Market Commentary 1/5/2009
The Markets
The markets shook off a lackluster consumer confidence reading and a disappointing manufacturing report on Friday to post gains on the first trading day of 2009. Although trading last week was light due to the holidays, the markets continued their pattern of reacting more mildly to negative economic news as they have since reaching lows on Nov. 20. Analysts expect this week to be a better indicator of overall market sentiment, according to the Associated Press. For the week, the Dow gained 6.13 percent to close at 9,034.69. The S&P rose 6.84 percent to finish the week at 931.80, and the NASDAQ climbed 6.66 percent to end the week at 1,632.21.
Source: Morningstar.com. * Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week” returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.
Oil Slide - The price of crude oil for February delivery fell to $39.03 a barrel on Tuesday, Read more…
Market Commentary 12/29/2008
The Markets
The major markets showed further signs of stability last week, despite finishing the week with losses. According to the Associated Press, analysts believe much of the recent poor economic news has already been factored into stock prices. That includes weak holiday spending, down 5.5 percent to 8 percent compared to last year, according to SpendingPulse. This week’s economic data includes the Conference Board’s December consumer confidence survey, which will be released Tuesday, and the Institute for Supply Management’s December report on the manufacturing sector, to be released Friday. For the week, the Dow lost 0.68 percent to finish at 8.515.55. The S&P declined 1.62 percent to end the week at 872.80, and the NASDAQ fell 2.18 percent to close the week at 1,530.24.
Source: Morningstar.com. * Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week” returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.
GDP Unchanged - The Commerce Department reported Tuesday that third-quarter gross domestic product (GDP) fell at an annualized rate of 0.5 percent. Read more…
Market Commentary 12/22/2008
The Markets
The Federal Reserve dropped its fed funds rate to vary between 0 - 0.25 percent on Tuesday, sparking a 360-point rally for the Dow. On Friday, the White House promised to provide General Motors Corp. and Chrysler LLC with $13.4 billion in short-term financing, and another $4 billion at a later date, contingent on the two automakers proving their viability by March 31. For the week, the Dow fell 0.58 percent to 8,579.11, the S&P rose 0.94 percent to end the week at 887.88, and the NASDAQ gained 1.53 percent to finish the week at 1,564.32.
Source: Morningstar.com. * Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week” returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.
Falling Inflation - The Consumer Price Index fell by a record 1.7 percent in November, according to the Department of Labor, Read more…
Market Commentary 12/15/2008
The Markets
In another sign that the markets may have the worst-case scenario already factored into pricing, Wall Street shook off news Friday that the Senate had failed to pass a $14 billion bailout package for U.S. automakers. Just last week, the markets managed a Friday advance despite the Labor Department report showing the nation lost 533,000 jobs in November. Since its Nov. 20 low, the Dow has gained 14.3 percent, the S&P is up 16.9 percent and the NASDAQ has recovered 17.1 percent. This week, the Federal Reserve holds its December meeting, where it is expected to lower the federal funds rate by half a percentage point to 0.5 percent. For the week, the Dow lost 0.01 percent to end at 8,629.68, the S&P gained 0.48 percent to close the week at 879.73, and the NASDAQ rose 2.08 percent to finish the week at 1,540.72.
Source: Morningstar.com. * Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week” returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.
Historic High - The highest individual income tax rate in U.S. history was in 1944 and 1945 when the top rate on a single filer was 94 percent, according to the Tax Foundation. Read more…
Market Commentary 12/8/2008
The Markets
Major indexes advanced Friday despite the Labor Department’s report that the nation lost 533,000 jobs in November, exceeding the 320,000 economists had expected. That seemed to be the theme for the week: except for Monday, when the Dow dropped 680 points, equity markets experienced fewer swings even as economic data and corporate announcements remained bleak. Some analysts believe this may indicate that the markets have fully built in the impact of a recession, paving the way for investors to start speculating on the recovery. For the week, the Dow fell 2.11 percent to 8,635.42. The S&P dropped 2.18 percent to 876.07, and the NASDAQ lost 1.71 percent to close the week at 1,509.31.
