Weekly Economic & Investment Recap: 5.2.08

May 5, 2008 | Leave a Comment

And That’s The Week That Was, the Brounes & Associates market/economic commentary for the week ended May 2, 2008.

Wow. Talk about a busy week.  With Exxon-Mobil experiencing the second best corporate quarter EVER (and still disappointing investors), earnings season moved closer to completion and the results have not been half-bad (at least, not as bad as many anticipated).  Profits from overseas have been the savings grace for many multi-national companies.  Likewise, news about the economy seemed to invigorate investors as reports on labor and manufacturing depicted continued sluggishness, BUT the data beat most analysts’ more dire forecasts.  The Fed cut rates for the seventh time since 2004, but indicated that the move would be its last for a while (barring any unexpected developments).  The dollar rose from its recent doldrums; oil fell from its all-time highs; and investors went bargain shopping for yet another week.

Next week finds little in the way of significant earnings/economic data. Hopefully, no news is good news.   

Coming up in the week ahead:  ISM - Services (Monday), Consumer Credit (Wednesday), Trade Balance (Friday)

And That’s The Week That Was: 12.14.07

December 14, 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 December 14, 2007.  So, which report was more widely read this week: the summary of the Fed’s policy meeting or the Mitchell report on steroid use in baseball?  While Dr. Bernanke probably had a better week than Roger Clemens and Andy Pettitte, he caught a bit of grief from investors who thought that a larger rate cut was in order.  As the week progressed, the major inflation releases brought new fears that the surge in oil prices is starting to work its way through other sectors of the economy.  The subprime debacle continued though one major investment firm seemed to benefit from others’ misfortunes.  Most equity indexes fell this week and suddenly those positive gains for the full year are no longer foregone conclusions (particularly among small-caps).  Likewise, fixed income securities lost value as investors tried to understand the ramification of a Fed liquidity plan.  Now, is HGH banned at the New York Stock Exchange? 

Coming up in the week ahead:  Housing Starts (Tuesday), GDP (Thursday), Personal Income/Spending (Friday)

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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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