6.06.08
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It has been a very volatile week on Wall Street. Worries over the financial sector resurfaced Monday after Standard & Poor's downgraded such institutions as Lehman Brothers and Merrill Lynch, and Wachovia's CEO was forced to step out due to mounting losses caused by the ongoing credit crisis. Stocks fell in the process and did so again Tuesday following news that General Motors's sales in North America dropped 30%. Thanks to lower oil prices and upbeat economic figures on service activity and productivity, the main indexes found some stability Wednesday. As has been the case lately, the tech sector outperformed and helped the Nasdaq Composite post a 0.9% daily gain. Despite a $5 jump in the price of crude, stocks rallied in earnest Thursday after bellwether retailers Wal-Mart and Costco both reported better-than-expected results. Small caps were especially strong and sent the Russell 2000 to a 2.6% gain for the session. The gains proved to be only temporary, however, as stocks suffered heavy losses Friday. Investors took money off the table after a disappointing jobs report showed that the unemployment rate jumped from 5% to 5.5% in May. The markets were also pressured by record oil prices, as the cost of a barrel gained almost $11 to hit $138. The selling caused all major averages to lose in the vicinity of 3% during Friday's session. We remain 50% invested and 50% in cash. Till next week The MTA Staff |
