Bartlett Market Week
Market Week: June 14, 2010
The Markets
On Monday, the Dow fell just below the lowest point reached during the May 6 flash crash. However, a strong bounce on Thursday helped give the S&P 500 its best week since early March, and the Dow once again closed above the 10,000 mark, leaving investors to wonder whether the recent downdraft is at an end or only taking a breather.
Note: Market indexes listed are unmanaged and are not available for direct investment.
Last Week's Headlines
- For the first time since last September, shoppers cut back on spending. According to the Commerce Department, U.S. retail sales were down 1.2% in May, though they were still 6.9% higher than a year ago.
- For a change, there was a glimmer of good news out of Europe. The European Central Bank raised slightly its estimate of eurozone growth for the rest of the year to between 0.7%-1.3%. However, though it still expects growth to pick up in 2011, the bank's current 0.2%-2.2% estimate was lower than its March forecast.
- Though credit card balances were down 12% in April, consumers borrowed an additional $1 billion. Auto, student, and personal loans were up, according to the Federal Reserve Board.
- The Commerce Department said the U.S. trade deficit rose slightly in April to $40.3 billion as exports fell and higher oil prices pushed up the cost of imports.
- Consumer sentiment rose to its highest level in more than two years. The University of Michigan/Reuters June index hit 75.5, up from its 73.6 reading in late May.
Eye on the Week Ahead
With earnings announcements largely at an end, there's little on the horizon to distract from economic data that will be dominated by housing and inflation. The simultaneous quarterly expiration of stock options, stock futures, stock index options, and stock index futures could bring volatility.
Key data releases: Treasury international capital flows, housing market index (6/15); housing starts, wholesale inflation, industrial production (6/16); consumer inflation (6/17); quadruple witching expiration (6/19).
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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