| Market Update For Week Ending 7/4/2008 | Index | Close | Net Change | % Change | YTD | YTD % | | DJIA | 11,288.54 | -57.97 | -0.51 | -1,976.28 | -14.90 | | NASDAQ | 2,245.38 | -70.25 | -3.03 | -406.90 | -15.34 | | S&P500 | 1,262.90 | -15.48 | -1.21 | -205.46 | -13.99 | | Russell 2000 | 665.78 | -32.36 | -4.64 | -100.25 | -13.09 | | International | 1,917.68 | -39.55 | -2.02 | -335.68 | -14.90 | | 10-year bond | 3.97% | -0.02% | | -0.06% | | | 30-year T-bond | 4.53% | -0.00% | | +0.07% | | International index is MSCI EAFE index. Bond data reflect net change in yield, not price. Indices are unmanaged and you cannot directly invest in an index.
More market data Market Wrap
Stock prices around the world extended their slide in a holiday-shortened trading week as investors mulled new signs of weakness in corporate profits and the larger economy. Technology and small-cap shares that had previously been somewhat cushioned from the selling fared worst, driving the Nasdaq and Russell 2000 down 3% and 4.6%, respectively. For the year to date, indices from the blue-chip Dow industrials to the small-cap Russell 2000 are now down around 13% to 15%. Bond yields sank as investor demand for Treasury securities pushed prices higher. For more on recent trading activity, please read:
http://money.cnn.com/2008/07/03/markets/markets_newyork/index.htm Job Market Remains Fragile
The week's most important economic news came from the Labor Department's monthly job report, issued Thursday. According to the data, the unemployment rate remained at 5.5% in June while U.S. businesses cut an additional 62,000 people from their payrolls. Economists had expected roughly similar numbers, but some still warned that continued weakness in the job market could presage deeper trouble for the economy ahead. However, as oil prices keep rising, few expected the Federal Reserve to come to the rescue. How do employment conditions play into the larger economic picture, and what does this mean for Wall Street and Main Street alike? For more, please read:
http://www.msnbc.msn.com/id/25510193/ Bearish Conditions For The Dow Industrials
Now that the Dow industrials have slid into bear market territory, history can provide some insight into both how deep the losses have gone in the past and how long the market has tended to take to recover. Meanwhile, a somewhat less famous market barometer -- the Dow transports -- has recovered significantly from its own lows, leading at least a few investment gurus to argue that while stock prices may be correcting, a recession isn't inevitable. For more on bear markets and what they have historically entailed, please read:
http://bloomberg.com/apps/news?pid=20601110&sid=aghpdCq8n9xo |
