Bartlett Market Week
Market Week: June 1, 2010
The Markets
Despite some ups and downs, domestic equities ended a dismal May on a better note than the previous week, though the Russell 2000 was still the only index in positive territory for the year. The Global Dow continued to suffer the most, though it improved after China announced it had no plans to host a fire sale of its European bond holdings. Led by new-home sales figures, U.S. economic news and corporate earnings reports were generally positive, but had difficulty overcoming anxiety about Europe.
Note: Market indexes listed are unmanaged and are not available for direct investment.
Last Week's Headlines
- Sales of new homes shot up 14.8% in April as buyers rushed to meet the deadline for the first-time homebuyer tax credit. The increase put sales of new single-family homes at their highest level since May 2008, according to the Commerce Department.
- The first-quarter Gross Domestic Product (GDP) number was revised downward slightly to a 3% annual rate instead of the 3.2% originally estimated by the Bureau of Labor Statistics.
- Orders for durable goods such as computers and aircraft were up 2.9% in April (nondefense spending was even higher, up 3.4%).
- Personal incomes were up 0.4% in April, but consumers weren't spending the additional money; according to the Commerce Department, consumer spending was flat compared to March.
- Sales of existing homes were up 7.6% in April, according to the National Association of Realtors. However, the supply of homes on the market rose even more; it was up 11.5%.
Eye on the Week Ahead
Investors will be watching to see if last week represented a turnaround for domestic equities or a pause in a downward descent. Friday's unemployment numbers aren't expected to show dramatic change.
Key data releases: Manufacturing, construction spending, auto sales (6/1); pending home sales (6/2); productivity (6/3); unemployment (6/4).
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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