Investor's Business Daily reports on June 1st edition that M&A activity is set to rise by the second half of 2009, citing midmarket experts who see an upsurge led by distress sales. The impact of credit crunch is still persistent, but fading away.
Sunday, June 7, 2009
Weekly recap - June 7 2009
from weIMG newsletter
The week that was:
It was all about unemployment this week. On Wednesday the ADP report came in line closely with expectations, but on Friday the official employment report showed that job losses slowed to just 345,000 from 539,000 the previous month. Enthusiasm for this improvement was tempered by the jump in the unemployment rate to 9.4%, the highest in 25 years. Remember those bank stress tests from a few weeks ago? Well, the unemployment rate used for the 'worst case scenario' was 8.9%. Oops. No wonder the Treasury is forcing banks to raise more capital than initially required following the stress tests.
Equities:
This week we saw a continuation of the rally that just won't die. On the week the S&P500 gained 2.3%, the Dow (with its new makeup - GM and Citi are out, Cisco and Travelers are in) gained 3.1%, and the Nasdaq climbed 4.2%. Year to date now only the Dow is in negative territory, but just barely, down .1%. The S&P500 and Nasdaq are up 4.1% and 17.3%, respectively.
Palm released the Pre this week, which it hopes will compete with the Iphone. Leading up to the release, the stock has been surging. PALM closed the week up 6.6% at 13.00, but is up a whopping 323% on the year.
Bonds:
Yields on Treasuries continue to push higher leading to speculation that the Fed may be compelled to restart purchasing long-dated securities to keep the yields low. The 30-year yield climbed 32bps to 4.66% and the 10-year climbed 39bps to 3.86%. Not surprisingly then, the aggregate bond index ETF fell about 2%.
What to look for next week:
Thursday 7:30am - Retail sales
It was all about unemployment this week. On Wednesday the ADP report came in line closely with expectations, but on Friday the official employment report showed that job losses slowed to just 345,000 from 539,000 the previous month. Enthusiasm for this improvement was tempered by the jump in the unemployment rate to 9.4%, the highest in 25 years. Remember those bank stress tests from a few weeks ago? Well, the unemployment rate used for the 'worst case scenario' was 8.9%. Oops. No wonder the Treasury is forcing banks to raise more capital than initially required following the stress tests.
Equities:
This week we saw a continuation of the rally that just won't die. On the week the S&P500 gained 2.3%, the Dow (with its new makeup - GM and Citi are out, Cisco and Travelers are in) gained 3.1%, and the Nasdaq climbed 4.2%. Year to date now only the Dow is in negative territory, but just barely, down .1%. The S&P500 and Nasdaq are up 4.1% and 17.3%, respectively.
Palm released the Pre this week, which it hopes will compete with the Iphone. Leading up to the release, the stock has been surging. PALM closed the week up 6.6% at 13.00, but is up a whopping 323% on the year.
Bonds:
Yields on Treasuries continue to push higher leading to speculation that the Fed may be compelled to restart purchasing long-dated securities to keep the yields low. The 30-year yield climbed 32bps to 4.66% and the 10-year climbed 39bps to 3.86%. Not surprisingly then, the aggregate bond index ETF fell about 2%.
What to look for next week:
Thursday 7:30am - Retail sales
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