Week in Review
Have a great weekend Minyans!
The Bulls continued to show their strength this week as the NASDAQ was able to notch a 5 and a 1/2 year high on increasing volume. Earnings continue to be better than expected as all "Four Sisters" ticked higher.
The Federal Reserve left interest rates unchanged for the 3rd time in a row giving investors hope that the Fed will be done as the economy continues to moderate. Friday's softer than expected GDP data provided further evidence toward an economic slowdown and re-raised concerns over a "hard landing" for the economy.
With mid-term elections around the corner and indices at or near multi-year highs, probabilities lie in favor of a brief consolidation at these levels before we head into the latter part of the 4th quarter. With this being said, the Bulls still have plenty of reasons to celebrate as oil is well off of its highs, earnings continue to impress, and the interest rate picture is clearer.
The "Four Sisters" Performance
The median home price in the month of September dipped by 9.7%, the largest decline in 35 years as the housing market continues to soften. (Thurs 26th)
The Commerce Department reported on Friday that initial GDP slowed more than expected in the 3rd quarter as investment in homebuilding continues to drag on economic growth. (Fri 27th)
Durable goods orders experienced a sharp rise in September as civilian aircraft orders surged. Excluding transportation items, durable goods increased by a modest 0.1% less than the expected 1.0% increase. (Thurs 26th)
The conflict in Iraq experienced its most violent month in a year as sentiment continues to sour over the war. (Fri 27th)
Microsoft (MSFT) earnings rose 11% in the third quarter beating expectations as demand increased for its server software.
Sun Microsystems Inc. (SUNW) posted a narrower than expected loss for the second quarter. (Thurs 26th)
Oil giant Exxon Mobil (XOM) surpassed Wall Street expectations by posting $10.49B in quarterly profit. Chevron Corp. (CVX) easily beat estimates fueled by improving margins and higher oil prices. (Thurs 26th & Fri 27th)
Investors frowned upon Boeing Co. (BA) after questions arose over the cost of the company's new 787. (Wed 25th)
The world's largest cigarette maker Altria (MO) raised their outlook for next year and set a deadline to make their decision in its majority stake in Kraft Foods (KFT). (Wed 25th)
Turnaround story General Motors (GM) posted a smaller 3rd quarter loss, but the bottom line was helped by special one-time items. Huge costs associated with its recovery plan hurt rival carmaker Ford's (F) bottom line. (Wed 25th & Mon 23rd)
The nation's largest brewer Anheuser-Busch Cos. (BUD) improved productivity during the quarter and was able to beat estimates. (Wed 25th)
Market Movers: Winners and Sinners
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