Stock Market Newsletter, April 7, 2008

The Week Ahead: The 80,000 jobs lost in March makes the third straight declining jobs report fueling speculation that another interest rate cut is coming. The FOMC Minutes released on Tuesday could shed more light on this topic. The wholesale inventories numbers come out Wednesday while chain store sales figures are released Thursday. March import prices are due Friday, the same day the World Bank and G7 spring meeting takes place.

Stocks to Watch: Shares of ITT Educational Services (ESI) are up on pending legislation that allows the Department of Education to buy student loans from lenders in need of new capital. This news lifted the whole group. Riverbed Technology (RVBD) cut 1st quarter guidance after failing to close on several deals as the stock continues a long slide from its top last October. The stock of Allegheny Technology (ATI) blasted higher on takeover speculation that US Steel (X ) is interested in buying them.

Special Note: News that Lehman Brothers and UBS Securities plan to raise $19 billion in capital eased concerns about Wall Street liquidity, but Friday was the lowest overall trading volume day of the year for markets. This could mean that the recent rally in stocks may need a pause as a lateral trading range has developed since January and could retest the lows. Combine this with the kick-off of earnings season this week and another period of high volatility may rock markets.


Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.


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