Saturday, July 16, 2005

Market Week in Review

S&P 500 1,227.92 +1.32%*

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Click here for the Weekly Wrap by Briefing.com.

BOTTOM LINE: Overall, last week's market performance was positive as the S&P 500 closed at a four-year high on Friday. The advance/decline line rose, almost every sector gained and volume was average on the week. Measures of investor anxiety were mixed. However, the AAII % Bulls rose substantially for the week and is now at above-average levels. Mortgage rates rose, but are still only 45 basis points away from all-time lows set in June 2003. The benchmark 10-year T-note yield continued to rise as economic reports again painted a healthy picture of the state of the US economy. As well, investors are likely shifting some assets from bonds to stocks. Small-caps, which have outperformed substantially this year, underperformed this week as the US Dollar also took a breather from its recent advance. Technology stocks outperformed, led by semiconductors, on further signs of increasing demand. Oil fell on the week as a report from the IEA showed China's demand growth for the commodity turned negative during the second quarter and hurricane Emily lost steam.


*5-day % Change

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