Wall Street could increase these gains this week
- on 09.05.10
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After a sharp rebound this weekend, the U.S. equity markets could continue their success as long as the economic outlook continues to improve.
Friday's announcement of job cuts less than expected in August in the U.S., released after a few macroeconomic indicators better than expected the previous day, was enough to close markets for one week started with great fanfare in doubt.
Investors, who had not ruled out a relapse into recession in the U.S. economy, have apparently abandoned it, at least for the moment, this scenario.
The three major stock indices of U.S. markets have each won more than one percent Friday.For the week, the Standard & Poor's 500, who serves as a reference for fund managers, posted a gain of 3.8%, its best weekly performance for eight weeks.
In August, the S & P 500 was down 4.7% as investors fearing a recession in the fallout of the first world power.
For the week, the Dow Jones gained 2.9% and the Nasdaq Composite 3.7%.It is for these two indices of their best week in the last six.
This week will not begin until Tuesday – the markets will be closed Monday for Labor Day – the macro-economic indicators likely to fuel the optimism of investors will be found few.
There will still be the weekly statistical applications for unemployment benefits – investors expect a mild recession – and the external trade statistics for the month of July. The deficit is expected to show a small decrease.
Some analysts said however that despite its rebound, the market is struggling to emerge from its band, between 1040 and 1130 points, the S & P 500.
"We are in bullish phase.But I do not see us reach new highs or break the target range, "said Alan Lancz, president of Alan B. Lancz & Associates in Ohio." We're staying in a market that is two steps forward a step back. "
Markets have perhaps begun in September, but investors should not forget that this month is generally the weakest of the year for stocks, according to the Almanac of the trader.
The S & P 500 declined on average by 0.7% in September since 1950. However, the day after Labor Day, the Dow rose 12 times over the past 15 years.