Week in Review
A look back at the week that was...
Times can't get any better for the Bulls. Early in the week the markets moved higher behind strong earnings, M&A activity, and positive economic data. Even a soft payroll number could not stop the market's momentum. The DJIA is on pace to notch gains in 23 of the past 26 trading sessions. The S&P 500 hit the 1500 milestone while the NDX reached multi-year highs. The only "Sister" which still sits under water is the RUS as large caps continue to outpace small cap issues in 2007.
The only caveats in the bullish bias would be the worsening housing picture and high oil prices keeping the transports from notching new highs. But for the time being, earnings continue to beat expectations and the M&A flurry coupled with stock buybacks are sending a loud and clear message to the Bears that stocks are still undervalued.
As a reminder, last week TAM released its "Updated Market Theory." Please take the time to review this by clicking here.
The Four Sisters Performance
Friday's jobs report showed a slowdown in job growth, but the 88,000 jobs created still was within the expectations of the marketplace. The Labor Department also revised the job gains in February and March downward from their previous reports (5/4).
Personal Income met expectations as salaries gained 0.7% in March while Personal Spending fell below the consensus coming in at 0.3%, the lowest number since October (4/30).
Easing fears of the economic expansion the ISM Manufacturing Index rose to a one year high of 54.7% after seven straight week months (5/1).
The growth in Time Warner's (TWX) cable segment aided the 9% increase in profit against the same period a year earlier (5/2).
Mastercard (MA) boosted a 1Q profit from higher gross dollar volume and a 19% jump in the number of transactions processed (5/2).
Powerful growth in China and international divisions helped Yum Brands (YUM) realize a strong 1Q growth and raise forecasts for full year growth (5/1).
The Venezuelan government nationalizing telecom service stalled earnings as Verizon (VZ) showed a lower than expected 1Q $1.5 vs. $1.63 cons (4/30).
A tightening of fiscal policy and sales of detergents, razors, and baby care products led Proctor and Gamble Co. (PG) to 14% increase in profit for the quarter (5/1).
Improvement in its automotive business wasn't enough to overcome its exposure to the sub-prime fiasco in its financing operations as General Motors (GM) saw profit plunge 90% in the 1Q (5/3).
Market Movers: Winners & Sinners
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