July 26, 2010
Good morning. It was a very strong week for the market last week, despite a sell-off on Wednesday attributed to Federal Reserve Chairman Ben Bernanke’s testimony before Congress. In that testimony before the Senate Banking Committee the Fed Chairman referred to the economic outlook as “unusually uncertain,” and the market responded with a two percent sell-off into the close on Wednesday. The market recovered that amount and more on a big rally Thursday that continued into Friday. For one week, at least, the market focused on generally good earnings, increased revenues, and good guidance going forward, rather than the tepid Economic numbers.
May 18, 2009
Good morning. The market had its first losing week in a while last week, but not horrible. The SPY was down 4.27 on the week, from 92.98 to 88.71, leaving it down 4.5% on the week and 1.7% on the year. Some of the sell-off last week was due to a huge supply of new issues, as many of the large banks and some others went out to raise new capital. The good news is that most were able to find new sources of capital at these levels, so at a lower level the market is still performing its main function, providing capital to those firms in need.