Is the market ready for a comeback?
Just a couple of weeks ago, on October 3rd, the S&P 500 was down 12.6% for the year and things weren’t looking too good for a comeback. Since that time, it has trimmed the loss to only 2.6% and needs to gain just 33 points to get above the 1,257 where it started the year. If the S&P 500 finishes this year with a gain, it will be its biggest comeback since 1984!
What has caused this turnaround? One reason is that investors are becoming more confident that Europe will protect its banks from huge losses on Greek bonds if that country fails to make good on its debt. Another reason is that many people still think stocks are undervalued and that company earnings are going to be better in the third quarter than many analysts expect.
Since July, analysts have continually cut their earnings estimates based on fears that the U.S. is heading into a recession. Much to their surprise though, positive reports on retail sales, applications for unemployment benefits, and the number of jobs added in August have been better than expected. So while some have been pricing the market in expectation of the worst, things haven’t been as bad as many expected.
Seasonal investor behavior could also be at play here. If you look at the 30-year time period from 1981-2010, you will find that the average price return for the S&P 500 Index has been 7.14%. While this is significant, it is even more impressive that the index ended positive 24 out of 30 years, or 80% of the time! "Positive market psychology hits a fever pitch as the holiday season approaches and does not begin to wane until the spring," according to the Stock Trader's Almanac.
While Europe’s debt problems still aren’t solved, and it is definitely too early to count on gains for the year, we are happy to see this positive momentum in the stock market and hope it continues.
ECONOMIC CALENDAR: Monday – Empire State Mfg Survey, Industrial Production
Tuesday – Producer Price Index, Treasury International Capital, Housing Market Index, Ben Bernanke Speaks at 1:15 PM ET
Wednesday –Consumer Price Index, Housing Starts, EIA Petroleum Status Report, Beige Book
Thursday – Jobless Claims, Existing Home Sales, Philadelphia Fed Survey, Leading Indicators
Data as of 10/14/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 5.98 -2.63 4.33 -2.07 1.22
Dow 4.88 0.58 4.93 -0.53 2.46
NASDAQ 7.60 0.56 9.55 2.63 5.66
MSCI EAFE 6.41 -8.74 -7.08 -2.96 2.64
10-year Treasury Note (Yield Only) 2.07 N/A 2.49 4.81 4.66
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.
HEADLINES:
Earnings season is in full swing as the week ahead includes reports from nearly half of the Dow's 30 components, including Intel, McDonald's, and General Electric, and 96 members of the S&P 500 including, Apple, Southwest Airlines, and Chipotle Mexican Grill. S&P 500 company earnings are expected to have climbed 23% in the third quarter of 2011, according to earnings tracker Thomson Reuters. Revenues of the companies in the benchmark index are expected to have risen 10%.
France and Germany have less than a week of frantic negotiation ahead to resolve key differences on a “comprehensive plan” to end the Eurozone sovereign debt crisis after the world’s leading finance ministers put the ball firmly in their court over the weekend. The Group of 20 richest nations told the Eurozone that by the European summit next Sunday it should: agree on the losses the private sector should take on Greek debt; arrange a credible plan for the recapitalization of Europe’s banks; and install a firewall to protect other countries from Greece’s woes.
Throngs of Apple fans lined up in the wee hours Friday outside the company's flagship store in Manhattan to be among the first to get their hands on the new iPhone 4S. Two hours before Apple's new smartphone was slated to go on sale, hundreds of aspiring buyers filled the plaza outside the Fifth Avenue glass cube, echoing scenes that had already played out earlier in the day in Australia, Japan, Germany, France, and other Apple stores around the world.
Investors are hoping for a 4th quarter rally
The S&P 500 has produced a positive total return in the 4th quarter (i.e., October-November-December) in 16 of the last 20 years (i.e., 1991-2010), including a +10.7% gain last year. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market (source: BTN Research).
The Bureau of Labor Statistics released its monthly Employment Situation Summary on Friday, and the data conclusively proves that the U.S. is not in a recession. To many the data would seem to indicate that it also shows that the odds of entering into one are much lower than some reports in the media might suggest.
