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US
Weekly Market Overview
(Week
from March 3 , 2008 to March 7, 2008)
Bargain
hunting lifted Alcoa (AA), Caterpillar (CAT) and other selected
issues. The Institute for Supply Management's manufacturing index
fell to 48.3 in February from 50.7 in January, showing a
contraction in factory activity.
U.S. construction spending dropped 1.7% in January, more
than the 0.7% decline that was expected, after a 1.3% drop in
December.
Higher oil prices accompanied these reports, keeping fears
of inflation alive. On Monday, Dow closed down 7.49 points, or
0.06%, at 12,258.90.
During late trading on Tuesday, talk of a forthcoming
bailout for bond insurer Ambac Financial (ABK) helped the market
pare some earlier losses. However, Citigroup (C) fell amid worries
that the giant bank may need more outside capital due to mortgage
losses. Investors also weighed a disappointing update from Intel (INTC).
On Tuesday, the Dow closed down 45.10 points, or 0.37%, at
12,213.80.
Stocks closed higher Wednesday as investors opted to
support the market despite a mixed bag of economic news. The
Federal Reserve's Beige Book said the economy has slowed since
Jan. 1. Other key data showed the ISM-nonmanufacturing index rose
to 49.3 in February, after plunging almost 9 points to 44.6 in
January.
U.S. factory orders fell 2.5% in January after a revised
2.0% jump in December (2.3% previously).
ADP National Employment Report private sector employment
index fell 23,000 in February. Stocks tumbled Thursday after news
of more trouble in the credit markets and just before a crucial
employment report is issued on Friday. Among the Street¡¦s
concerns about the deepening credit crisis were missed margin
calls by financial entities that could augur a wave of liquidation
of mortgage-backed securities. Traders were also unnerved by an
up-tick in mortgage foreclosures and new lows in the U.S. dollar.
On Thursday, the Dow closed down 214.6 points, or 1.75%, to
12,040.39.
Wall Street ended a dreadful week with another big loss
Friday after the government surprised investors with a report that
employers eliminated 63,000 jobs last month.
On Friday, Dow closed down 146 points, or 1.22% at
11,893.69.
US
Weekly Market Outlook
(Week
March 10, 2008 to March 14, 2008)
This
week we will get numbers on wholesale inventories on Monday.
On Tuesday, the trade balance will be released.
On Thursday, the advance retail sales and weekly initial
jobless claim data will be released. On Friday, we will also get
information on inflation as the February consumer price index will
be reported.
We will also have the University of Michigan Consumer
Confidence Index.
We expect the Fed will have to cut interest rates further.
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