Stocks Move Higher
With our reversal of fortunes, the Standard & Poor’s 500 index popped by some 2.12%, to a level of 1,155.46. Keep in mind that by technical analysis, the S&P 500 had managed to fall to as low as 1,075 last Tuesday, which is more than 20% down from its 2011 high of 1,363.63 on April 19. Luckily it turned higher by the end of that day, thereby avoiding the technical definition of a bear market. Meanwhile the Dow Jones Industrial Average closed higher on the week by 1.74%, while the tech-laden Nasdaq Composite finished higher by 2.65%, to a level of 2,479. In addition, the smaller-cap stocks as represented by the Russell 2000 also finished higher by 1.87 percent, although this major domestic index continues to lag its brethren.
Other than the earnings reports, it will be a relatively light week when it comes to economic news. The main report on the week will be Friday’s retail sales report, which should show consumers still spending at a moderately strong pace. Later that day, consumer sentiment will be released which could show an improving consumer mood due mainly to lower gasoline prices. Other data on the week with include the Fed minutes on Wednesday and Thursday’s international trade date update on export trends.
Let’s hope that as we progress through the month of October that all the talk surrounding new jobs packages, restructurings in the Euroozone, new stimulus in the form of a QE3, will lead to less volatility and a continuation of this latest upward trend in stock prices. Until next week, take care!!
Sources: Barron’s, Wall Street Journal, Associated Press, Econoday, Gorilla Trading, Dow Jones & Company, Briefing.com
Audrea attended the University of Alabama in Tuscaloosa, where she majored in one of the first approved financial planning programs taught at the University level. In 1998 Audrea graduated from The University of Alabama in Tuscaloosa with a Bachelor of Science degree in Family Consumer Sciences & Financial Planning. Audrea has over 19 years of experience as a Financial Advisor with Money Management Services. She holds the designations of AIF® (Accredited Investment Fiduciary), CRPS (Chartered Retirement Plan Specialist) & CES™ (Certified Estate and Trust Specialist). As an advisor, Audrea specialized in comprehensive financial planning, estate tax planning, personal taxation planning, retirement income distribution planning, wealth accumulation, personalized portfolio management, and fiduciary investment management services.