Keeping track of the market can seem overwhelming therefore I have decided to write a weekly summary of the few events that seem the most relevant to make it a cinch. All you have to do is read my One Minute Weekly Market Summary. I promise to keep it simple!
Camille’s One Minute Weekly Market Summary
Oil fell 12% from its July 14 record high due to easing tension in the Mideast and weaker demand. I heard on CNBC that Americans are actually driving less due to the high oil prices thereby helping to decrease demand! Yeah!
Citigroup announced their loss was not as bad as stock analysts expected it would be and profits at JPMorgan and Wells Fargo fell less than analysts expected. Freddie Mac and Fannie Mae huge mortgage companies got relief as the U.S. government backed a rescue plan. All of this eased fears about the financials a major catalyst in the recent market downturn however Merrill Lynch did announce a wider than expected loss.
The oil and financial improved news led the Dow Jones Industrial Average out of its four-week losing streak gaining 3.6% last week. The S&P 500 Index added 1.7% and the Nasdaq rose 2%.
A lot of companies are announcing their company earnings this month since they are on a calendar year and the June quarter recently ended. This causes market jitters since it is indicative of the economy and reveals whether companies have been profitable. Several tech companies announced earnings this week and they were mixed.
Inflation rose on the consumer and wholesale levels with producer prices rising 9.2% for the prior 12 months the fastest rise since the summer of 1981. Fed Chairman Ben Bernanke’s speech to Congress led watchers to believe that the Fed will not raise rates.