Market Summary

U.S. stocks fell on Friday after worse-than-expected quarterly results from computer maker Dell Inc and homebuilder D.R. Horton Inc (DHI) underscored that the road to recovery would not be smooth. The end result was a third straight day of losses for the street, as the Dow Jones Industrial Average lost 14.28, or 0.1 %, to 10,318.16. The broader Standard & Poor’s 500 index fell 3.52, or 0.3 %, to 1,091.38, while the Nasdaq composite index fell 10.78, or 0.5 %, to 2,146.04. The tech heavy Nasdaq was the hardest hit by the quarterly report by DELL after the bell on Thursday. The Russell 2000 index of smaller companies fell 1.00, or 0.2 %, to 584.68.

Despite the uneven and sloppy trading, the blue chips closed the week up 47.69, or 0.5 %, at 10,318.16. The Standard & Poor’s 500 index fell 2.10, or 0.2 %, to 1,091.38. The Nasdaq composite index fell 21.84, or 1 %, to 2,146.04.The Russell 2000 index fell 1.60, or 0.3 %, for the week to 584.68.

Worries about the economy sent the dollar up and crude down, as oil fell 74 cents to settle at $76.72 per barrel on the NYMEX. Short term yields fell as prices rose signaling higher demand, while further out maturities saw rising yields. Interesting combination and shows what the market is thinking about near term movement.

Geithner’s Days Numbered?

While Democrats have generally defended Geithner’s handling of the economy and the $700 billion Wall Street bailout, some are beginning to blame President Barack Obama’s administration for not doing enough to help Main Street voters. Geithner, who before his Treasury post was president of the Federal Reserve Bank of New York, also is becoming a target for those critics.

You may recall that Geithner’s appointment gave relief to the markets last fall to the tune of some 400+ points. The administration backed him despite his “Turbo Tax Tim” image of a cheat and a fraud. How would the street react if it became clear that he was out? If unemployment stays persistently high, he could be a scape goat, the Treasury Department has become a well known cabinet position for better or worse.