The Four Sisters were able to finish the week higher led by the NDX despite turmoil in the financial complex. Risk remains high as AIG’s results confirmed the credit disaster is not over. However, the SPX was able to overcome short term resistance of 1275 which bodes well for this latest rally to continue. As stated two weeks ago, we target a move into the 1325/1350 area on the SPX before the rally hits its next resistance level.
Top Headlines
Oil prices continued to move lower as traders are now focused on demand worries as opposed to tight supplies. Also, the dollar strengthened against the euro as the ECB left rates unchanged this week and gave a gloomy outlook for economic growth. (8/8)
Opening ceremonies for the 2008 Beijing Olympics begin tonight. Over 90,000 people will be on hand for the three hour show. (8/8)
As expected the Fed held tight on interest rates leaving the benchmark yield at 2%. Risks to growth still exist and for now their hands are tied. (8/5)
The Labor Department said productivity slowed to a 2.2% pace in the spring and workers’ compensation also slowed. (8/8)
Following in Freddie Mac’s (FRE) footsteps, mortgage finance company Fannie Mae (FNM) posted a 2nd quarter loss that was more than triple Wall Street estimates. Conditions in the housing market continue to deteriorate. (8/8)
Proctor & Gamble (PG) overcame high input costs and posted a 33% rise in profit. Emerging areas such as China and India continue to boost sales. (8/5)
Networking giant Cisco Systems (CSCO) jumped on Wednesday after posting solid results in a challenging environment. (8/6)
Winners & Sinners for the Week of 8/4/2008
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