5.09.08
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5.09.08 The market closed the week modestly lower. All week we saw the price of oil continue to set new records. Despite negative headlines in the financial sector and another surge in oil prices, stocks reversed higher Tuesday to net the Nasdaq Composite a 0.8% gain for the session. Wednesday's drop was mainly due to financial stocks, as those companies were affected by the Newly-issued SEC requirement that Wall Street institutions disclose their capital and liquidity levels. That hit the market hard on Wednesday and the Indices closed down around 2% across the board. Better-than-expected retail sales for April appeared to please investors Thursday, helping stocks recapture some of the previous day's losses. With financial giant AIG announcing an $8 billion loss for its latest quarter, the market was set for a weak opening Friday. Indeed, stocks ended the day moderately lower on light trading, and were also affected by record oil prices as crude closed just under $126 per barrel. Some pol's are talking about placing higher margin requirements on oil future contracts to reduce the "crap shooting" going on there. We would welcome that move. The good news for next week is that we have a lot more news to work with. Reports on retail sales, inflation data through the CPI, industrial production, housing starts, and consumer sentiment will be released. Ben Bernanke is also scheduled to speak on Thursday as well as a number of Fed members leading up to another options expiration Friday. Technically, the S&P 500 held its 20 day moving average (a good sign) but the bulls will need to really circle the wagons in the week to come. Happy Mother's Day to all of you this weekend. See you on Monday!
The MTA Staff |
