Saturday, August 06, 2005

Market Week in Review

S&P 500 1,226.42 -.63%*

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Click here for the Weekly Wrap by Briefing.com.

BOTTOM LINE: Overall, last week's market performance was modestly negative as profit-taking set in after recent gains. The advance/decline line fell, most sectors declined and volume was about average on the week. Measures of investor anxiety were mostly higher. The AAII % Bulls fell sharply for the week and is now back near average levels. Mortgage rates increased again, but are still only 61 basis points away from all-time lows set in June 2003. The benchmark 10-year T-note yield continued to rise on more positive economic reports and a pullback in the US dollar. Dollar weakness, as a result of some better economic data from Europe and Japan, and rising interest rates also led to substantial underperformance by US small-cap stocks. However, technology shares outperformed on more optimism over increased spending on equipment by corporations. Moreover, Microsoft rose 8.5% for the week, boosting the major tech averages. Finally, crude oil gained again as worries over Iran intensified and a strong US economy further heightened fears of a fourth quarter supply shortfall.

*5-day % Change

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