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: August 17, 2007


A look back at the week that was...


Market Recap

The "Four Sisters" were under attack early in the week as retail sales hurt sentiment, highlighted by Wal-Mart's (WMT) 5% dip on Tuesday. Credit turmoil intensified after mortgage giant Countrywide Financial (CFC) had to dig into its pockets to fund its daily operations. As credit markets worsened the yen rallied sharply as hedge funds liquidated their carry trade positions. Assets which have been elevated in recent years as a function of the carry trade fell hard led by metals, energy, emerging markets, and high beta stocks. Yields plunged as investors began to fear the worst.

With the SPX in the red for '07 and world markets throwing up excess liquidity, markets rallied late Thursday led by short covering on the financials and again Friday after Helicopter Ben lowered the discount rate ½ point while conceding "downside risks to growth have increased appreciably." The Four Sisters were thrown a life jacket on Friday, but the question still remains if we are now entering the "eye of the storm."

The Four Sisters Performance

ETF Watch

Click to enlarge

Top Headlines

Retail Sales rose 0.3% for the month of July, 0.4% excluding autos. This marked a significant turnaround from an overall decline of 0.2% in June. (8/13)

This week Goldman Sachs (GS) announced they would inject $3 billion into its Global Equity Opportunities hedge fund which has lost nearly 30% of its value in the last week. Goldman insists that this is not a bailout but rather an opportunity to capitalize on "exciting market conditions". (8/14)

The Consumer Price Index (CPI) for July saw a 0.1% increase, with a 0.2% increase in core CPI. This marks the slowest inflation rate in eight months, with falling energy prices helping offset rising medical and apparel costs. (8/15)

The Japanese yen traded to a 13-month high against the USD in early hours on Thursday as traders cut risk by buying back yen instead of investing it in higher yield investments such as securities. This buyback was triggered by continued worries in the sub-prime market. (8/16)

Countrywide Financial (CFC) shares plummeted this week after reports that the lender drew from an $11.5 billion credit facility in efforts to boost liquidity. (8/16)

Earnings Snapshot

Home Depot (HD) reported earnings of $1.52 bln for the quarter, down from $1.7 bln a year ago. The company credits a weak housing and home improvement market for the decline. (8/14)

Wal-Mart (WMT) reported a 49% rise in second quarter income before the opening bell on Tuesday. Despite these strong reports, the retail giant lowered its fiscal-year earnings forecast by 10 cents to $3.05 to $3.13 per share, causing share prices to fall. (8/14)

Deere & Company (DE) beat third quarter estimates this week despite declining sales. A 30% increase in overseas sales and a weak U.S. dollar allowed the company to beat last year's report by $100 million. (8/15)

Hewlett-Packard (HPQ) reported a 29% rise in third quarter profits. Recent strength in PC sales accompanied with a decline in component parts contributed to the strong performance. (8/16)

Market Movers: Winners and Sinners

Click 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