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From Briefing.com: Weekly Recap - Week ending 17-Dec-10Following a volatile, headline-driven week, U.S. equity markets ended up basically where they began, eking out a small gain.

Seven of the 10 S&P sectors rose, led by Materials (+1.7%), Consumer Staples (+1.6%) and Health Care (+1.5%). Financials (-1.4%) led the underperformers.

The most notable move of the week occurred in the Treasury market. Yields extended their recent, aggressive run, with the 10-year peaking at 3.56%, approximately 115 basis points above the October low and 99 basis points above the closing level on November 3, when the Federal Reserve announced a second round of quantitative easing. The sell-off in Treasuries ran out of steam on Thursday and Friday, however, with the 10-year falling back to 3.32%.

In equities, the major averages began the week by failing to hold their gains on Monday and Tuesday, falling back near unchanged in late-afternoon trade.

Tuesday was a busy session. Markets rallied as better-than-expected November retail sales data more than offset disappointing earnings and guidance from Best Buy (BBY). The retail sales report not only exceeded consensus estimates, but flew in the face of weak wage growth reported in the November employment report. However, the major averages saw a delayed sell-off following the FOMC policy directive, which did not acknowledge the backup in long-term rates that has occurred despite the Fed's bond purchase program.

That negative sentiment carried over into Wednesday. The major averages opened higher despite trading lower premarket after Moody's place Spain's long-term debt rating on review for a possible downgrade. But the opening levels did not hold and markets saw a gradual sell-off throughout the course of the day as Treasuries sold off and the dollar rallied.

A rally Thursday brought the major averages back to even on the week. Negative earnings from FedEx (FDX) initially sent the stock down 4%, but the company also increased its guidance, helping shares rebound to close up 2% on the session. The aforementioned pullback in Treasury yields also aided the rebound.

With the three-day Christmas weekend next week, the calendar is full in the middle of the week. Walgreens (WAG) is the only earnings report of note, out Wednesday before the open. The economic calendar is full, with existing home sales and the third estimate for third quarter GDP on Wednesday -- though the latter is not typically revised to any great extent -- as well as durable orders, personal income/spending and new home sales on Thursday.

 
 Index	  Started Week	Ended Week  Change  % Change  YTD % 
 DJIA	    11410.32	 11491.91   81.59      0.7   10.2 
 Nasdaq	     2637.54	  2642.97    5.43      0.2   16.5 
 S&P 500	     1240.40	  1243.91    3.51      0.3   11.6 
 Russell 2000  776.83	   779.52    2.69      0.3   24.6