Weekly Market Outlook |
By Dave Mecklenburg |
Published
03/21/2010
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Stocks
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Unrated
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Weekly Market Outlook
The three major stock indexes all registered losses on Friday. The Dow fell 37 points, the S&P 500 lost nearly 6 points and the Nasdaq lost almost 17 points. These losses represent a fraction of one percent for each of the indexes. For the week, the indexes were up, with the Dow showing a gain of 1.1 percent, the S&P 500 registering a gain of 0.9 percent, and the Nasdaq posting a 0.3 percent gain.
On Sunday, the House of Representatives will vote on the bill which will, if passed, reform the nation’s healthcare system. Whether or not the bill passes, analysts feel that removing the uncertainty from the situation could help to settle the stock market.
Action on the healthcare bill will allow investor anxiety to focus elsewhere. The housing sector, weakened by the high number of foreclosures, is of concern because a healthy housing market is considered to be vital to economic recovery. Tuesday will bring the January home prices, expected to reveal that the perceived advance in home prices at the end of 2009 has not materialized. Also Tuesday, existing home sales figures for February are expected to have fallen from January numbers, and the new home sales report, which follows on Wednesday, will show that market to be flat.
Wednesday will bring the durable goods orders, which are expected to show a healthy growth rate of 0.6 percent for February, though far below January’s growth of 2.6 percent. On Friday, the final figure for fourth-quarter gross domestic product will be released. It is expected to verify the 5.9 percent gain originally released. Friday will also bring the final consumer sentiment figure for March, projected to be 73.6, compared to its preliminary figure of 73.
The markets will again be contending with uncertainty over Greece’s fiscal situation. Greece has already announced that it cannot reduce its deficit with interest rates at their current figure. Euro-zone assistance remains uncertain, and Greece may request aid from the International Monetary Fund.
Eight Stocks to Watch
We're watching five stocks for continued gains on market and sector strength and confirmation. The five stocks we're watching:
ACE Limited (ACE) Rockwell Collins, Inc. (COL) Camden Property Trust (CPT) Kellogg Company (K) Steris Corporation (STE)
Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.
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