Week in Review: February 29, 2008
Look back at the week that was.
The Four Sisters started the week off on good footing holding last week low of 1330. Positive home sales data coupled with Standard & Poor reaffirming the AAA rating of the bond insurers send the SPX right below its intermediate term resistance of 1400. The NDX underperformed the financial laden DJIA and SPX, failing to confirm a possible intermediate term breakout.
However, gains were short lived as fear returned to the markets over concerns of small banks withstanding the latest credit turmoil coupled with woeful consumer confidence figures.
If the SPX can not hold support of 1320, it will bring the January lows into full view. Next week's jobs number will be crucial…a poor number will most certainly cause this to happen. So goes the consumer, so goes the economy. Patience and discipline are crucial in this environment. Always have stops in place. Have a safe and fun weekend.
The Four Sisters Performance
Click to enlarge
The housing market continued to show weakness once again this week as existing home sales dipped 0.4% in the month of January. Resales are down 23.4% from January last year. (2/25)
Higher food and energy costs caused the Producer Price Index to spike 1.0% higher in January, as the core PPI increase came in at a lower 0.4%. (2/26)
Durable goods orders fell 5.3% in January, slight higher than the expected drop of 5.1%. Economists cite a drop in aircraft orders for the decline. (2/27)
Commodities prices were soaring Wednesday morning as crude oil climbed past $102 and gold reached $960 an ounce. (2/27)
Gross Domestic Product rose 0.6% in the fourth quarter, unrevised from last month's initial estimates. GDP purchases fell 0.3% in the quarter, marking the first decline since 2001. (2/28)
Lowe's (LOW) saw 4Q income dip to $408 mln, from $613 mln in the same quarter a year ago. The home improvement retailer cited soft industry sales for their performance. (2/25)
Target (TGT) also struggled this week after the retail giant saw 4Q earnings fall to $1.03 bln from $1.23 bln a year ago. A slower economy and one less selling week contributed to the company's lackluster results. (2/26)
American International Group (AIG) struggled on Friday as the company reported an $11 bln write-down, providing further proof that the subprime crises is not over yet. (2/29)
Dell (DELL) struggled in 4Q after reporting 31 cents per share, as analysts expected 36 cents. The tech heavyweight cites company realignment plans for the lower than expected earnings. (2/29)
Market Movers: Winners & Sinners
Click to enlarge
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.= span>
Daily Recap Newsletter