Market Corrects Some More;Braves Over Brewers

The stock market continued to correct excessive enthusiasm as the S&P 500 Index fell 1.99% on the week.On the year,the S&P has gained 8.96%.Major concerns included a slight slowdown in China;a drop in consumer sentiment at home;and an uptick in worry over Spanish financial news.
Major League Baseball is well underway now.On Friday night,there were some high scoring contests,such as the Atlanta Braves beating the Milwaukee Brewers at Turner Field in Atlanta by a 10-8 margin.The Braves were led by catcher Brian McCann and his two home runs.In another big score game,Boston downed Tampa Bay 12-10 at the Fenway Park opener in Boston.
Next week will see a lot of economic data and major earnings reports crossing traders' desks.Among important considerations will be the Empire State and Philly Fed manufacturing reports;Leading Economic Indicators;existing home sales and retail sales;and earnings from Citigroup;General Electric;IBM;and McDonalds.
Citigroup(C),General Electric(GE),International Business Machines(IBM),McDonalds(MCD)

Mixed Data,Thin Volume

The stock market edged up on Friday in thin trading,hindered by contradictory economic reports.While retail sales fell unexpectedly,consumer sentiment rose.Consumers may optimistic,but apparently not enough to break open their wallets.The positive University of Michigan sentiment reading of 75.5 was below those of previous economic recoveries.
Early season campers in Arkansas were victims of tragic flash floods at riverside campgrounds.At least 20 were swept away to their deaths,including children,and many more are still missing.Rescuers were doing all they could,but didn't even know exactly how many they were looking for,since campground registers were lost to the floods.One child was saved when snagged by a friendly tree limb.
In baseball,Boston was clobbering Philadelphia 12-1 as the National League champion Phillies continue to struggle,having tumbled out of first place.The S&P futures were up 5.50,and bond futures retreated.

Shopping Season More Critical

This year,the holiday shopping season is even more critical than it usually is.The Reuters/University of Michigan's consumer sentiment index for October was released today.It showed a decline from 70.6 in September to 66.0.This does not bode well for consumer spending.Although earnings have been generally good to this point,a lot,but by no means all, of the success is down to cost-cutting.Companies have shown a remarkable capacity for increasing efficiency.At some point,however,the consumer is going to have to step up more than they have done so far.If not now,the biggest shopping period of the year,when?If they do not step up now,we are looking at the significant possibility of a stagflation scenario.That would overshadow the good spirits that have characterized the equity markets of late.One can only hope the pocketbooks will open in time to avert all manner of difficulty.