Saturday, April 01, 2006

The week in review

  • DJIA dropped 170.65 or 1.51% to close at 11,109.32
  • S&P 500 lost 8.12, or .62% to close at 1294.83
  • Oil gained another $2.37 this week to 66.63. Ouch.
Strongest first quarter in years. For the first quarter of 2006, the S&P 500 rose 3.7%, its biggest first quarter gain since 1999. The Dow 30, also up 3.7%, showed its best first quarter since 2002 and the Nasdaq Composite shot up 6.1%, its best first period since 2000.

The biggest non-event of the week: The Federal Reserve began the Bernanke era with a quarter-point rate hike, the fifteenth straight for the Fed, putting the target rate at 4.75%. The guvs surprised no one with this and indicated at least one more increase to come in May. Given the Fed's penchant for overshooting neutral, a year from now inflation concerns will be replaced by worries of a stagnant economy and Fed watchers will be looking for a reversal.

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