Oil prices rocketed higher this week along with Wall Street and led by energy shares. GM resolves issues ahead of bankruptcy deadlines.
I’m Nichole Dossous with the “Weekly Market Wrap” on May 29, 2009.
The S&P 500 CLIMBED 3.6 percent this week to close at 919.15.
The Dow Jones Industrial Average was also UP this week by 2.7 percent, closing at 8500.33.
The NASDAQ ended the week HIGHER by 4.9 percent to 1774.33.
Crude-oil futures hit a six month high rising above $66 a barrel this morning, and up 13 percent for the week. Economists are concerned that economic recovery might be short circuited by higher energy prices. Higher prices for oil are believed to be caused by a weakening U.S. dollar, OPEC keeping current production quotas, and surprising declines in U.S. inventories.
GOLD prices hit a three-month high today. A falling U.S. dollar combined with a firming of gold purchases in India during the wedding season are believed to be responsible for the move up. Prices settled above $975 an ounce.
The U.S. economy dropped sharply again in the first quarter to a revised minus 5.7 percent annual rate after dropping 6.3% in the fourth quarter according to the Commerce Department.
Investment in housing dropped at the speediest rate in 29 years as did domestic demand. Exports set a 38 year record rate of decline. Business investment decreased at a record quarterly rate as well.
The negative 5.7 percent annualized estimate for GDP was slightly stronger than the initial estimate of a 6.1 percent a month ago. Consensus estimates forecasted a 5.5 percent decline for the quarter.
General Motors (NYSE:GM) reportedly reached a new debt-swap deal with bondholders and a cost-cutting deal with the United Auto Workers today. Traders see this leading to a speedier bankruptcy process for GM.
Several companies reported quarterly earnings this week, led by strong earnings by Canadian banks.
The Bank of Montreal (NYSE:BMO) posted 93 Canadian cents a share for the quarter, beating consensus estimates of 86 cents a share.
Bank of Nova Scotia (NYSE:BNS) reported earnings of 81 Canadian cents a share, beating estimates by 2 cents.
The Royal Bank of Canada (NYSE:RY) surprised investors today with quarterly earnings of 97 Canadian cents a share, ahead of analyst’s estimate of 91 Canadian cents.
Toronto Dominion Bank (NYSE:TD) reported earnings of $1.23 Canadian, beating estimates by 8 cents.
HJ Heinz (HNZ) earnings met analyst estimates of 55 cents per share, though they were down from 61 cents a year ago.
Frontline (NYSE:FRO) announced they are maintaining their dividend at 25 cents a share on the strength of quarterly earnings of 97 cents a share, beating estimates of 70 cents.
This is the “Weekly Market Wrap” for May 29 and I’m Nichole Dossous. Please join us on Monday with the “Weekly Market Ahead” report and have a great weekend.
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