Stock Market Update -Aug 16th

The market finally pulled back a little this week. The consumer confidence report on Friday, showing a lack of confidence, helped to push the market lower. We are seeing a lot of red on the sector chart for this week (see below), though we seem to be stuck in a trading range so far this month.

New Unemployment claims were below 600,000 again, this time at 558,000, still a big number. Also, five more banks were shut down by regulators, including Colonial, the biggest bank failure for 2009 (list).

Commodities: Oil prices fell to just under $68 per barrel (looks like that double top I mentioned last week might be playing out). Gold closed the week around $949, the US Dollar didn't change much for the week, and Bond prices rallied. Sugar hit a record high again.


Next week we get a few economic reports. Earnings season is pretty much winding down at this point.

Market analysis: This week we'll see if the market continues to stall out at this level, or if it regains some strength. Friday is options expiration day for August, so we could hang around these levels all week (1000 on the S&P500 and 2000 on the NASDAQ).

2009 Is Looking an Awful Lot Like 2008
U.S. Economy's Only a Quarter-Way Through Massive Inventory Correction
Why Another Stock Market Collapse Could Be Imminent
Why This Rally Will Continue
Markets Will 'Abruptly' Drop 25-50%: Strategist
US Home Foreclosures Set Another Record in July
Almost one-third of home loans are under water

BB&T Acquires Colonial as Regulators Close Five U.S. Lenders
Regions Financial: Sitting on a $22.8 Billion Sink Hole?
Toxic Loans Topping 5% May Push 150 Banks to Point of No Return
China's recovery: Is it for real?
High Sugar Prices Have Food Producers Worried
Consumer prices in largest annual fall since '50
Something Is Rotten In The State Of Wall Street