Oil prices continue to rise, reaching almost $120, though I think we could see prices pull back a bit from this level. Airline shares continue to lose ground based on high fuel costs. We also saw a rise in the US Dollar, causing some commodities to pull back a bit, with Gold also closing below $900 per ounce. News of rice rationing raised some eyebrows too (chart). The 10 year Note and the 30 year Bond continue to pull back, giving up quite a bit of ground in the past two weeks (more signs of inflation). Revisiting an old story on the bond insurers, shares of Ambac and MBIA tumbled this week on bad earnings. Meanwhile Starbucks also continues its downhill slide (recession indicator?), and yet another airline shut down operations -that makes 5 so far!
Next week we have a few potential market moving events -the Fed meeting on Wednesday (.25 point rate cut expected), also 1st quarter GDP, and the monthly Jobs report on Friday. Earnings reports continue next week with names like Exxon, GM, Countrywide, and MasterCard reporting.
News stories:
Don't trust this market rally
Microsoft's profit forecast disappoints
Gasoline could hit $7 a gallon in four years: CIBC
Sales of new U.S. homes plunged in March
More Pain for Ambac
Do MBIA and Ambac need to raise more cash?
Mission Accomplished? Bank Stocks Surge on Hopes the Fed's Done
U.K. unveils a $100 billion credit crunch plan
Dow at nearly 4-month high
Why the worst may be over
Americans tightening their belts
U.S. consumer sentiment at 26-year low
U.S. stocks set to face a less-friendly Fed
Dollar cruises toward best month in 2-1/2 years
What happened to $1,000 gold?
Other stories:
Microsoft XP soon to be X’d out
Microsoft’s Vista Problem
Brazil Halts Rice Exports to Ensure Domestic Supply
Stocks and Indexes mentioned in this blog are for educational and illustration purposes only.
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