Nonfarm payroll employment edged up by 103,000 in September, and increased by 202,000 if you include upward revisions for July and August. This significantly outpaced consensus expectations of a mere 60,000 gain. And while the report reflected the return of about 45,000 Verizon workers who had been on strike in August, the increases are still significant. Also striking is the fact that the number of weekly hours per worker increased from 34.2 to 34.3. While that may not seem like much of a jump, it is actually the equivalent of adding 320,000 jobs!
If you take a look at the jobs numbers over the past year, you will see that private sector payrolls have grown by 1.8 million, the workweek has lengthened, and hourly wages are up 1.9%. And while we acknowledge that the labor market is still far from operating at an optimal level, we are definitely seeing improvement!
As we hope this positive trend in hiring will continue, only time will tell if it can be more than a momentary bright spot. In the weeks ahead, investors will be looking for signs on the health of the economy from corporate earnings and what is still the biggest elephant in the room: Europe’s debt crisis. We will continue to monitor developments in these and other areas and will work diligently to keep you informed.
ECONOMIC CALENDAR: Monday – U.S. Holiday: Columbus Day
Tuesday – FOMC Minutes
Thursday – International Trade, Jobless Claims, EIA Petroleum Status Report, Treasury Budget
Friday – Retail Sales, Import and Export Prices, Consumer Sentiment, Business Inventories
Data as of 10/07/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 2.12 -8.12 -0.22 -2.88 0.78
Dow 1.74 -4.10 1.41 -1.26 2.17
NASDAQ 2.65 -6.54 4.01 1.56 5.44
MSCI EAFE 2.51 -14.2 -10.8 -3.51 2.32
10-year Treasury Note (Yield Only) 1.92 N/A 2.40 4.70 4.50
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.
HEADLINES:
Steve Jobs, the co-founder and board chairman of one of the world’s greatest companies, will long be remembered as a remarkable man. We have truly lost a great visionary who enriched the lives of millions by means of technology. Born in 1955 to a world of rotary phones and room-sized computers, he left behind a world where over 100 million people carry a small device called an iPhone – which is both a phone and a computer – in their pockets. Steve Jobs is a man who will unquestionably be missed.
Business-jet sales may increase worldwide starting in 2012 as emerging-market demand picks up. Purchase expectations are growing in Asia, followed by the Middle East and Africa, while the free-fall in developed markets like North America following 2008’s recession has stabilized, according to an annual survey of 1,500 companies by Honeywell International Inc., a New Jersey-based avionics and cockpit-instruments maker.
Consumers cut their borrowing in August by the most in 16 months. Fewer people used their credit cards. And a measure of demand for auto and student loans fell. Total borrowing dropped $9.5 billion in August, the Federal Reserve said last week. In July, borrowing increased $11.9 billion.
While the nation added jobs last month, public schools lost 24,400 positions – the most of any category. Local government in total shed 35,000 jobs. Teachers continue to get pummeled as state and local governments digest budget cuts for fiscal 2012, which began in July in most states.
QUOTE OF THE WEEK:
Worse Quarter since the Fall 2008, What’s next?
The Market had it’s worse quarter since 2008. The leading averages have now been down five months in a row. The S&P 500 lost 14% for the 3rd quarter. European markets lost 23% for the same period. Here is a recap of the past 3 months:
July – After a volatile first half that eventually ended U.S. stocks in positive territory, the debt ceiling debate quickly took center stage. As policymaker’s debated ways to cut spending and raise the nation’s borrowing limit, stock markets faltered.
August – Following an eleventh hour debt ceiling compromise, Italy rose to the forefront of debt problems in Europe and anemic economic news pushed investor sentiment downward. As fear dominated the markets, major indexes erased their gains for the year during the first week of the month. Hitting especially close to home, S&P downgraded the nation’s bond rating from AAA to AA+ on August 5th.
September – After a brisk market rally early in the month, European debt woes dominated investor sentiment once again. By the middle of the month, tables turned dramatically as many asset classes experienced their worst weeks in years. Even gold faced its largest monthly fall since October 2008. In conjunction with persistent concerns about European debt and a weakening U.S. economy, the Fed's Open Market Committee (FOMC) launched “Operation Twist” on September 21st, leading to further selloffs.
