And That’s The Week That Was: 11.9.07

November 12, 2007 |

Attached/linked please find And That’s The Week That Was…the Brounes & Associates market/economic commentary for the week ended November 9, 2007.  Is it over yet?  Please tell me it has just been a bad dream?  Why doesn’t the stock market close for Veterans Day?  Needless to say, shell-shocked investors departed Friday asking many of these same questions.  For the week, the Dow plummeted by over 550 points or about four percent.  The Nasdaq plunged over six percent and the S&P 500 dropped by over 3.5 percent.  The small-cap Russell 2000 index now stands in negative territory for the year.  More subprime-related write-downs combined with some earnings warnings and a few negative predictions by the Fed Chair…and the equity freefall was on.  Retailers grew more fearful about their upcoming holiday season as the earlier than normal discounting failed to produce any dividends thus far.  With everyone and their brothers (mothers, fathers, in-laws, dogs) shying away from stocks, fixed income (and gold) investors reaped the rewards.   Oil soared on the ongoing supply concerns (and speculation that it will soon surge passed $100/barrell and just keep going).  And, a few renown (at least, once renown) Wall Street execs started retirement a tad sooner than expected.  Enjoy the weekend (and consider staying home for Veterans Day as well). 

Coming up in the week ahead:  PPI (Wednesday), Retail Sales (Wednesday), CPI (Thursday), Industrial Production (Friday)

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