Monday, October 01, 2007
Back to Normal?
Stocks end with minor losses Friday, but salvaged gains on the week. The Dow ended the day with a decline of 17.31 points to close at 13,895.63. The SPX gave up 4.63 points closing at 1,526.75.
Economic data was the focus Friday with several reports on the calendar. Data on personal income and outlays and the Chicago PMI got attention, as did the consumer sentiment release for September. Comments from current and former Fed leaders also got a lot of play Friday.
In economic news, personal spending in August rose 0.6 percent, 2-tenths higher than estimates. This is important because consumer spending maker up roughly two-thirds of economic activity. Inside the report, the core PCE price index fell 0.1 percent. This is a good sign, as it shows inflation pressures are easing and this leaves the door open for the FOMC to cut rates further at their October reading.
Oil prices started the session higher, but ultimately fell $1.09 a barrel to $81.79. Nonetheless, energy prices remain elevated and this raises concerns about consumer sentiment and spending. However, the University of Michigan consumer sentiment report showed only a moderate decline in September to 83.4 from 83.8 in mid-September, but even with August’s final figure.
Next week will see more economic news with many of the reports likely to impact trading. The biggie will be the job reports on Friday.
The major market indices rose slightly last week, but did see solid gains during both September and the third quarter. This means good news will have to continue for the bulls to remain in control of stocks.
Until next time.
Economic data was the focus Friday with several reports on the calendar. Data on personal income and outlays and the Chicago PMI got attention, as did the consumer sentiment release for September. Comments from current and former Fed leaders also got a lot of play Friday.
In economic news, personal spending in August rose 0.6 percent, 2-tenths higher than estimates. This is important because consumer spending maker up roughly two-thirds of economic activity. Inside the report, the core PCE price index fell 0.1 percent. This is a good sign, as it shows inflation pressures are easing and this leaves the door open for the FOMC to cut rates further at their October reading.
Oil prices started the session higher, but ultimately fell $1.09 a barrel to $81.79. Nonetheless, energy prices remain elevated and this raises concerns about consumer sentiment and spending. However, the University of Michigan consumer sentiment report showed only a moderate decline in September to 83.4 from 83.8 in mid-September, but even with August’s final figure.
Next week will see more economic news with many of the reports likely to impact trading. The biggie will be the job reports on Friday.
The major market indices rose slightly last week, but did see solid gains during both September and the third quarter. This means good news will have to continue for the bulls to remain in control of stocks.
Until next time.
# posted by Paul @ 1:52 AM 
