Market Wrap-Up

While most Americans were glued to the Democratic Convention and learning about the Republican vice presidential nominee, traders, at least those who weren't on vacation, were trying to decipher a series of government reports that gave conflicting reads on the state of the economy. Since the meat of the second quarter earnings season has passed, these reports weighed on trading all week.

On Wednesday and Thursday traders got decent information on durable goods orders, GDP growth and weekly jobless claims. And the market jumped 300-plus points during those two trading sessions. Heading into the weekend, though, the Commerce Department announced a decrease in personal income and a slowdown in spending, along with an uptick, albeit a small one, in core inflation. The Dow dropped 171 points Friday.

All week traders kept an eye on Tropical Storm Gustav, as it strengthened and moved through the Atlantic and appeared to be on a course through the Gulf of Mexico that would put in jeopardy energy platforms and, eventually, maybe even New Orleans. It didn't help that another storm seems to be brewing right behind it. On Friday, the price for a barrel of crude jumped around but eventually closed flat at the $116 level.

There was some corporate news for traders to consider. Shares of Fannie Mae and Freddie Mac gained ground as investors started to discount the need for a government bailout. Lehman Brothers also rallied when it was rumored to have found a strategic partner and a buyer for its investment management business. Dell announced a decrease in profits thanks to slowing global sales and price reductions. That bellwether brought down technology sector stocks.

At the close of the week, the Dow Jones Industrial finished at 11,544, an 82-point drop for the week.

Winners

Stocks in Japan rallied on the announcement of a government stimulus plan, a rise of factory output and on some of the positive news about the U.S. economy. The PowerShares FTSE RAFI Japan ETF jumped 3.9%.

As for the week, as Fannie and Freddie rallied, so, too, did financial stocks and, by proxy, housing ETFs. The iShares Dow Jones U.S. Broker-Dealers gained 4.6%. The SPDR S&P Homebuilders fund increased 5.2%.

Losers

On Friday, Dell announced an 11% increase in fiscal second-quarter revenue but a 17% decrease in net income. The pressure on its margins was due to a pullback in IT spending and discounting. Dell's lackluster results dinged technology stocks heading into the weekend. The iShares Dow Jones U.S. Technology fund lost 2.3% on Friday. Dell also helped make some tech ETFs the week's biggest losers. The last five trading sessions were particularly painful if you were betting on an industry rebound. ProShares Ultra Technology, an ETF that tries to double the returns of its underlying benchmark, actually lost 5.1% for the week.

The Weeks's Industry Headlines

Launching Pad
Invesco PowerShares announced plans to launch five new funds on Sept. 18. They include ETFs that focus on the agricultural sector, transportation, coal, gold and precious metals and steel.

Closing Time
XShares Advisors is closing 15 of its HealthShares ETFs. The last trading day will be Sept. 19. The company also said it will make changes to four other funds that will remain open. Earlier in the summer the company shuttered seven real estate-themed products.

Next Week's Notebook

Keep an eye on the weather forecast. Gustav should rumble into the Gulf of Mexico this weekend. Any damage it does will be reflected during early trading on Tuesday.

Earnings & Conference Calls

Tuesday: Donaldson

Wednesday: Casella Waste Systems, Casey's General Store, Collective Brands, Global Crossing, H&R Block, Hovnanian, Isle of Capri, Joy Global, NCI Building Systems, Staples

Thursday: Cascade, Ciena, Jackson Hewitt, Take-Two, Toll Bros.

Friday: National Semiconductor, Peerless Manufacturing

Economic Data

Tuesday
10:00 a.m. July Construction Spending
10:00 a.m. August ISM Manufacturing Business Index:

Wednesday
7:45 a.m. Chain Store Sales
8:55 a.m. Retail Sales Index
10:00 a.m. July Factory Orders

Thursday
8:30 a.m. Initial Jobless Claims
8:30 a.m. 2Q Revised Productivity
8:30 a.m. 2Q Revised Unit Labor Costs
10:00 a.m. August ISM Non-Manufacturing Composite Index
10:00 a.m. Business Barometer

Friday
8:30 a.m. August Nonfarm Payrolls
8:30 a.m. August Unemployment Rate

Quick Take

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