And That’s The Week That Was: 10.26.07

October 28, 2007 |

Attached/linked please find And That’s The Week That Was… the Brounes & Associates market/economic commentary for the week ended October 26, 2007.  How can a company report a loss of over $1 billion in a quarter and still see its stock price increase by 30% on the same day?  Countrywide’s Angelo Mozilo must be one heck of salesman as a terrible earning release, the continued array of poor housing news, and even negative reports about something called “option arms” was not enough to keep investors away today.  (Then again, the company has tanked 50% over the past six months.)  The beleaguered CEO believes the worst of the problems are behind them (and, for some reason,  investors were buying his optimistic rhetoric).  All in all, equity investors were in good spirits this week and sought out some buying opportunities despite the ongoing housing/mortgage woes and skyrocketing oil that continue to threaten the economy and markets.  Microsoft led the upward charge as the company reported stronger than expected earnings and the rest of the techs (among others) followed suit.  Bernanke and clan meet next week to set policy so expect the rumors to be flying (along with a heavy dose of market volatility) over the next few days. 

Coming up in the week ahead:  Consumer Confidence (Tuesday), GDP (Wednesday), Fed Meeting Announcement (Wednesday), Personal Income/Spending (Thursday), ISM – Manu (Thursday), Unemployment/Nonfarm Payroll (Friday)
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