Money Watch Weekly Wrap
Not since the passage of TARP have lawmakers gone down to the wire on an important vote. With only 6 months remaining in fiscal 2011, the US finally has a budget - one that cuts an estimated $38 billion in spending. There will be a stopgap measure to allow the deal to be put in legislative form. The week on Wall Street was dominated by analysts trying to predict the economic impact of a shutdown-with few investors willing to make a bet either way and stocks trading in a narrow range.
- DJIA: 12,380, up 0.03% on week, up 6.9% YTD (up 4.4% in three weeks)
- S&P 500: 1328, down 0.3% on week, up 5.6% YTD
- NASDAQ: 2780, down 0.3% on week, up 4.8% YTD
- May Crude Oil: $112.79, up 4.5% on week (up 11.60%, over the last three weeks)
- April Gold: $1473.40, up 3.1% on week
- AAA National Average Price for Gallon of Regular Gas: $3.75 (Record was $4.11 in July, 2008)
FACTOIDS OF THE WEEK:
- Bull/Bear Warning? The spread between stock market optimists (bulls) and pessimists (bears) is the highest since October 2007, when indexes were at their all-time highs. The American Association of Individual Investors' survey shows that 43.6% of its members were bulls, 28.8% bears and 27.6% neutral, with many of the bears throwing in the towel recently. Often when the spread widens, it can be a contra-indicator, meaning that when everyone is feeling good, it can lead to complacency and a nasty market correction.
- Profits at S&P 500 companies were up 40% last year, as companies slashed spending
- Analysts expect profits to rise 15% in 2011 on the back of increased sales growth
Mon 4/11:
Tues 4/12:
8:30 International Trade
8:30 Import and Export Prices
Weds 4/13:
8:30 Retail Sales
2:00 Fed Beige Book
Thurs 4/14:
8:30 Weekly Claims
8:30 PPI
Fri 4/15:
8:30 CPI
8:30 Empire State Manufacturing
9:15 Industrial Production
9:55 Consumer Sentiment