Bartlett Market Week
Market Week: November 16, 2009
The Markets
After rising 500 points over six days and hitting a level not seen since the day after last year's vice presidential debate, the Dow slipped a bit but still managed to stay above 10,000. The S&P 500 once again bumped its head against the 1100 mark, but couldn't quite break through.
Note: Market indexes listed are unmanaged and are not available for direct investment.
Last Week's Headlines
- An October Federal Reserve Board survey of bank lending officers showed that overall, credit continues to tighten for both small businesses and households. Approximately 45% of the banks surveyed reported making fewer commercial and industrial loans. And roughly half said that between now and February, they expect to reduce credit limits, raise required minimum credit scores, and/or increase annual fees for prime borrowers (for nonprime borrowers, the percentage planning such steps was even higher).
- U.S. exports rose 2.9% in September, but imports rose twice as much. The U.S. trade deficit, now $36.5 billion, is 18.2% higher than in August, and the trade deficit with China alone is at a year-long high.
- In other deficit-related news, President Obama and Treasury Secretary Geithner both worked overtime to try to reassure Asian nations that the U.S. recognizes the global need for a strong dollar and will work to reduce the trade deficit as the economy begins to recover.
- The European Union's economy followed that of the U.S. in growing during the third quarter. The 0.4% growth was the first positive figure since the first quarter of 2008.
- The Reuters/University of Michigan survey of consumer confidence hit its lowest level in three months, dropping from 70.6 in October to 66. And unfortunately, respondents' expectations for their prospects a year from now weren't much better. In October, the consumer expectations reading was 81; in November, it fell to 67--the lowest level since April.
Eye on the Week Ahead
October retail sales may suggest what's in store for the holiday shopping season. Investors will keep a watchful eye on inflation data, and options expirations at week's end could bring volatility.
Key data releases: Retail sales (11/16); wholesale inflation, industrial production (11/17); consumer inflation, housing starts (11/18); leading economic indicators (11/19).
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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