WEEK IN REVIEW "Tech Earnings Stall The Rally"

Second-quarter earnings results have been weak among technology firms, but US banks have performed much better than expected, profiting from surging financial markets. US Federal Reserve Chairman Ben Bernanke placated the world with reassurances that the Fed will continue to provide support for the US economy as long as it is needed. This gave renewed confidence to investors who were initially alarmed at the Fed's plan to begin exiting from quantitative easing as early as this fall.

Data from China continued to indicate a tapering of its growth rate. A survey of global businesses showed a widespread decline in confidence, and a survey in Europe forecast a rise in joblessness through next year. However, major stock indices trended upward, lifted by the strong US bank earnings and reassurances from Bernanke. Oil futures also rose, reaching $109 a barrel, while bond yields fell off slightly.

The S&P 500 climbed 2.72 points, or 0.2%, to end at 1,692.09, an all-time closing high, its 22nd record this year. For the week, it gained 0.7%. Healthcare and energy were the top gainers among the S&P 500's 10 major sectors, while technology was the biggest decliner.

Leading blue-chip losses, Microsoft fell more than 11%, a day after the software manufacturer and Dow component reported quarterly results below expectations.

The Dow Jones Industrial Average dropped 4.80 points, or 0.03%, to 15,543.74. For the week, it gained 0.5%.

The Dow and S&P 500 posted a fourth straight week of gains.

The technology-laden Nasdaq Composite fell 23.66 points, or 0.7%, to end at 3,587.61, leaving it down 0.4% for the week.

Advancers just outpaced decliners on the NYSE, where 681 million shares traded. Composite volume approached 3.1 billion.

One of the most significant trades off the Big Board was an unusual amount of activity in the front month 15 level Bank of America call options and the same level October calls which saw over 20,000 opening trades within the .50 to .65 price level.