Week in Review
See You on Monday Minyans!
As mentioned in the 'Jo, probabilities lied in favor of the DJIA and the S&P500 making a move higher and this week confirmed our beliefs. The markets were helped by a continued sell-off in oil and this was not the only commodity to come under pressure. Bonds also got a lift this week buoyed by oil's dip and an inline CPI number.
New leadership has emerged in the markets away from energy and it will be important to watch the money flow into new sectors as we head into the last quarter. Since the sell-off in May, beaten up indices such as housing, retail, and transports have led the markets higher. Currently, the Russell and the NASDAQ are sitting at critical inflection points. As stated before, if these indices can break to the topside of their respective downtrends on substantial volume, the bulls will be in great shape for a robust quarter.
The "Four Sisters" Performance
Consumers slowed their spending habits for the month of August, but still beat analysts' expectations. (Thurs 14th)
Republicans are slated to keep control of the Senate, but the Democrats have a good chance to win the 15 needed seats in the House this fall. (Wed 13th)
The Consumer Price Index (CPI) was in-line with expectations and gave a boost to stocks as Wall Street thinks the Fed will stop raising interest rates. (Fri 15th)
Amid controversy over Hewlett-Packard's (HPQ) board, Patricia Dunn stepped down as Chairman. (Tue 12th)
The trade deficit jumped to its highest level ever in the month of July as higher oil prices pushed the imbalance higher. (Tue 12th)
The Chinese economy is beginning to show signs of slowing after the central bank's recent effort to tighten monetary policy. (Thurs 14th)
Apple Computer Inc. (APPL) announced the launch of several new products including an online movie store. (Fri 15th)
Oil and precious metals were under pressure all week after a surge in oil inventories dropped oil to a 5 and a half month low. (Fri 15th)
Best Buy Co. (BBY) reported strong second quarter results in large part to strong sales of high-definition TVs. (Tue 12th)
Notable investment bank Goldman Sachs Inc. (GS) suffered a summer trading slump, but was able to beat Wall Street expectations on strong investment banking performance. Bear Stearns Cos. (BSC) and Lehman Brothers Holdings Inc. (LEH) were able to offset a slowdown in mortgage and M&A activity through stellar trading results beating estimates.
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