Weekly Stock Market Newsletter, 29 September 2008
The Week Ahead: As Congress began coming to terms this past weekend with the $700 billion dollar bailout of the financial system, Washington Mutual became the largest bank failure in U.S. history before J.P. Morgan stepped in to buy their deposits. A vote on the bailout package will commence this week in both houses. Normal reports to watch are personal income and spending on Monday, the Case Shiller Home Price Index on Tuesday, ISM Manufacturing and construction spending on Wednesday, factory orders on Thursday, and the September employment report on Friday.
Stocks to Watch: Research in Motion (RIMM) missed its Q2 earnings by 1 penny while gross margins slipped. This was enough to crush the price by over 27% as investors began to feel the gravity of a company whose book value is less than $8. Mentor Corp. (MNT), The breast implant company, received a downgrade from buy to hold by Jeffries & Co. Perfumania Holdings (PERF) sees Q3 same store sales falling 2.5% from a previously expected rise of 5% causing a 50% drop in the stock. Finally, Flowserve Corp. (FLS) will replace the bankrupt Washington Mutual on the S&P 500.
Special Note: The passing by Congress of Treasury Secretary Henry Paulson's bailout plan this week albeit phased in over 3 stages may help to calm markets this week, but still raises questions as to its longer term viability. With a large number of bank failures still expected to come after the the bill's passing, it's possible the worst may not be behind the markets. Also, questions arise as to how this plan will help stabilize the economy with so many consumers mired in debt and confidence falling.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
Stocks to Watch: Research in Motion (RIMM) missed its Q2 earnings by 1 penny while gross margins slipped. This was enough to crush the price by over 27% as investors began to feel the gravity of a company whose book value is less than $8. Mentor Corp. (MNT), The breast implant company, received a downgrade from buy to hold by Jeffries & Co. Perfumania Holdings (PERF) sees Q3 same store sales falling 2.5% from a previously expected rise of 5% causing a 50% drop in the stock. Finally, Flowserve Corp. (FLS) will replace the bankrupt Washington Mutual on the S&P 500.
Special Note: The passing by Congress of Treasury Secretary Henry Paulson's bailout plan this week albeit phased in over 3 stages may help to calm markets this week, but still raises questions as to its longer term viability. With a large number of bank failures still expected to come after the the bill's passing, it's possible the worst may not be behind the markets. Also, questions arise as to how this plan will help stabilize the economy with so many consumers mired in debt and confidence falling.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
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