Week in Review
See you on Monday Minyans!
Traders may have returned to their desks after the holiday weekend, but optimism certainly did not. After a modest rally on Tuesday, stocks and bonds were under pressure after the Labor Department reported hotter than expected unit labor costs for the second quarter and a dip in productivity levels. The hawkish data sent the dollar higher and this served as a catalyst for a sell off in the precious metals.
Tuesday's announcement from Chevron (CVX) and its affiliates about a new exploration site in the Gulf of Mexico sent crude to its lowest levels in 5 months and below $67 a barrel. A breach of oil's upward trend line could signal new leadership away from the energy sector, but it remains to be seen if the Texas tea's dip is enough to buoy the "Four Sisters" throughout a historically unfavorable month.
As mentioned in this week's 'Jo, if the "Four Sisters" can follow through to the topside of their respective resistance levels, the last quarter could be favorable for the bulls. However, if volume continues to be lackluster, then probabilities lie in favor of the sisters retesting their mid-August breakout levels.
-Frank Walden & Justin Carter
The "Four Sisters" Performance
The Labor Department reported the biggest jump in wage growth since 1990, sparking fears that inflationary pressure still exists. Stocks and bonds sold off on the news. (Wed 6th)
Ford Motor Co. (F) has picked Boeing's (BA) CEO Alan Mulally to replace Bill Ford as CEO with hopes of turning around the troubled car maker. (Wed 6th)
Chevron Corp. (CVX) along with Devon Energy (DVN) and Norway's Statoil (STL.OL) announced the successful drilling of an exploration well in the Gulf of Mexico. (Tue 5th)
Chipmaker Intel Corp. (INTC) announced it will slash its workforce by 10,500 jobs in an effort to become more competitive with rival Advanced Micro Devices (AMD) as AMD continues to gain market share. (Tue 5th)
The Securities and Exchange Commission (SEC) announced that it is reviewing the option granting practices of over 100 companies in a wide array of sectors. (Wed 6th)
British Prime Minister Tony Blair announced he will resign within the next 12 months ending his tenure which dates back to 1997. (Thurs 7th)
Israel lifted its naval and air blockade on Lebanon as European peace keeping troops arrived to monitor the region and prevent any arms smuggling to Hezbollah. (Fri 8th)
Jobless claims came in lighter than expected last week signaling the resiliency of the labor market. Wholesale inventories for the month of July rose slightly which could slow economic growth. (Thurs 7th)
The Beige Book reported overall economic growth for the latter part of the summer, but showed a slowdown in growth for 5 out of the 12 Fed districts. (Wed 6th)
The NASDAQ Stock Market (NDAQ) will enter the competitive option exchange business creating both equity and index option markets. (Thurs 7th)
National Semiconductor Corp. (NSM) beat profit estimates for the quarter, but issued disappointing guidance. (Thurs 7th)
Casino device maker Shuffle Master Inc. (SHFL) reported a dip in quarterly profit on higher costs. (Thurs 7th)
Market Movers: Winners and Sinners
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