Source: Morningstar.com. * Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week” returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.
Mortgage Apps Up - Mortgage applications increased by a record percentage amount the last week of November after a new Federal Reserve program brought rates down Read more…
Market Commentary 12/1/2008
The Markets
Wall Street continued its rally on Friday, with the Dow and S&P marking their largest five-day percentage gains since 1932 and 1933, respectively. The rally, which began Nov. 21, has seen the Dow rise 16.9 percent, the S&P 19.1 percent and the NASDAQ 16.7 percent. The announcement of President-elect Obama’s economic team, the government assistance to Citigroup and the Federal Reserve decision to purchase large amounts of mortgage-backed securities helped boost the market. For the week, the Dow ended up 9.82 percent to 8,829.04, the S&P rose 12.09 percent to close the week at 896.24 and the NASDAQ gained 10.92 percent to finish the week at 1,384.35.
Source: Morningstar.com. * Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week” returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.
The Range - In the one year following the low point from each of the nine bear markets that have occurred since 1957 Read more…
Market Commentary 11/24/2008
The Markets
The U.S. markets halted its decline on Friday as news that President-elect Obama was likely to appoint the chief of the New York Federal Reserve, Timothy Geithner, as the next Treasury Secretary. The Dow, which had broken even for the day, finished 494 points higher as news of Geithner’s nomination leaked about an hour before the markets closed. For the week, the U.S markets closed down, with the Dow 5.20 percent lower finishing at 8,046.42. The S&P ended the week down 8.33 percent closing at 800.03 and the NASDAQ closed 8.74 percent lower to finish the week at 1,384.35.
Source: Morningstar.com. * Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week” returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.
Stocks And Politics - In the past 50 years (1958-2007), the S&P 500 has been up 21.3 percent per year (total return) under a Democratic President and a Republican-led Congress, Read more…
Market Commentary 11/17/2008
The Markets
Wall Street continued its dramatic swings last week. The Dow charted its third-largest single session point gain Thursday with a 550-point rally. Hedge fund selling accounted for some of the downturn, as funds liquidated assets to meet the 45-day notice for investor withdrawal requests by year-end. The Dow closed the week down 4.87 percent to 8.497.31. The S&P lost 6.11 percent to close the week at 873.29, and the NASDAQ fell 7.92 percent to finish the week at 1,516.85.
Source: Morningstar.com. * Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week” returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.
Trade Deficit Drop - The U.S. trade deficit dropped by 4.4 percent in September to $56.5 billion, Read more…
Market Commentary 11/10/2008
The Markets
Wall Street enjoyed a record Election Day rally on Tuesday with the Dow and S&P both up more than 3 percent and the NASDAQ up more than 4 percent. The Labor Department unemployment report of 240,000 lost jobs came in lower than Goldman Sachs’ estimate of 300,000 but higher than the median forecast of 200,000. Investors will have more economic data to digest this week with readings on the labor market and trade deficit due Thursday and the October retail sales index coming out Friday. For last week, the Dow ended down 3.93 percent to 8,943.81. The S&P lost 3.78 percent to close the week at 930.99, and the NASDAQ lost 4.27 percent to finish the week at 1,647.40.
Source: Morningstar.com. * Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week” returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.
Medicare Open Enrollment - Open enrollment for Medicare begins Nov. 15 and continues through Dec. 31, 2008. Read more…
Market Commentary 11/3/2008
The Markets
The Dow had its best week in 34 years last week, gaining 11.31 percent. On Tuesday, the Dow recorded its second highest daily gain on record, jumping 889 points in anticipation of the Federal Reserve rate cut. Wednesday the Fed came through with half a percentage point cut, lowering to 1 percent the rate that banks charge on overnight loans. The Dow ended the week at 9,325.01, and the S&P gained 10.53 percent to close the week at 968.75. The NASDAQ rose 10.88 percent to finish the week at 1,720.95.
Source: Morningstar.com. * Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week” returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.
More Planes, Autos - U.S. orders for big-ticket manufactured items experienced its largest gain in three months during September September on demand for airplanes and cars. Read more…