on Friday on optimism a turnaround in the global economy would lift battered fuel demand. U.S. crude settled up 89 cents at $68.05 a barrel, the highest settlement since July 1. The gains extended a rally that has pushed prices up more than 14 percent since July 14.

Hopes for a rebound in the economy and demand have helped lift crude off lows below $33 a barrel hit in December, after slumping demand knocked oil from record highs near $150 hit in July 2008.

"The market is continuing to feel the strength of economic optimism from the greater financial markets," remarked an analyst. "I think the strength of the rally is derived mainly from the idea that as we enter the end of this year and early next year, further economic gains will kick demand back in. Sixty (dollars a barrel) is OK, but it is not going to lead to a rash of activity, whereas I think $70 might be a lot more encouraging,"