Market Snapshot October 16, 2009, 4:25PM EST

Stocks Slump on GE, BofA Reports

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Surprisingly strong profit from JPMorgan Chase & Co. on Wednesday helped push the Dow Jones industrials over the 10,000 mark for the first time in a year, but slightly disappointing results from Citigroup (C) and Goldman Sachs Group (GS) on Thursday weighed on shares for much of the day before the market moved higher in the last few minutes of trading.

Analysts say stocks' wayward moves are to be expected, considering the size of the market's rally. But at the same time, analysts are encouraged that investors continue to wade back into the market on any dips, sensing an opportunity to take part in the rally. That momentum could continue to push stocks higher.

In economic news Friday, the U.S. Treasury posted a $46.6 billion budget deficit in September, compared to a $45.7 billion surplus one year earlier. That brings the fiscal 2009 red ink amount to a record $1.417 trillion, up 211.6% vs. last year's figure.

"Get used to these trillion dollar amounts, they'll be with us for years," says Action Economics.

U.S. industrial production climbed 0.7% in September from a revised 1.2% gain in August (was 0.8%) and a 0.9% increase in July (revised from 1.0%). That's much stronger than expected. Manufacturing production rose 0.9% from a revised 1.2% previously (was 0.6%), with motor vehicles and parts jumping another 8.1% after a near cumulative gain of 25% in the prior two months. Utilities declined 0.7% following a 1.9% gain in August. Mining was up 0.7% after a 1.1% increase in August (revised up from 0.5%). The data reflect lingering effects from the "cash for clunkers" program, notes Action Economics.

U.S. consumer sentiment dropped to 69.4 in the preliminary October reading from the University of Michigan survey. That compared to the 73.5 final print from September. The index was 57.6 last year in the wake of the Lehman failure and as the financial crisis was taking hold. Weakness was centered in the future component, where the economic outlook index fell to 67.6 from 73.5 in September, and was at 57.0 last October. The current conditions index slipped to 72.1 from 73.4 last month, and compares to 58.4 last year. The 1-year inflation index popped up to 2.8% from 2.2% in September and was at 3.9% a year ago. The 5-year ahead index edged up to 2.9% from 2.8% last month and 2.9% last year.