4.6.07

UPDATE  4.6.07

Economic news, which has kept Wall Street's attention in recent months, gave mixed signals Wednesday. Investors have been trying to determine whether the economy can still slow gradually -- a so-called soft landing -- or whether fissures in the housing sector will place too great a strain on economic growth. Recent attention to strains among so-called subprime lenders, which make loans to people with somewhat dubious credit quality, has unnerved some investors. Monday was a quiet start to the holiday-shortened week, but  stocks jumped higher Tuesday. The rally was fueled by a better-than-expected housing report and lower oil prices as the tension with Iran began to subside. The markets were able to build on their gains by moving modestly higher on light volume the next two days as oil prices continued to decline. On the economic front, the Labor Department released the March employment report on Friday, with the markets closed for the Good Friday holiday. The report was better than economists had expected, as employers added 180,000 jobs in March, more than the 135,000 that had been anticipated. The unemployment rate dropped to 4.4%. Bond yields moved higher on the news, as investors appeared concerned that with such strong numbers, the Federal Reserve will remain worried about inflation and may have to increase interest rates in the near future. The Fed, which has left interest rates unchanged at its last six meetings after a string of 17 straight increases, has said inflation remains a concern even as the economy slows down .  

 The Nasdaq 100 , S&P 500  and Russell 2000 respectively gained 2.29%, 1.61% and 1.58% on the week. All 3 indexes are back above both their 50-day exponential moving average and 200-day EMA.

Till next week

The staff at MTA.