Week in Review
A look back at the week that was...
The Bulls regained control late in the week as the DJIA and SPX made a run at its all time highs. Concerns over interest rates diminished as the yield on the 10-year declined after benign inflationary data at the core level. Friday's pick-up in volume bodes well for the bullish argument as we begin our journey into the second part of the year.
Oil and gas futures spiked this week as the price of crude crossed $68/barrel. Worries have resurfaced that refiners will not be able to meet the demands of the peak summer season. The precious metals found some footing as rising energy prices keep inflationary fears a reality.
As I look ahead to next week, an absence of major economic data should keep the current rally in tact as the large caps attempt to breakout and advance this market higher.
The "Four Sisters" Performance
The Federal Reserve's Beige Book indicated that the economy continues to expand at a moderate pace in most regions of the country with few elevated worries about inflation. (6/13)
The Producer Price Index (PPI) came in at 0.9% versus consensus expectations of 0.7%. Core PPI excluding food and energy came in as expected at 0.2%. (6/14)
The Labor Department reported that the Consumer Price Index (CPI) was up 0.7% versus expectations of 0.6%. Core CPI which excludes food and energy costs rose just 0.1%. (6/15)
Retail sales jumped 1.4% during May, the biggest gain in 16 months. The Street was expecting an increase of only 0.7%. (6/13)
Initial jobless claims were unchanged at 311,000 during the week ending June 9. The smoothed four-week moving average rose to 311,250, the highest in five weeks. (6/14)
Penn National Gaming (PENN) announced they would be acquired by private equity in a deal worth $8.9 billion. (6/15)
Lehman Brothers (LEH) reported earnings of $2.21 a share versus consensus estimates of $1.87 a share on higher than expected revenue. (6/12)
Goldman Sachs (GS) reported earnings of $4.93 a share versus consensus expectations of $4.78 a share. Net income rose 1% while revenue slipped 1% from a year ago. (6/14)
Bear Stearns (BSC) reported earnings of $2.52 a share down 33% from $3.72 a year ago. Analyst expectations were for $4.79 a share. (6/14)
Market Movers: Winners and Sinners
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