And That’s The Week That Was: 10.26.07

October 28, 2007 | Leave a Comment

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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And That’s The Week That Was: 9.14.07

September 17, 2007 | Leave a Comment

Attached/linked please find And That’s The Week That Was…the Brounes & Associates market/economic commentary for the week ended September 14, 2007.  To cut or not to cut?  By 25 bps or 50 bps?  Concerned about housing/subprime or oil prices and inflation?  These are just a few of the questions Bernanke will be asking his mighty men (and women) next week at the Federal Reserve Open Market Committee meeting.  Another volatile (yet positive, for a change) week in the equity markets left investors with but (almost) two trading days before the intentions of the Fed are revealed.  And it can’t seem to get here soon enough.  Apple, Countrywide, and GM were all in the news this week, but no one really seemed to notice.  Investors have a one-track mind these days.  And Tuesday, they should get all the answers they have been seeking (though the accompanying statement may prompt a few new ones). 

Coming up in the week ahead:  PPI (Tuesday), Fed announcement (Tuesday), CPI (Wednesday), Housing Starts (Wednesday)
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And That’s The Week That Was

July 27, 2007 | Leave a Comment

And That’s The Week That Was…the Brounes & Associates market/economic commentary for the week ended July 27, 2007.  How can investor sentiment change so much so quickly?  Just a week ago, the Dow and S&P 500 stood around all-time highs, and double-digits annual gains for the major indexes seemed like a foregone conclusion.  Enter…a couple of surprising earnings announcements (thanks Countrywide), and now a new dark cloud suddenly hovers over Wall Street.  (That’s what the worst week in five years will do for you.)  For a change, investors are suddenly noticing the never-ending housing woes and contemplating the impact that the subprime (and even prime) mortgage fiasco can have on the overall economy and markets.  Just don’t throw in the towel so quickly.  Go home; rest up; read about the GDP in the 2^nd quarter; and remember the bright spots investors were touting just last week.  Things couldn’t have possibly changed that much that quickly?  Or could they?

Coming up in the week ahead: ISM Manufacturing (Wed), Unemployment Rate (Friday), ISM Services (Friday)

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