In reading the quick summary above, it’s easy to see why investors could be forgiven for feeling somewhat dazed and confused. The last three months have been rough. The stream of bad news coupled with occasional flickers of optimism led to one of the most volatile periods ever for stocks. The Dow moved more than 200 points on 18 separate times during the quarter, swinging by more than 400 points on four consecutive days in August alone. When you couple the nauseating stock market performance with anxiety about the European sovereign-debt crisis and headlines forecasting a double-dip recession, it’s no wonder people are running scared.
Now What?
While past performance doesn’t guarantee future results, some investors are taking comfort in the fact that the third-quarter, historically, has been the worst of the year, and the fourth-quarter is typically the best. And while some are finding it difficult to be optimistic, others are turning their sights to corporate earnings for a barometer of where the economy is headed. Companies will start releasing their third-quarter reports in coming weeks.
Interestingly, the third-quarter edition of the Investment Manager Outlook (a survey of investment managers conducted by Russell Investment Group and released 9/29) found that 78% of managers do not expect the U.S. to slide into a double-dip recession. “Strong corporate balance sheets and high corporate profits should ensure that the United States avoids a new recession. However, Russell also believes, along with the majority of the managers surveyed, that we will see a slow-growth trend for the next several years, as well as ongoing market volatility,” the report stated. We agree with this assessment.
As long as confidence in the global economy and government policymakers remains shaky, markets are likely to be volatile. Even so, we still believe that fundamentals are strong in many areas, and we know that successful investing is a long-term project undertaken with risk and uncertainty. Equity markets do not move in a straight line, and neither do economic recoveries. Despite being painful, volatile periods like this historically run their course and then come to an end.
We understand that fear can be contagious, but we urge you not to let yourself be overtaken by it. While many types of investments are currently experiencing a difficult period, we believe that those who remain committed to their long-term investment plan will be rewarded over time.
If you have any questions or would like any guidance, please don’t hesitate to reach out to us. We consider it a great privilege to help you protect what you’ve worked hard to earn.
ECONOMIC CALENDAR: Monday – ISM Mfg Index, Construction Spending
Tuesday – Motor Vehicle Sales, Factory Orders
Wednesday –ADP Employment Report, ISM Non-Mfg Index, EIA Petroleum Status Report
Thursday – BOE Announcement, ECB Announcement, Jobless Claims
Friday – Employment Situation
Data as of 09/30/2011 1-Week 3Q YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 2.11 -14.3 -7.73 1.68 -2.63 1.15
Dow 3.55 -12.1 -3.66 3.39 -0.90 2.61
NASDAQ -0.10 -12.9 -6.49 4.73 1.97 6.55
MSCI EAFE 4.81 -17.8 -13.4 -7.33 -3.26 2.64
10-year Treasury Note (Yield Only) 1.81 N/A N/A 2.52 4.63 4.57
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.
HEADLINES:
According to a Bloomberg Gallup Poll, 63 % of global investors approve of President Barack Obama's plan to tax people with annual incomes of $1 million or more. The so-called Buffett rule is a nod to investor Warren Buffett and his New York Times op-ed piece calling on the wealthy to pay their fair share.
Consumers made less money and spent less money in August, according to a report released Friday. The Commerce Department said personal income declined by 0.1% in August. Consumer spending rose just 0.2%, and was flat when adjusted for inflation.
An examination of credit-rating agencies by the Securities and Exchange Commission staff found repeated instances of the companies failing to follow their own procedures or adequately manage conflicts of interest, according to an S.E.C. staff report issued Friday. The examinations were mandated in the Dodd-Frank regulatory law passed last year after numerous investigations into the causes of the financial crisis. Several of those inquiries found that the rating agencies issued inaccurate reports, failed to report or manage conflicts of interest, and put generating revenue ahead of rigorous financial analysis.
Eurozone inflation has surged unexpectedly to a three-year high of 3%, adding to the dilemma facing the European Central Bank as an escalating debt crisis pushes the region towards recession.
