Money Watch Weekly Wrap
Investors brushed aside international concerns in Japan, Libya and Portugal (S&P downgraded the rating on Portugal's debt, after Prime Minister Socrates (yes, that's his name!) resigned following Parliament's rejection of his austerity plan) and rotten housing numbers in the US (both new and existing home sales plunged last month, as prices keep dropping); and instead focused on mega deal-making (AT&T buying T-Mobile) and the US recovery (US GDP revised to 3.1 percent from 2.8 percent) and bought stocks.
Say goodbye to that 6.4 percent correction, and enjoy the fact that US stocks are now up 4.5 percent since March 16th-at least for now! Commodities are also roaring back, with oil leading the way.
- DJIA: 12,220, up 3% on week, up 5.6% YTD (Biggest weekly percent gain since the week ended 7/23/10)
- S&P 500: 1313, up 2.7% on week, up 4.5% YTD
- NASDAQ: 2743, up 3.7% on week, up 3.4% YTD
- May Crude Oil: $105.40, up 3.5% on week
- April Gold: $1426.20, up 0.7% on week
FACTOIDS OF THE WEEK: Corporate Profits edition
- The BEA said corporate profits rose 29.2 percent in 2010, the fastest growth in over 60 years
- Q4 2010 financial sector PROFITS were $426.5B
- Q4 2008 financial sector LOSSES were $65.2B
- The financial industry now accounts for about 30 percent of all operating profits.
- The financial sector accounts for less than 10 percent of the value added in the economy
- GE reported worldwide profits of $14.2B, of which $5.1B came from US operations and paid (wait for it...) NO corporate taxes
Mon 3/28:
8:30 Personal Income and Spending
10:00 Pending Home Sales
Tues 3/29:
9:00 S&P/Case-Shiller Home Price Index
10:00 Consumer Confidence
Weds 3/30:
10:00 Challenger Job Cut Report
ADP Job Employment Report
Thurs 3/31:
8:30 Weekly Claims
9:45 Chicago PMI
10:00 Factory Orders
Fri 4/1:
8:30 March Employment Report
10:00 ISM Manufacturing Index
10:00 Construction Spending
March auto sales
