S&P 500 1,122.14 -.83%
Click here for the Weekly Wrap by Briefing.com
Bottom Line: Market action last week was mostly negative as healthcare and homebuilding stocks led the major indices lower. As well, commodity prices rose further, which will likely generate higher inflation readings in the future. Healthcare-related stocks will remain under pressure until the election is resolved and more information is available on the important COX-2 inhibitor class of drugs. In my opinion, the selling in the homebuilding stocks was overdone. These stocks have beaten the Bears brains in for so long that any signs of a slowdown are called a "collapse" or "bursting of the bubble." While I do think fundamentals for homebuilders are decelerating, sales will remain good by historic standards and low valuations in the group should prevent a major sell-off. On the positive side, volume on the major indices declined last week and measures of investor anxiety mostly rose. Finally, the S&P 500 broke above its downtrend line that had been in place since early March.
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