Market sell off has investor’s concerned
After the brisk market rally we experienced two weeks ago, the tables turned dramatically last week as many asset classes experienced their worst week in years. The Dow tumbled 6.4%, the S&P 500 fell 6.5%, and the Nasdaq slid 5.3%. Even gold shed nearly 10% over the course of the week for its biggest drop on a percentage basis in 28 years.
In conjunction with persistent concerns about European debt and a weakening U.S. economy, the presumed trigger for the panic was that the Fed's Open Market Committee (FOMC) launched “Operation Twist” on Wednesday. The move, designed to bring interest rates down and stimulate the housing market, scarcely proved to reassure investors. “Operation Twist” calls for the Fed to sell short-term securities (maturing in three years or less) from its sizeable $1.7 trillion holdings of government debt and use the $400 billion raised to buy longer-term mortgage-backed securities maturing in six to 30 years.
At the same time, the Fed accompanied its announcement with a lukewarm (at best) assessment of the economy. While stating that they continue to expect some pickup in the pace of recovery over coming quarters, they cited “significant downside risks to the economic outlook, including strains in global financial markets.”
While the stock market has undeniably taken a big hit, and investor confidence has been badly shaken, few things fundamentally changed from two weeks ago. In essence, market participants reacted to renewed concerns that policymakers aren’t doing enough to stabilize the global economy.
Notably, the Group of 20 major economies, including the United States, European Union, and China, issued a statement Thursday saying that it stands committed to "take all necessary actions to preserve the stability of banking systems and financial markets as required."
It is likely that we will continue to experience a period of volatility as investors wait to see if the words of policymakers lead to tangible actions.
ECONOMIC CALENDAR: Monday – New Home Sales Tuesday – S&P Case-Shiller HPI, Consumer Confidence Wednesday –Durable Goods Orders, EIA Petroleum Status Report
Thursday – GDP, Jobless Claims, Pending Home Sales Friday – Personal Income and Outlays, Chicago PMI, Consumer
Sentiment
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.
HEADLINES:
Last week, the government released the latest census report showing the poverty rate rose to a 17-year high. A whopping 46.2 million people (or 15.1% of the U.S. population) live in poverty, and 49.9 million live without health insurance.
BP is preparing its rigs and workers to resume full drilling operations in the Gulf of Mexico, seeking to end a 17-month production slump following the worst U.S. oil spill.
The International Monetary Fund annual meetings wrapped up in Washington on Sunday with no immediate consensus on the solution. Participants said they were waiting for the ratification of the action plan agreed on July 21 by the Eurozone, particularly by the German Bundestag this week, before starting serious negotiations on increasing the rescue fund’s firepower or asking for a bigger write-down in private sector holdings of Greek debt.
For the first time in months, retail gasoline prices have fallen below $3 a gallon in places, including parts of Michigan, Missouri, and Texas. And the relief is likely to spread thanks to a sharp decline in crude-oil prices. The national average for regular unleaded gasoline is $3.51 per gallon, down from a high of $3.98 in early May. Last week's plunge in oil prices could push the average to $3.25 per gallon by November, analysts say.
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Introducing Ken’s new book: Can I Retire?
http://caniretirebook.com/
If you would like a Free Copy, please email us your name and address
Excerpts from the book:
“Where you go and what you do after you retire all depends on the individual. Whether its travel, volunteering, spending time with family or friends, there’s no end to what you can do once you’ve retired. As long as you’ve planned and prepared for it as best you can by budgeting, consulting with advisors, investing and comparing plans, then your golden years should be both merry and bright.” – Ken Mahoney
A lot of people make the mistake of embarking on their retirement years without their family’s support, or without thinking it through all the way. That’s the first mistake they make, and one that can cost them a smooth transition into retirement. Don’t be one of the people who make so many mistakes during their first year of retirement and spend several more years just making up their losses, which, with the benefit of hindsight, they could have avoided.
While many books discuss retirement in terms of accumulating wealth, it is equally important to consider how you see yourself in retirement – where you would like to live, what activities you would like to pursue and the associated costs. Once you understand what you want in terms of lifestyle, I think you'll start looking forward to answering the question, “Can I retire?”
