Sunday, August 31, 2008

Weekly Rewind - Week 35 (08/29/08)

The week ended with a thud as several better than expected economic reports were offset by the worst personal income results in three years, and combined fears of foreign contagion and export weakness on dollar strength (UUP +0.6%). In a mixed market, Small-Caps were able to post a slim gain (IWM +0.3%), while the technology heavy NASDAQ 100 took it on the chin after a dour Dell report (QQQQ -2.9%)(FT - Dell's Long View).

Sectorwise, Financials and Real Estate were the only areas able to muster reasonable strength (XLF +3.3%; IYR +1.6%) as FOMC minutes suggested a policy hold (RTTNews - Policy Hold) and the GSEs staged a comeback rally on successful debt auctions and continued bailout speculation (HousingWire - Shares Rebound). This rally leaves the Financials looking vulnerable to a near-term pullback, however.

Looking ahead to a holiday-shortened Week 36 of 2008, trading action will be influenced by:

  • Tuesday - Auto Sales; Construction Spending & ISM Index

  • Wednesday - ADP Employment; Factory Orders & Fed Beige Book

  • Thursday - Jobless Claims, Productivity & ISM Services

  • Friday - Jobs Report

Meanwhile, it seems that national attention has been redirected from the global stage (Welt - Georgians Effectively Blocked) to our political conventions and the gulf storms (AP - New Orleans Orders Evacuation).

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

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