Stock Market Rally
It was one ‘heck’ of a stock market rally this past week, as equities had their best weekly showing since the fall of 2008. Thanks to strong retail data from black Friday; signs that the European leaders were moving towards a resolution of that continent’s debt crisis; and a better-than-expected employment report, stocks took off for the moon. It was a week that saw just eight stocks in the S&P 500 index fall, and it followed the worst Thanksgiving week since 1932. And although the trading volume was somewhat ‘light,’ there is no doubt that the U.S. economy is finally gaining some strength, albeit at a slow pace. The biggest risk out there as far as equities go, continues to be the European sovereign debt crisis.
This week’s economic calendar is relatively light. International trade figures and the ISM nonmanufacturing index are the main events for the week. However, investors will also be digesting factory orders (Monday) and the first reading of December consumer sentiment on Friday. Also on Friday we have the European heads of state trying to formulate some solution to their sovereign-debt crisis. Look for some sort of aggressive fiscal integration along with tight budget constraints, all led by the country of Germany. Many analysts also think that the European Central Bank could cut interest rates at its meeting on December 8, in addition to other steps to ease strains for the European financial system. There’s no doubt that December promises to be an interesting month, so until next week, take care!!
Sources: Barron’s, Wall Street Journal, Assoc. Press, Econoday, Bloomberg, Dow Jones & Co., Briefing.com, Gorilla Trading
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.