Can I retire? Most people today make that decision predicated on their financial situation. But there are other components of retirement I would like you to consider. Most importantly, I would like you to consider having purpose in your life during retirement. The transition of going from working to retirement or from structured to non-structured can be difficult. So it’s important to “transfer” the structure of the “work world” to your own new structure of retirement.
What people are saying about Can I Retire?
This review is from: Can I Retire? (Your Personal Guide To Retirement) (Paperback)
I'm 46 years old and need to be thinking about my "golden years." From what I can see, they aren't always golden for retirees, especially not financially. I want to plan now and yet I wasn't sure where to begin. Can I Retire? (Your Personal Guide To Retirement) was exactly what I needed right now. It helps me get a feel not only for the sum I'll have to live on but also enables me to plan around contingencies such as problems in the future, health situations, and so on. I NEVER would have taken into account all the factors that go into retirement with this book. I do feel kind of smothered by what is in store for me now that I am working out my plan, but I would much rather feel like a "dummy" now than when I'm 65 and have nothing!!! NOW I have time to actually WORK MY PLAN and that's what I'm going to do.
This review is from: Can I Retire? (Your Personal Guide To Retirement) (Paperback)
Just getting by day to day is more of a financial challenge than it's been in several generations but RETIREMENT? Extremely hard especially when we might not be able to rely on social security. We are nearing retirement and have some saved but we certainly have a ways to go before we could ever consider stop working if we want to maintain an okay-to-decent lifestyle. I was thrilled with Can I Retire because the author, Ken Mahoney, obviously knows his stuff and has counseled many people before. His writing is clear and concise and he answers questions people like us - complete novices when it comes to financial stuff like "derivatives" and things like that! - have. For example, what helped us the most is how he guards us against retiring without knowing exactly where we stand before doing so and without having a plan. Too many retirees have found they have to come OUT of retirement to make ends meet and who wants to do that???
This review is from: Can I Retire? (Your Personal Guide To Retirement) (Paperback)
I loved the book. It was filled with smart, practical ideas that anybody can do in preparation for retirement. I recommend the book to anyone young or old, looking for ways to be smart about their money before and after retirment
Ten Years Later
For most of us, 9/11 feels like yesterday. For a younger generation, Sunday’s services etched a memory of that day onto minds too young to recall it. Three-thousand-six-hundred and fifty-two days have since passed, but as New York City Mayor Michael Bloomberg so poignantly stated, “We can never un-see what happened here.” While most Americans wish they never had to witness the events of that defining day, they are equally determined never to forget them.
The 10th anniversary closed a decade that witnessed two wars, massive changes in national security, the Great Recession, and most recently, the death of the elusive terrorist who masterminded the attack. And no longer is ground zero merely a reminder of what was, but a symbol of rebirth. With the breathtaking National September 11 Memorial now open and the yet-to-be-finished Freedom Tower rising 961 feet above the street where 2,983 lost their lives, history remembers the resilience of the human spirit.
The financial world also stands changed by the events of September 11. Once the physical financial center of the country, the area near ground zero has become largely an upscale residential neighborhood. Pre 9/11, tourists could visit the New York Stock Exchange and stand in a galley to watch the trading, but not anymore. Even though the building itself sustained no damage when the Twin Towers fell, the exchange has since been considered a target and the visitor center remains closed. On the floor of the exchange, traders must now go through security barriers and x-ray machines under the watch of armed officers – something those who have flown on a commercial airliner since 9/11 can relate to.
While Sunday marked a day of reflection and tears for many of us, and while both the tragedy and heroism of 9/11 will long be remembered, Americans will move forward this week. Concerns surrounding Europe’s debt crisis will rear their ugly heads again, and headlines about stock market volatility will doubtless be featured in the news. And when they are, we would all do well to keep things in perspective and be thankful for the life we enjoy, even if it has been altered by the events of September 11th, 2001.
