Money Watch: Weekly Wrap
Violence in Libya and unrest in the Middle East caused oil to surge and stocks to fall. US stocks had their largest weekly loss this year. (For more on oil and gas prices, see "Oil Surges: Will $5 Gas Follow?")
- DJIA: 12,130, down 2.1% on week, up 4.8% YTD (biggest weekly point drop since week ended 8/13/10)
- S&P 500: 1319, down 1.7% on week, up 4.9% YTD (biggest weekly percentage drop since week ended 11/12/10)
- NASDAQ: 2781, down 1.9% on week, up 4.8% YTD
- April Crude Oil: $97.88, up 9% on week (traded to 2 ½ year highs, above $103, during week)
- April Gold: $1409.30, up 1.4% (up 5% over last four weeks)
FACTOIDS OF THE WEEK:
- People were feeling pretty good before the Middle East heated up-consumer confidence and sentiment indicators reached 3-year highs, though the survey periods covered the period before Egypt and Libya erupted.
- With grain prices up over the past 12 months (corn +88%, wheat +76% & soybeans +37%), the US Agriculture Department said that US food prices will rise 3-4% this year, roughly twice the general inflation rate. In 2010, food prices increased by the slowest rate since 1962
- If oil were to remain between $90-$100/barrel this year, economic growth (GDP) could decline by approximately 0.8 percent. The reason is that gasoline as a share of retail sales = 10.34 percent. As the percentage rises, consumers spend less elsewhere in the economy. Last week, Q4 GDP was revised lower to 2.8 percent from the original estimate of 3.2 percent.
- Wall Street Bonus-2010 scorecard (source: eFinancialCareers.com)
- Average Wall Street bonus in 2010: -5%
- Respondents on Wall Street who saw bonuses decline: 19%
- Respondents on Wall Street looking for new jobs: 37%
Mon 2/28:
8:30 Personal Income &Spending
9:45 Chicago PMI
10:00 Pending Home Sales Index
Tues 3/1:
Automobile Sales
10:00 ISM Manufacturing Index
10:00 Construction Spending
Fed Chair Bernanke gives his semi-annual report on monetary policy to the Senate Banking Committee
Weds 3/2:
7:30 Challenger Job Cut Report
8:15 ADP Employment
2:00 Fed Beige Book
Thurs 3/3:
8:30 Productivity and Costs
8:30 Weekly Claims
4:00 Fed Balance Sheet
Fri 3/4:
8:30 Employment Report
10:00 Factory Orders
