The Dow Jones Industrial Average closed up 42 points, or 0.4%, at 10830. But the blue-chip index fell 0.3% for the week and snapped its four-week winning streak. J.P. Morgan Chase was the Dow’s top gainer, rising 2%. Bank of America gained 1.7%.

Hewlett-Packard fell 3.1% after the company appointed Leo Apotheker as its new chief executive. Apotheker, former SAP CEO, replaces Mark Hurd, who resigned last month amid a sexual-harassment investigation.

The Nasdaq Composite edged up 0.1% to 2371. The Standard & Poor’s 500-stock index rose 0.4% to 1146, led by the energy and materials sectors. The index earlier climbed to as high as 1150. Traders noted that the S&P 500 in recent days has risen above that level but not decisively, which has added to the market’s volatility.

read more…

MADRID (MarketWatch) — European stocks were mixed, with some gains eroded on Friday afternoon after a series of U.S. economic data, including the ISM index of factory, which fell to 54.4 in September from 56.3 in August. Oil and mining stocks remained high. The Europe Stoxx 600 index (ST:SXXP 259.09, -0.63, -0.24%) fell 0.08% to 259.56, the French CAC-40 index (FR:PX1 3,692, -23.09, -0.62%) fell 0.2% to 3,706.02. Hanging onto gains were the German DAX 30 index (DX:DAX 6,211, -17.68, -0.28%) , up 0.2% to 6,241.10 and the FTSE 100 (UK:UKX 5,593, +44.28, +0.80%) , which rose 0.8% to 5,595.36.

NEW YORK (MarketWatch) — Treasury prices edged down Friday, cutting into bonds’ weekly gain, after data on manufacturing, consumer sentiment, and spending sent mixed signals about the ability of the U.S. economy to keep growing.

Until the Federal Reserve’s next meeting in a little over a month, bond traders expect to keep reading each economic report to gauge whether it makes the central bank more or less inclined to resume big purchases of bonds in an attempt to support the economy.

“Strong data will force the market to adjust the odds for large-scale asset purchases, and weak data will potentially move up the timing or scale of the large-scale asset purchases,” RBS strategists John Briggs and Bill O’Donnell wrote in a note.

Yields on 10-year notes (UST10Y 2.50, -0.01, -0.56%) , which move inversely to prices, rose 1 basis point to 2.52%. A basis point is 0.01%.

They turned down in the wake of the factory report after rising as high as 2.57% earlier.

From a week ago, 10-year yields are down from 2.61%, falling for a third straight week.

Yields on 2-year notes (UST2YR 0.42, -.00, -0.95%) declined 2 basis points to 0.41%, heading back towards an all-time low.

Two-year yields have declined a third week, from 0.44% last Friday.

Thirty-year bond yields (UST30Y 3.70, -0.01, -0.35%) rose 3 basis points to 3.72%. A week ago, they traded at 3.69%.

read more…

NEW YORK (MarketWatch) — The dollar fell Friday, hitting a six-month low versus the euro, after a report showing weakness in the U.S. manufacturing sector supported investors who expect the Federal Reserve to resume large-scale bond purchases in coming months to boost the U.S. economy.

The euro (EURUSD 1.3775, -0.0016, -0.1160%) rose to $1.3784, from $1.3633 in late North American trading Thursday.

This week, it’s advanced 2.1%.

The dollar index (DXY 78.11, +0.03, +0.03%) , a measure of the greenback against a basket of six major currencies, fell to 78.070, down from 78.779 late Thursday. It’s lost 1.7% this week.

“As long as a further round of quantitative easing from the Fed is on the table, then investors are not going to want to hold dollars,” said Kathleen Brooks, research director at Forex.com.

The dollar index fell 5.3% in September and declined 8.4% over the course of the third quarter — its biggest three-month drop since the second quarter of 2002.

The European single currency jumped 7.4% on the dollar last month, for its biggest monthly rise since December 2008.

read more…

(**)Note: exchange rate of U.S. Dollar affects performance of stock and bond mutual funds. E.g. falling dollar generally improves performance of C & I Funds (i.e. large-cap and international stocks) and hurts S & F Funds (i.e. small-cap stocks and bond funds).

(MONEY Magazine) — More companies are offering HSAs in which you can stash cash to cover your medical bills. Here’s what you need to know before signing up.

1. Your employer is more likely to offer this option.

When you get your open-enrollment packet in the next month or so, you may see something new on the benefits menu. Companies are increasingly offering a health insurance package that includes a high-deductible policy plus a tax-advantaged health savings account (HSA) in which you can stash cash to cover your medical bills.

Some 45% of large companies will be providing the option, up from 25% in 2007, reports human resources firm Towers Watson.

The appeal for you is lower premiums — typically 10% to 40% less than those of a traditional plan, says Roy Ramthun of HSA Consulting Services. Employers, meanwhile, like this plan because it gives you an economic stake in your own wellness.

read more…