By MarketWatch
U.S. stocks overcame an early decline on Friday and managed to end July with significant gains and buck a slowdown in second-quarter economic growth.
The Dow Jones Industrial Average the month 7.1% higher -- the first positive month for U.S. stocks since April and their best month since last July, when stocks were in the midst of a mighty bull run.
Investors have been greeted by a strong set of second-quarter earnings, a major source of encouragement after spending much of May and June fretting over the impact of a debt crisis in Europe and China's efforts to slow its growth.
Keep on top of the news over the weekend with us. Plus, MarketWatch features a look at the sleuthing that short-sellers use to u uncover accounting gimmicks by U.S. companies.
And check out our Week Ahead videos for a preview of all the big news events coming up in Asia, Europe and the U.S.
-- Greg Morcroft, assistant managing editor.
Asia's Week Ahead: Focus on Toyota, Cathay Pacific
U.S. Week Ahead: More Earnings; Data on Tap
GDP slows in second quarter to 2.4% rate
Market shrugs off poor GDP data
Michael Casey discusses U.S. markets finishing mixed after GDP data from the morning was weaker than expected.
The U.S. economy lost momentum in the second quarter, according to figures released Friday, which may raise concerns of an extended soft patch if not an outright contraction. Real gross domestic rose at a 2.4% annualized rate in the second quarter, well below the average 4.4% increase over the past six months. The 2.4% increase in GDP was close to the 2.5% expansion expected by economists surveyed by MarketWatch. Read MarketWatch's economic coverage.
FedEx turns hopeful as global economy strengthens
More evidence of an improving economic environment came when FedEx Corp. /quotes/nls/fdx (FDX 83.81, +1.95, +2.38%) raised its profit outlook and said it would again match employee payments into retirement funds. "It's definitely a positive sign that we are seeing improving global economic growth," said Jim Corridore, an analyst with S&P Equity Research. "Restoring the 401(k) match is also a sign of optimism that we're not going to see a double-dip recession." Read more about FedEx results on MarketWatch.
Banks' results reveal improving credit but tight margins
A slew of U.S. financial companies that reported earnings in the last two weeks showed improving credit trends and operating earnings, while also wrestling with interest margin pressure due to the government's efforts to depress mortgage rates, analysts said. A majority of banks beat earnings estimates with solid second-quarter results after credit trends improved across the industry, while banks squeezed as much as they could from their revenues. Read MarketWatch coverage of bank earnings.
BP chooses Dudley, an American, to turn its fortunes around
BP /quotes/comstock/13*!bp/quotes/nls/bp (BP 38.37, +1.18, +3.17%) has a new chief executive. Robert Dudley is an industry veteran with wide-ranging qualifications, but it was his American passport as much as his in-depth knowledge of Russia and his green credentials that sealed the deal for the board. By mutual agreement, Tony Hayward will step down. "The tragedy of the Macondo well explosion and subsequent environmental damage has been a watershed incident," BP Chairman Carl-Henric Svanberg said in a statement. BP will be a "different company going forward, requiring fresh leadership." Read MarketWatch coverage of BP's new CEO.
More Top Ten
| Sept. 4, 2010 | The week's Top 10 videos on MarketWatch | |
| Sept. 3, 2010 | MarketWatch's Top 10 stories: Aug. 30-Sept. 3 | |
| Aug. 28, 2010 | The week's Top 10 videos on MarketWatch | |
| Aug. 27, 2010 | MarketWatch Top 10 stories August 23 - 27 | |
| Aug. 20, 2010 | MarketWatch's top stories for week of Aug 16-20 |
Chuck Jaffe
On Mutual Funds