Stock Market Update -Mar 1st

This was another bad week for stocks. We heard from the Fed chairman, The President on the budget, General Motors, Citibank, more bad housing numbers, unemployment, and a knockout negative GDP number (-6.2%) -all contributing to the continued weakness. Oddly enough, the financial sector was the only gainer in the S&P 500 (see chart below).

Oil rose above $40 while Gold dropped from $1000 to around $940. The US Dollar also rose this week, while the 30 year Bond headed lower. Once again, first-time unemployment benefits crossed the 600,000 level and the nation's jobless rate is now at 7.6 percent. Two more banks were shut down this week.


Next week we get the monthly Payroll report on Friday. The major stock indexes are now testing the November lows -we'll have to wait and see if they rebound from those levels, or continue going down. (see sample trade here)

The European Central Bank and Bank of England will make interest rate announcements this week which could affect the currency market.

Some interesting stats from CNBC:
*The Dow & S&P turn in their worst February performances since 1933 when the Dow lost 15.62% and the S&P lost 18.44%
**The Dow turns in its biggest February point drop since its inception in 1896, losing 937.93 points for the month

Stocks finish down 50% from 2007 highs
S&P 500 Finishes At Worst Level Since December 1996
Will the banks survive?
Citigroup's Clever Plan to Shaft Taxpayers Again
U.S. government to own up to 36% of Citi
Citigroup Beats WorldCom, Sets Stock Trading Record
Is Citi the next AIG?
AIG: The bailout that won't quit
GM loses $9.6 billion in fourth quarter
California unemployment rate over 10%
JPMorgan warns of more housing woes
Trump Entertainment files for bankruptcy
Buffett's worst year

Obama unveils $3.6 trillion budget for 'new era'
Obama Plans to Reduce Budget Deficit to $533 Billion by 2013
Why Obama's Economic Plan Will Fail
U.S. Economy: GDP Shrinks 6.2%, More Than Estimated
Economy moving in reverse faster than predicted
Housing Prices in 20 U.S. Cities Fall a Record 18.5%
Europe's Crisis: Much Bigger Than Subprime, Worse Than U.S
Volcker: Crisis May be Even Worse than Depression