Market Summary

After falling the prior two weeks, Wall Street recovered those losses and then some by the closing bell Friday. Markets jumped after being slightly negative in the premarket following an upgrade in tech heavy weight IBM. The Dow Jones Industrial average closed up 78 points, or 0.8%, to 9,864.94; a new high for the year. The S&P 500 was up 6 points, 0.6%, to 1,071.49, while the Nasdaq Composite Index rose 15 points, or 0.7%, to 2,139.

For the week, the Dow gained about 4%, its best since the week of July 20, when it was also up 4%. The S&P 500 finished up 4.5% and the Nasdaq up 4.5%.

Crude oil closed up 8 cents to $71.77 a barrel on the NYMEX, while gold fell $7.70 to $1,048.60 an ounce. The 10-year Treasury note was yielding 3.38%, a 12 basis point increase.

Trade Deficit Narrows on Weak U.S. Demand

Exports rose for the 4th straight month on global demand and a slumping dollar, sending the trade deficit to a narrower than expected $30.7 billion in August; a 3.5% decline. The sale of farm products and autos sent exports of goods and services up 0.2 percent to $28.2 billion, the highest level since December. Slumping demand for foreign oil, which fell 5.7%, was reflected in a 0.6% drop in imports, totaling some $158.9 billion.

Big Week of Earnings Ahead: 10K Plus By Weekend?

Tuesday: Johnson & Johnson (JNJ), Intel (INTC). The last comes after the close. Their discussions on the economy are important. Their guidance will be more important. If Intel’s guidance about profits and sales is strong, the stock market could have a big day on Wednesday.

Wednesday: JPMorgan Chase (JPM) and Abbott Laboratories (ABT).

Thursday: Goldman Sachs (GS) and Citigroup (C) IBM (IBM) and Google (GOOG). Goldman Sachs shares are up 124% this year alone. If Goldman misses estimates — the consensus is $4.20 a share — watch out. IBM was the Dow’s best performer on Friday after an upgrade.

Friday: General Electric (GE) and Bank of America (BAC). Toss in Mattel (MAT) as well because it will offer a peek at the upcoming holiday shopping season. GE shares have risen at least 10% every month since February and are fairly close to hitting their 2008 close of $16.20. GE’s guidance will be very important. Watch Bank of America for two things: a successor for CEO Ken Lewis (if one isn’t announced beforehand) and how much Merrill Lynch is contributing to its bottom line.