Independent, Fee-Only Financial Advisor

Independent, Fee-Only Financial Advisor

Friday, May 30, 2008

Memories of May

The month of May ended with the Dow taking a slight dip. This index lost 1.4% for the full month. On the other hand, NASDAQ gained 1/2% today, yielding a monthly gain of 4.6%. Dell's good earnings report helped. Overall, May was a month of ups and downs, mainly following the trek of oil. This middle month of the quarter was fairly quiet and May be the turning point for the economy. GDP was revised UP this week. Could the downturn be just a memory? DJIA -7.90 NASDAQ +14.34 S&P 500 +2.12

Tuesday, May 20, 2008

A Pullback

Oil jumped over $129 per barrel. There was caution about more bad news from the financial sector. A Fed member said no more on future rate cuts. The combination sent all indexes tumbling. Large-caps took it on the chin more than NASDAQ, though. After close, HP released earnings, and the news was all good. Could we see a see-saw tomorrow? DJIA -199.48 NASDAQ -23.83 S&P 500 -13.23

Monday, May 19, 2008

Mixed Monday

The Dow added triple digits to start the day then settled into a modest gain for the day. The culprit? Oil! The price per barrel finished at a little over $127 per barrel. NASDAQ actually dropped about 1/2% with the news that former AOL executives are under fire for misrepresenting ad revenue. Ah, the webs we weave. DJIA +41.36 NASDAQ -12.76 S&P 500 +1.28

Friday, May 16, 2008

A Strange Day

The Saudis told the Prez to take a hike. They won't loosen their grip on oil. The price per barrel shot up to $127. Secretary Paulson is in positive speak mode, just like Bernanke. Paulson sees the light at the end of the tunnel for the housing crisis. Housing starts were released today, and the news was good. Of course, most of the upswing came in the multi-family area. Senator Dodd is also singing good news. Congress is near new legislation that will assist homeowners. This strange combination resulted in a slight uptick for the S&P but slight losses elsewhere. DJIA -5.86 NASDAQ -4.88 S&P 500 +1.78

Thursday, May 15, 2008

Bernanke Bump

Mr. Bernanke testifed today and assured investors that the crisis in the banking industry is easing. The Senate is close to passing a relief package for stressed homeowners. And GE is selling off its appliance business. All this and oil dipped slightly. The combination resulted in a rally on Wall Street. NASDAQ was the big winner, adding on about 1 1/2%. DJIA +94.28 NASDAQ +37.03 S&P 500 +14.91

Wednesday, May 14, 2008

Quiet Rainy Day

It's a quiet Wednesday in Mississippi, with intermittent bouts of rain... the kind of day that leaves you wanting a nap. Markets were a bit more energized. Data came out on consumer prices, and the news was good. Inflation is not running away with things. AIG's board is standing by its man, Sullivan, despite an outcry from shareholders. Merck got a nice boost. The Vioxx verdict was overturned, which should remove their dark cloud for now. Large-caps added about 1/2% today. DJIA +66.20 NASDAQ +1.58 S&P 500 +5.62

Tuesday, May 13, 2008

ND Adding On

While the Dow and the S&P 500 backed up slightly, NASDAQ added about 1/4%. Carl Icahn is grabbing up shares of Yahoo. The big time investor is sniffing around for a deal. Bernanke is still cautious about the credit markets and assures investors that the Fed will continue to add liquidity. Retail sales data was good, another sign that the consumer is rejoining the game. Globally, China is still in the throes of a full-scale rescue operation, and the UN is still trying to help Myanmar. DJIA -44.13 NASDAQ +6.63 S&P 500 -0.54

Monday, May 12, 2008

Tragic Events

China has lost thousands as it is hit by a strong earthquake. In North Mississippi, citizens felt rumblings underfoot. Myanmar is mired in political turmoil after their major cyclone. Globally, humanity is suffering, and we are hampered in our efforts to help. Wall Street did not take note of this toll, only the price of oil, as it fell below $125 per barrel. AIG is on the ropes, but even this didn't affect investors. NASDAQ gained nearly 2%. All indexes were in the green. Several mergers are in the works. DJIA +130.43 NASDAQ +42.97 S&P 500 +15.30

Friday, May 09, 2008

AIG's troubles

The Dow Jones 30 gave up 1% today because of the problems with AIG. They are still dealing with losses from the credit market meltdown. The broader markets fared much better. NASDAQ dropped only slightly, and the S&P's decline was about 1/2%. Of course, oil posted another high. What's new? Citigroup is laying off employees to shore up their stock price. The good news is that most stocks held steady, despite the bad news from the insurance giant. DJIA -120.90 NASDAQ -5.72 S&P 500 -9.39

Thursday, May 08, 2008

Adding On

Stocks gained across the board today-- nothing dramatic, but a gain nonetheless. The retail sales report was a bright spot. The fact that consumers are joining the game again is definitely a positive. Toyota is set to post its first annual loss in 7 years. I guess that means we may be buying shoes, but we're not buying cars. Economists believe the runup in oil and food is related to demand, not speculaton. Globalization is the word for the day. DJIA +52.43 NASDAQ +12.75 S&P 500 +5.11

Wednesday, May 07, 2008


Oil headed over $123 per barrel. The productivity report was good though, gaining 2.2%. Oil won, though, and markets pulled back about 1 1/2%. Congress and the White House are still arguing over a housing deal. Microsoft is looking to up their share of Facebook. A typical mid-week slump. DJIA -206.48 NASDAQ -44.82 S&P 500 -25.69

Tuesday, May 06, 2008


Oil is still going strong, bumping over $122 a barrel. Despite this, markets posted positive numbers. Cisco reported a 5% decline in earnings, but it was accompanied by a 10% increase in sales. Disney's earnings beat estimates. Sprint, Nextel, and Clearwire are working on a deal to deliver super high-speed internet to wireless devices. What recession? DJIA +51.29 NASDAQ +19.19 S&P 500 +10.77

Monday, May 05, 2008

Oil Back Through the Roof

We had a reprieve on oil prices last week, but it was short lived. The price per barrel opened higher and kept on going, finishing at over $120 per barrel. The result was a decline on all indexes. Yahoo's shares took a hit, with Microsoft rescinding their offer. Ya-hoo anyone??? The week is starting off in the red. DJIA -88.66 NASDAQ -12.87 S&P 500 -6.41

Thursday, May 01, 2008

Day After Bounce

A day after the Fed meeting and the announcement of a lower rate, markets bounced. Why now? Oil prices dropped significantly today, giving much needed relief. So, despite dour news from Home Depot-- they are closing stores. Despite GM's troubles-- they're still not making the sales. Markets posted big gains. The Dow added about 1.5%. NASDAQ gained nearly 3%. Another bit of economic news that helped the rally was the report on consumer spending. We're keeping it up! Did you have any doubt? DJIA +189.87 NASDAQ +67.91 S&P 500 +23.75