WizzWatch Weekly Newsletter 07.21.08 – 07.25.08

To end this past week there was a turnaround in the major market indices. All three major indices ended the week on the upside after going through eight weeks of downside price pressure due to higher oil prices, recession as well as credit concerns. The moves to the upside took place in many beaten down sectors do to a $16 pullback in the price of oil. The financials as well as transports lead markets higher while energy and metals headed lower.

To end the week the Dow Jones Industrial Average moved higher. Earlier in the week the Dow hit a low of 10,827.71, which had been made in July of 2006. The Dow ended the week trading at 11,496.57 up 396.03 or 3.57 percent on 5.6 billion trading volume.

As for the Nasdaq Composite Index there was also a pullback earlier in the week, but the Nasdaq ended the week trading slightly higher. The Nasdaq hit a low in price earlier in the week at 2,167.29 but ended the week higher closing at 2,282.78 up 43.70 or 1.95 percent.

The S&P 500 also tumbled to lows that were made back in July of 2006 after 8 weeks of downside pressure but ended the week higher. The index was due to move higher based on speculation that U.S. banks have put their credit woes behind them. The S&P 500 ended the week trading at 1,260.68 up 21.19 or 1.71 percent.

On the oil front there was a huge pullback that took place after last week’s close at $145.66. Part of the pullback was due to the Bush administration’s decision to take part in nuclear talks with Iranian officials to ease concerns of a conflict. Crude for August delivery dropped 41 cents, or 0.29 percent, to $128.88 a barrel on the New York Mercantile Exchange at 2:45pm, the lowest close since June 5, 2008. Oil ended this week trading at $129.47 per barrel down $16.19 or 11.11 percent.

Gold also ended the week lower after moving to the upside for the past 4 weeks in a row. The downside move was due to the fact that investors have been buying equities. Gold futures for August delivery fell to $12.70. Gold ended the week trading at $958 per troy ounce down $2.60 or 0.27 percent.


By: Marlin Rolle
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