Stock market was under pressure of sudden rally by the dollar. Both stocks and commodities were able to rebound when the dollar lost its strength. Last week brought weak reports on housing starts and existing home sales and regional manufacturing activity. Corporate news also made investors worry as a majority of companies bet earnings expectations but paired the results with dour outlooks. This week the market will look to home sales, GDP and earnings from 14 companies on the S&P 500 Index. It appears that investors have taken the old Wall Street saying “Sell in May, then go away” to heart, and the stock market’s slump is likely to persist.
Monday, May 23, 2011
Stocks’ slump likely to persist
Stock market was under pressure of sudden rally by the dollar. Both stocks and commodities were able to rebound when the dollar lost its strength. Last week brought weak reports on housing starts and existing home sales and regional manufacturing activity. Corporate news also made investors worry as a majority of companies bet earnings expectations but paired the results with dour outlooks. This week the market will look to home sales, GDP and earnings from 14 companies on the S&P 500 Index. It appears that investors have taken the old Wall Street saying “Sell in May, then go away” to heart, and the stock market’s slump is likely to persist.
