Week in Review: November 30, 2007
A look back at the week that was....
Another wild ride on Wall Street ended with all Four Sisters rallying behind the financials on hopes of a Fed rate cut. The SPX rallied right up to major resistance of 1490 on Friday as investors attempt to discount whether Santa will be leaving presents or coal in stockings this year.
The market stumbled Monday as shares fell to the current SPX support level of 1410. A rally quickly ensued after Citigroup`s (C) announcement of a $7.5 bln cash infusion, sparking a revival in the heavily shorted financial sector. However, investors remain wary of just how long the credit crises will keep its hold on the market.
As the bulls drove stocks higher the bears took the upper hand in commodities as gold saw pressure in the face of falling crude prices and a slight rebound in the greenback. As we continue to inch closer to the holidays, all investors' eyes will be on the upcoming jobs report to set the stage to determine whether the bulls or bears will control the tape into the new year.
The Four Sisters Performance
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London based HSBC Holdings (HBC) announced Monday that it will move two of its structured investment vehicles onto its balance sheet and provide nearly $35 bln in funding.(11/26)
Black Friday proved to be better than expected this year as the data indicated a modest 8.3% rise in sales on the day. Online shopping also showed strength as Internet sales totaled nearly $800 mln over two days. (11/26)
Citigroup (C) received a much needed $7.5 bln infusion from the Abu Dhabi investment authority, easing some concern over the banking giant`s near term future. (11/28)
Friday offered mixed economic data as inflation stayed within Fed target rates while nominal income missed the consensus mark by 0.2%. Markets took this as further reason for an upcoming rate cut. (11/30)
Federal Reserve Chairman Ben Bernanke said in a speech on Thursday evening that economic data released over the next week and a half will determine as to whether or not the Fed will lower rates in their upcoming meeting. (11/30)
Staples (SPLS) offered hope to a struggling retail sector this week after reporting a 13% surge in net income. Shares surged nearly 9% on the news. (11/27)
Tech Data (TECD) also posted strong quarterly results this week, as the company saw net income rise 128%. (11/27)
Sears Holdings (SHLD) disappointed investors this week as the retailer saw a drastic drop in net income to $2 mln compared to $196 mln a year ago. Shares fell sharply after the announcement. (11/29)
Dell (DELL) reported mixed earning results this week as revenue rose 9%, though shares fell nearly 15% on Friday as fears of shrinking market share and slower PC sales weighed on investors. (11/29)
Market Movers: Winners & Sinners
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