Market Week in Review
I want to write a Week-in-Review for my Stock Market Game participants this fall, so I'm practicing this summer. The issues to be solved are where to obtain the information and how to organize and link it to the curriculum. This is my first attempt sans the curriculum links---one thing at a time.
The Market Week That Was 6/1/07
MARKETS
The Nasdaq hit a 61/2-year high. (It's been a long time coming!) Friday, the small companies led the way, hence the increase in the Nasdaq. Overall, the markets made modest gains this week. The S&P 500 and the Dow have been up eight of the past 9 weeks. (That is worth celebrating. I do like all the green numbers on my portfolio computer screen.)
Consumers remain confident and personal consumption is up. (I did my share this week---a new laptop padded sleeve, new laptop bag, and a string of beads I've coveted for the past year---20% off, how could I resist. Daughter had not gotten them for my B-day, Christmas, nor Mother's Day.)
JOBS
157,000 new jobs---expected 130,000 for this month. This was up sharply from April's 2-year low of 80,000. The gains came in the financial and health care sectors (good places to look for jobs). Construction hiring was flat with a loss in manufacturing. However, not all is bad----manufacturing activity is up.
GDP
GDP grew 0.6% in the 1st quarter. This is the lowest growth since 2002. However, the Midwest is showing a sharp increase in business activity, which may be a sign that growth is beginning to increase.
The housing slump will continue to suppress growth (bad for my Lowes stock). However, additional business and consumer spending/demand decrease the chance of a sharp economic slowdown.
MERGERS/ACQUISITIONS
Wachovia, the 4th largest bank, is buying A. G. Edwards. This will make it the 2nd largest retail brokerage firm.
FEDERAL RESERVE
The Fed held interest rates at 5.25%. They didn't cut interest rates because they are still worried about inflation.
INFLATION CONCERNS
Jobs grew faster than the forecast (can't win). Crude oil "surged" $1.06 to $65.08. (Our gasoline went down $0.04.) Gold went up in reaction to inflation concerns.
THE WEAK DOLLAR
Exports are up (the good side of the weak dollar). Exports are also up because of the strong growth overseas. (International growth stocks to consider?)
12:23:15 PM 
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