It was a tumultuous week, though the volatility of financial markets paled in comparison to the tragedies in Boston and at a Texas fertilizer plant. Domestic equities made an attempt to recover from Monday’s 266-point collapse in the Dow industrials, but quickly reversed any progress, giving the Dow its worst week in almost a year. Gold followed up on the previous Friday’s fiasco by plunging $140 an ounce on Monday;Read More
Equities around the globe continued to slide, suffering four straight down days as both the United States and Europe grappled with fiscal cliffhangers. Despite some optimism at week’s end, the Dow saw its fourth straight negative week. Meanwhile, the Nasdaq and small-cap Russell 2000 entered correction territory with declines of more than 10% since their September highs.Read More
Equities took a 2%-plus hit last week. Whether it was caused by profit-taking, a gloomy forecast from the International Monetary Fund, reaction to initial third-quarter earnings reports, or some combination, the decline cost equities their attempt at a new post-2007 high. Meanwhile, oil prices bounced back above $90 a barrel, while the stock market’s troubles also meant a bit more appetite for U.S. Treasuries.
Equities data reflect price changes, not total return.
Last Week’s Headlines
Eye on the Week Ahead
The bailout watch on Spain could intensify in advance of the European Union summit on Thursday and Friday. Domestically, a flood of earnings reports as well as housing and manufacturing data will suggest the state of the economy.
Key dates and data releases: retail sales, business inventories, Empire State manufacturing survey (10/15); consumer inflation, industrial production, international capital flows (10/16); housing starts (10/17); Philadelphia Fed manufacturing survey (10/18); home resales, options expiration (10/19).
Data sources: Includes data provided by Brounes & Associates. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results.
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indexes listed are unmanaged and are not available for direct investment.
George Fisher’s Market Comments 9-1-12
The market reminds me of the TV commercial with the little old lady sitting up in her bed, clapping to darken the room. For the markets it could be “Risk On Risk Off” rather than “Clap On Clap Off”. With a “Risk On” clap, the S&P 500 advances to the upper end of its 3 yr range in the high 1300s to low 1400s and with a “Risk Off” clap, it falls to the mid 1200s. Currently, we are in a “Risk On” mode.Read More
A dismal Thursday cancelled out much if not all of the rest of the week. The Dow’s 250-point loss made Thursday the index’s second-worst day of the year. The good news? Oil fell below $80 a barrel for the first time since October, offering hope for lower gas prices to follow. Meanwhile, the price of gold plunged roughly $60 an ounce.Read More