Bartlett Market Week
Market Week: March 08, 2010
The Markets
Back to black: Domestic equities clawed their way back into positive territory for the year, with small caps continuing to lead the way. A lackluster week with continued light volume finished strong with a 122-point jump in the Dow and the sixth straight up day for the S&P 500. Bond investors took heart from strong demand for an auction of Greek bonds.
Note: Market indexes listed are unmanaged and are not available for direct investment.
Last Week's Headlines
- Despite expectations that February's dismal weather might also mean dismal unemployment figures, unemployment remained at 9.7% in February. The 36,000 jobs cut from nonfarm payrolls was a far cry from last year's triple-digit job losses, and hiring of temporary workers continued to increase. However, about 4 in 10 unemployed workers have been out of work for at least 27 weeks.
- Consumers opened their wallets a bit more in January. Personal spending was up 0.5%, though incomes rose only 0.1% during the month. At least some of that increased spending was the result of higher prices; personal consumption expenditures, including food and energy costs, were up 0.2% in January.
- Manufacturers remained in growth mode in February. Though the Institute for Supply Management's index of manufacturing activity fell slightly, it remained above 50 for the seventh straight month--a level that indicates expansion. Meanwhile, services sectors grew at the fastest pace in more than two years.
- Construction spending fell 0.6% in January. A 1.1% increase in residential construction project spending was offset by a 1.4% drop in commercial projects.
- U.S. business productivity in the second half of 2009 was even higher than previously estimated. Nonfarm businesses increased their output by 2.5%, in part because the total number of hours worked by the labor force fell. Labor costs dropped 1.7% in 2009, the biggest annual decline since the Bureau of Labor Statistics began keeping records in 1948.
Eye on the Week Ahead
With little economic data to digest, investors will be trying to sort out whether last week represented a pause in the pain or a renewal of the rally that began a year ago Tuesday.
Key data releases: International trade (3/11); retail sales (3/12).
Data source: Includes data provided by Brounes & Associates. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results.
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