July 13 - weekly recap

For the week, all indices have finished lower again, with Dow Jones (a worthless index according to some) closing at 11,000.54, just a hanging chad from the psychological threshold of 11,000. Some analysts see a short 5-10% rally, but the markets will continue to drop.

Dow Jones Industrials Close: 11,000.54 % change: YTD: -16.32 wk: -1.67
Nasdaq Composite: Close: 2239.08 %change: YTD: -15.58 wk: -0.28
S&P 500: Close: 1239.49 %change: YTD: 15.59 wk: -1.85

News and Events:
• Retailers reported better-than-expected June results helped by the federal checks and heavy spending at discounters. Sales may go up 4.3%, beating 2%-3% forecasts.
• IMF says that the global economy is teetering between “the ice of recession and the fire of inflation”. Global recovery is expected in Q1 ’09, led by a better-than-expected Q1 in U.S.
• The siblings, Fannie Mae and Freddie Mac took a dive of 45% and 47% respectively, on fears that some government intervention may be needed.
• Oil keeps going up, like there is no tomorrow. All sorts of supply fears – strike in Brazil, militant threats in Nigeria, rising hostilities in Iran, decline in the dollar – sent investors rushing back in the energy markets. The crude passes $147 for first time, before settling at $145. Anybody cares to guess a top price?
• GE’s net income fell 6% vs. a year earlier, with revenue rising 11% to $46.9 billion, slightly above Wall Street expectations.
• Lehman Brothers fell 40% last week, victim of a spillover effect from Fannie and Freddie. BofA, Merrill Lynch and Wachovia also hit new lows. Citigroup will sell its German retail operations to France’s Credit Mutuel for $7.7 billion in cash. Citi shares fell 9% to 16.19.
• IndyMac Bancorp, $32 billion outfit, has hit the skids. The regulators has closed it out and placed it under FDIC control because of the liquidity crisis.
• Pending home sales slide in May by 4.7%, which comes after April’s jump of 7.1%.