Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Week In Review: December 21, 2007


A look back at the week that was...

1).jpg" />

Market Recap

Stocks skidded from the opening bell on Monday as the NASDAQ cut below its 200 DMA, continuing last week`s downturn in sentiment. Credit market turmoil once again took center stage this week as Morgan Stanley (MS) announced an addition $5.7 bln write-down. Though the back and forth battle of the credit crunch saw an upswing as the European Central Bank announced that they would infuse markets with $501 bln in short-term funding. The Fed also provided some cushion by holding term auctions of their own, providing $20 bln in short-term funding.

The markets were able to find support as the tech sector added buoyancy to the markets after strong earnings from Research in Motion (RIMM) and Oracle (ORCL). On a technical front this buoyancy has created a short term bottom in the market with the SPX support level now standing at 1440 and resistance holding at the familiar 1490, as highlighted last week.

As Christmas draws near with a shortened week and light volume in store, it looks as though we will continue to see range bound trading and will have to wait until the New Year to see whether the bulls or bears will take control of the market.

The Four Sisters Performance

ETF Watch

Click here to enlarge.

Top Headlines

The European Central Bank attempted to ease the credit crunch this week after announcing that they would infuse markets with $501 bln in short-term funding. The average rate taken by banks for the funding was 4.21%. (12/19)

Morgan Stanley added further intensity to credit market woes Wednesday after announcing an additional $5.7 bln write-down after disappointing investors with a $10 bln loss in 4Q. (12/19)

As Fed officials continue to lower rates here in the U.S., China's central bank once again raised their one-year lending rate, which now stands at 7.47%. The bank's rate hikes stem from an effort to slow the growing inflation within the country. (12/20)

Leading indicators dipped to 0.4% in the month of November, with only 3 of the 10 indicators rising. Stock Prices were the largest negative contributor to the index which has declined 1.2% in the past 6 months. (12/20)

Earnings Snapshot

ldman Sachs (GS) displayed their ability to beat the Street this week as the company reported a 26% rise in EPS and net earnings of $11.6 bln; though fears of the credit crunch and deteriorating markets caused share prices to slip after the announcement. (12/18)

Hovnanian (HOV) continues to struggle through the poor housing market conditions as the homebuilder reported a $466 mln net loss for 4Q. This loss came as cancellation rates rose 40% quarter over quarter and the company delivered 19% fewer homes. (12/18)

Shares of Oracle (ORCL) gapped to the upside this week after announcing a 36% rise in EPS. The tech leader cites strength in software licenses as the reason for much of the company's recent growth. (12/19)

Research in Motion
(RIM) added further strength to the tech sector after reporting a 100% increase in revenue from a year ago. Strong growth in BlackBerry subscriber accounts accounted for much of the company's earning growth. (12/20)

Market Movers: Winners & Sinners

Click here to enlarge.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely= reflects the analysis of or opinion about the performance of securities an= d financial markets by the writers whose articles appear on the site. The v= iews expressed by the writers are not necessarily the views of Minyanville = Media, Inc. or members of its management. Nothing contained on the website = is intended to constitute a recommendation or advice addressed to an indivi= dual investor or category of investors to purchase, sell or hold any securi= ty, or to take any action with respect to the prospective movement of the s= ecurities markets or to solicit the purchase or sale of any security. Any i= nvestment decisions must be made by the reader either individually or in co= nsultation with his or her investment professional. Minyanville writers and= staff may trade or hold positions in securities that are discussed in arti= cles appearing on the website. Writers of articles are required to disclose= whether they have a position in any stock or fund discussed in an article,= but are not permitted to disclose the size or direction of the position. N= othing on this website is intended to solicit business of any kind for a wr= iter's business or fund. Minyanville management and staff as well as co= ntributing writers will not respond to emails or other communications reque= sting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.



Featured Videos