Market Wrap-Up

It was an up and down week, to say the least, characterized by two 100-plus point drops on Monday and Tuesday and finishing with a 197-point rally to head into the weekend.

Financial services stocks weighed on trading all week. Equity shareholders of Freddie Mac and Fannie Mae fretted over whether the two mortgage giants would ultimately need a government bailout to keep them afloat (if the two went under equity shareholders would probably fare worse than bond holders). The concerns surrounding this sector spread to firms like Lehman Bros. and a series of regional bank stocks. Numerous reports on Friday speculated Lehman Bros. might be able to line up a buyer. Its shares gained ground on that speculation.

Oil was also a major influence on trading. A Department of Energy report released earlier in the week showed crude inventories increased by 9.4 million barrels the last week, a sign consumer may have stopped driving to avoid paying record gas prices. The price for crude dropped $2 a barrel on Wednesday. It recovered somewhat the next day when the U.S. signed an agreement with Poland over a missile base. Traders worried that deal could escalate tensions between the U.S. and Russia. But heading into the weekend the dollar strengthened against foreign currencies and oil dropped dramatically, falling almost $7 to the $115 level. Granted, it was a light day of trading.

Friday also saw some comments from two men that can move the market with their words: Federal Reserve chairman Ben Bernanke and investing legend Warren Buffett. Speaking at the Federal Reserve Bank of Kansas City's annual symposium in Jackson Hole, Wyoming, Bernanke gave some lukewarm comments about the current market.

"Although we have seen improved functioning in some markets, the financial storm that reached gale force some weeks before our last meeting ... has not yet subsided," said Bernanke. Buffett said on CNBC that stocks appeared cheaper than they were last year.

The Dow Jones Industrial Average closed Friday up 197 points to 11,627. It was off 30 points for the week.

Winners

Friday's speculation about Lehman Bros. finding a willing buyer popped the company's shares 8.8%. That increase translated into a big day for the iShares Dow Jones U.S. Broker-Dealers ETF. It gained 3.5% on the last trading session of the week.

As for the week, coal and solar industry investments were smart plays. The Market Vectors Coal fund gained 8.4% for the week and the Claymore/Mac Global Solar Energy ETF jumped 6.4%.

Losers

Energy-related ETFs pulled back Friday as crude sold off on a strengthening dollar. The United States Gasoline fund dropped 5.8%, the United States Oil fund lost 5.5% and the PowerShares DB Oil ETF decreased 5.3%.

As for the week, it was a poor one for regional banks. The concerns surrounding the titans of the financial services world have trickled down to these smaller players. The SPDR KBW Regional Banking ETF lost 7% the last five trading sessions.

The Week's Industry Headlines

Numbers Game
State Street released its monthly snap shot of the ETF Industry. Through July 31, 708 ETFs held $578 billion. In July there were 17 new funds launched and seven that were liquidated.

Launching Pad
Nuveen Investments added to its Elements line of ETFs with three funds that follow the stock-picking strategy of legendary Columbia University professor Benjamin Graham. The funds Benjamin Graham Large Cap Value Index-Total Return, Benjamin Graham Small Cap Value Index-Total Return, and Benjamin Graham Total Market Value Index-Total Return track indices of companies that have solid balance sheets and a stock price that is trading at a discount the foundations of Graham's investing philosophy.

Next Week's Notebook

Keep an eye on China. There could be an announcement on a government stimulus plan. That could move stocks there and impact the price of oil. Also, look for some clarity on the situation plaguing Fannie Mae and Freddie Mac.

Earnings & Conference Calls

Tuesday
Applied Signal Technology, Borders, Chico's FAS, Corinthian Colleges, Daktronics, Hain Celestial, J. Crew, LTX, Smithfield Foods

Wednesday
American Eagle, Brown Shoe, Charming Shoppes, Coldwater Creek, Dollar Tree, Finlay Enterprises, Jo-Ann Stores, Men's Wearhouse, Talbots

Thursday
ATA, Brown-Forman, Del Monte, Dell, Fred's, Gerber Scientific, Jamba Juice, LaBarge, Marvell Technology, Novell, PatSmart, Sears, Tiffany, Williams-Sonoma, Zale

Friday
Knightsbridge

Economic Data

Monday
10:00a.m. July Existing Home Sales
10:30a.m. August Dallas Fed Manufacturing Production Index

Tuesday
7:45a.m. Chain Store Sales
8:55a.m. Retail Sales
10:00a.m. July New Home Sales
10:00a.m. August Conference Board Consumer Confidence
10:00a.m. August Richmond Fed Manufacturing Index

Wednesday
8:30a.m. July Durable Goods

Thursday
8:30a.m. Initial Jobless Claims
8:30a.m. 2Q GDP, Preliminary
8:30a.m. 2Q Corporate Profits, Preliminary
10:00a.m. Business Barometer

Friday
8:30a.m. July Personal Income
8:30a.m. July Personal Spending
9:45a.m. August Chicago PMI

Quick Take

A look at how the industry's most popular ETFs did on Friday.