Join        Login             Stock Quote

Pit Guru Weekly Market Review

 March 31, 2008 04:06 PM

The Financials Pit Review: By PitGuruKalvin O'Brian

U.S. Economy

Last week, the U.S. Commerce Department announced that consumer spending was up .1% as expected and personal incomes were also up .5% in February.  The University of Michigan's consumer sentiment index fell from 70.8 to 69.5 in March which was weaker than expected. During a time of the biggest housing plunge in over 20 years, continued job losses and the general expectation for America to slump into recession there is an obvious watch for a slowdown in consumer spending.  In a continuing effort to help banks stay liquid, the Fed announced that it will offer $50 billion on the 7th and 21st of April.  This week, Fed Chairman Ben Bernanke will testify before Congress after his attempts to calm the financial markets by lowering rates and extending credit to non-banks.  It is expected that the jobless rate rose and payrolls shrank by between 50,000 and 63,000 according to some estimates.  There is heavy intervention to try and breathe life into the market.  I expect after Bernanke's testimony the market will get a spark but there is still room to move to the downside. Continuing conversations calling to revamp financial industry policy will unfold in the weeks to come, but anything that gives the market jitters will also bring in selling pressure and uncertainty.


The unemployment rate in Japan increased from 3.8% to 3.9% in February.  It was also announced that consumer prices were down .2% in February, but up 1.0% from a year ago.  Japan has also cut production for the second straight month in February.  The cut is due to the countries biggest exports market the United States verging on a recession.  This is the first back to back decline in production in nine months.  This is a true indicator that companies are concerned word demand is decreasing as the U.S. economy slows.  I would not be surprised to see some intervention coming soon and I am looking for the yen to trade lower this week.

Across the pond the U.K.'s Office for National Statistics announced real GDP was up .6% in the fourth quarter of 2007 and up 2.8% from a year ago, slightly less then expected. The confidence level in the British nation for property has slipped, reflected in the six straight month of lower prices for homes.

Next Page >>123
iOnTheMarket Premium


Comments Closed

rss feed

Latest Stories

article imageUS REITs Edged Higher Last Week As Emerging Markets Slumped

Real estate investment trusts (REITs) in the US took the lead in last week’s shortened holiday trading week read on...

article imageA Contrarian Perspective On The Short EuroTtrade

As the euro continues to drift lower, it has become the accepted wisdom that we are headed for parity with read on...

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.