Click here for the Weekly Wrap by Briefing.com.
Bottom Line: Overall, last week's market performance was modestly positive. The advance/decline line rose marginally, most sectors advanced and volume was decent. Better-than-expected economic reports spurred cyclical shares, specifically the Transports, to strong gains for the week. As well, Retailers outperformed as February sales exceeded expectations at many stores. This is a very pleasant surprise considering the tough comps and rise in energy prices. An improving labor market, more optimism and relatively low interest rates should continue to boost consumer spending throughout 2005. Technology shares underperformed through week's end, pressured by declines in the semis, after several companies in the sector made disappointing comments. While semiconductors underperformed, the SOX is still technically healthy and appears poised for future gains. Biotechnology stocks were the worst performers of the week and appear headed for further underperformance over the intermediate-term. Measures of investor anxiety were mixed on the week, which is a positive considering the breakouts in most major indices. Finally, it was once again a psychological positive for the Bulls that the rise in crude oil, heating oil and gasoline prices didn't result in any discernable weakness in US stocks. As well, the fact that strong economic and earnings reports only pushed long-term interest rates marginally higher for the week was also a positive.
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