Sunday, August 24, 2008

Weekly Rewind - Week 34 (08/22/08)

In a roller coaster week, equities ended up taking a breather after the Commodities Index (DBC) staged a powerful comeback rally of +3.7%. Late in the week, however, yet another oil reversal, a relatively optimistic inflation forecast from Chairman Bernanke, rumors of a pending GSE bailout, and a possible overseas investment in Lehman helped equities to moderate their steep earlier losses.

In contrast to the prior week, among the major indices the Russell 2000 (IWM) led the pullback with a loss of -1.9%. Scanning the sector spectrum, Energy(XLE) put in the strongest gains for the week of +5.4%, while Financials (XLF) declined -2.9% on continued credit worries. The only style area able to post a modest gain was Large-Cap Growth (PWB) at +0.5%.

Looking ahead to Week 35 of 2008, trading action will be dominated by a busy economic calendar, including:

  • Monday - Existing Home Sales

  • Tuesday - Consumer Confidence, New Home Sales & FOMC Minutes

  • Wednesday - Durable Orders & Crude Inventories

  • Thursday - Preliminary Q2 GDP & Jobless Claims

  • Friday - Personal Income/Spending, Chicago PMI & Michigan Sentiment

Other news to watch with the Olympics and earnings season over will be a fresh wave of political theater both here and abroad. World watchers will also no doubt be keeping a close eye on developments in Georgia, particularly as international "aid" arrives.

o Yahoo! U.S. Earnings Calendar
o Yahoo! U.S. Economic Calendar

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