HEADLINES:
Moments of silence were observed in New York City Sunday on the 10th anniversary of the terror attacks that destroyed the World Trade Center and killed nearly 3,000 people. "Ten years have passed since a perfect blue sky morning turned into the blackest of nights. Since then, we have lived in sunshine, and in shadow," said New York City Mayor Michael Bloomberg.
China’s record imports and a rebound in lending signaled strength that offers a bright spot in a global economy contending with Europe’s debt crisis and weakening U.S. job gains. Government reports in the past two days showed that shipments from abroad jumped 30% and new local-currency loans were a more-than-forecast 548.5 billion yuan ($86 billion).
The average price for regular gasoline at U.S. filling stations rose 5.76 cents to $3.6669 a gallon last week.
Bank of America Corp. is preparing to slash 40,000 or more jobs and close 10% of its branches nationwide. The details of the plan were not officially announced, but the information was disclosed by three Bank of America executives who have been briefed on the plan but were not authorized to speak publicly.
Unemployment and the stock market explained
The big news last week centered on the August jobs report, which was disappointing to say the least. Non-farm payrolls were unchanged in August but down 58,000 including revisions to June/July. The consensus expected a gain of 68,000. The unemployment rate remained unchanged at 9.1%.
U.S. stocks tumbled 2% on Friday in reaction to the news, as headlines showing zero jobs growth in August fueled investor concerns. And while the August numbers are certainly not attractive, there are a few underlying factors we would like to draw your attention to.
One of the reasons August’s numbers were so weak has to do with the Verizon strike, now over, that temporarily sidelined 46,000 workers. Were it not for that strike, private payrolls would have been up 62,000 including revisions. As it stands, workers on strike are counted as unemployed when they go on strike and are added as newly employed when they go back to work. Now that they have returned to work, a future employment report will show an increase of 46,000. It’s strange how the system works isn’t it?
There was also some positive news in Friday’s report. Civilian employment, an alternative measure of jobs that includes start ups, increased 331,000 in August, which is very encouraging. In general, when new businesses are starting up and hiring workers, it means the wheels of capitalism are turning in the right direction.
If you only look at the totals, it’s easy to say there was no employment growth in August, which is how most of the headlines read. But if you take time to look below the surface, a more balanced picture emerges. Much of August’s weakness can likely be attributed to financial turmoil in Europe, large swings in the stock market, and lawmaking that has brought much uncertainty to the hiring arena.
Although recession fears are still lingering, recent reports on auto sales, manufacturing and consumer spending suggest that the economy is still growing, albeit slowly. We believe future jobs reports will reflect that.
ECONOMIC CALENDAR: Monday – U.S. Holiday: Labor Day Tuesday – ISM Non-Mfg Index Wednesday – Beige Book
Thursday – BOE Announcement, ECB Announcement, International Trade, Jobless Claims, EIA Petroleum Status Report
Data as of 09/02/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 -0.24 -6.65 7.69 -2.09 0.36
Dow -0.39 -2.91 8.92 -0.39 1.30
NASDAQ 0.02 -6.50 12.7 2.62 3.74
MSCI EAFE 0.08 -9.42 2.35 -2.58 2.14
10-year Treasury Note (Yield Only) 2.19 N/A 2.63 4.73 4.82
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.
HEADLINES:
Bank of America Corp. and 16 other big banks have been hit with multiple accusations of securities-law violations and negligence in a series of lawsuits tied to more than $50 billion in mortgage securities. The lawsuits, filed late Friday by the Federal Housing Finance Agency, accuses lenders of selling bad mortgage securities to government-sponsored housing companies Fannie Mae and Freddie Mac.
The euro came under significant pressure in European trading Tuesday, pulling down other sentiment-sensitive currencies, such as the pound and Australian dollar, with it. A steady flow of negative newsflow out of the euro zone pushed it down about 0.6% – a big move for a major currency – against the dollar.
Though oil prices fell to near $88 a barrel Friday, crude has jumped about 16% since August 9th, bolstered by signs industrial production in the U.S. continues to expand. The Institute for Supply Management said Thursday that U.S. manufacturing grew for the 25th straight month while analysts had expected a contraction.
About 70,000 households and businesses along the Eastern Seaboard who lost power during Irene remain without it a week after the storm.