Crude oil fell again last week because inventories declined less than expected hurricane Dolly retreated from the Gulf’s oil rigs and stockpiles of natural gas increased.
Financial stocks retreated due to bad earnings from American Express and WaMu. I did however notice large buying volume the previous week which was not exceeded by selling volume this past week making me wonder if financials have not bottomed.
The stock indexes were mixed. The Nasdaq rose due mostly to lower oil prices and strong profits in some Nasdaq companies stocks such as Apple and Amazon. (Apple however fell when they forewarned about 4th quarter earnings.) Negative housing and jobless reports caused the other indexes to be slightly negative for the week.
Existing-home sales fell to a new low for June but were better than economists had expected. New home inventories for sale fell as builders took action to reduce them.
More 4th quarter earnings results were announced last week and they are down from the second quarter of 2007 for companies in the S&P 500 however excluding financials earnings are up. Technology earnings are mostly good and energy earnings were very strong. There continues to be concern over future earnings due to slowing global growth.
Have a great weekend and stay cool wherever you are.