Weekly US Markets Update and OutlookU.S. stock market looks for relief from inflation
MarketWatch: Stocks could use a holiday during the coming Memorial Day-shortened week from the escalating energy prices and inflationary data that have dogged the equities market, fueling persistent worries about the ailing U.S. economy."Oil stands a good chance to rationalize its price; it should come down, and we will receive no readings on inflation in the economic-data calendar -- the two things that haunted the market last week," said Art Hogan, chief market strategist. On Friday, stocks sealed weekly losses after a report showing the number of unsold U.S. homes piled up to a 23-year high in April. The Dow shed 145 points, or 1.2%, to 12,479 on Friday. General Motors Corp. led blue-chip losses, falling 4.5% after the automaker said it anticipates taking a $1.8 billion hit in the second quarter and further cutting production. Shares of rival Ford Motor Co. gave up 4.1% after it backed off its often-stated goal of returning to profitability in 2009. Dragged down by the consumer-discretionary and energy sectors, the S&P 500 Index fell 18 points, or 1.3%, to 1,375. The technology-laden Nasdaq Composite Index declined 19 points, or 1%, to 2,444. For the week, the Dow industrials lost 3.9%, the S&P 500 3.5% and the Nasdaq 3.3%.
Crude futures ended last week with a gain of almost 5% after a four-session winning streak, ending at $132.19 a barrel on Friday after briefly touching a record high of $135.09 in electronic trading Thursday. Next week's economic docket will have the government reporting on durable-goods orders in April on Wednesday, with the number expected to slide 1.5%, along with a like drop in shipments. The following day brings a preliminary reading on first-quarter GDP, with is likely to climb 1% from an early reading of 0.6%. Other economic data on Thursday include initial jobless claims for the week just ended, with analysts forecasting a climb of 5,000 to 370,000. On Friday, the government is expected to report a 0.2% rise in personal income for April, while a separate report will offer a reading of manufacturing activity in the Chicago region. On the earnings front, PC giant Dell Inc. reports its fiscal first-quarter earnings after Thursday's market close, with analysts looking for good, albeit not great results.
Weekly KLSE Index Update and Outlook
I Capital on daily KLSE Composite Index. Its attempt on testing the psychological level at 1,305 was short-lived mainly due to inflation concerns over the gravity-defying performance of crude oil price accompanied by a sharp rise in prices of food commodities.Moreover, the possibility of local political defections is still a major concern surrounding the KLCI. Will there be any positive leads for a breakout of the ascending triangle of the KLCI or will it undergo a correction again?
* Jeanne Abdullah was conferred the highest honorary award by the renowned Soka Women's College of Soka University in Tokyo for her significant contribution to and support of the development of women in Malaysia. Please refer here for her outstanding contributions to Malaysian women.
* Fair to all finally? Federal Government has decided to standardise the prices of subsidised goods in Sabah and Sarawak with that being charged in Peninsular Malaysia. Why only now?
* Good news! No hike in petrol price in Malaysia at least until September despite spiralling global crude oil prices. Unfortunately in Indonesia, fuel price was raised by 30% yesterday as the Government could not afford the subsidies that are exploding along with world oil prices. The increase was met by angry students clashes with police.
No comments:
Post a Comment