Correction Ends On Optimism

A wave of optimism lifted the market out of correction territory this week,fueled by bullish reports from Australia and Canada,as well as progress reported by retailers JC Penney,Macy's and others.Employment surged in Australia and Canada,while hot weather in the U.S. sent people into shopping malls,where they couldn't resist the bargains.This created hope that earnings season,which begins next week with Alcoa's report,would show stronger growth than had been feared.For the week,the Dow was up 5.3%,while the NASDAQ gained 5% and the S&P logged a 5.4% increase.
Golf fans are looking ahead to the British Open at St.Andrews' Old Course in Scotland,which begins next week.It is the third of the year's four Majors.St.Andrews is considered the home of modern golf and is a great favorite with the players.In baseball,the young Stephen Strasburg was pitching masterfully for the Washington Nationals tonight as they dominated San Francisco 8-1.He is showing he is no flash in the pan,justifying the high level of fan interest being generated by his talent.There's a real presence about him.Miami Heat basketball fans held a pep rally for the newly signed LeBron James and friends,broadcast live on ESPN.
The S&P futures were ascending 5.50 this evening,and bond futures rose as well.
JC Penney(JCP),Macy's(M)

Stocks Break Through Level

The S&P 500 broke through a key technical level on Friday,down 12.8% from its April high.Such a move indicates a prospect for further substantive declines.There's nothing technical holding stocks back from falling into bear territory now.It was the market's second biggest drop of the year,leaving it at its lowest point since February,spooked by Hungary's warning that it could well default on its debt and a lackluster employment report.Indeed,the report calls into question the economy's ability to stay out of a double dip recession,with private sector job growth coming in at a mere 41,000,far less than estimated and less than in previous months.Companies were simply just not hiring to any extent;instead,they increased hours worked by existing employees to cover any new orders.This will neither help the 15,000,000 jobless nor spur consumer spending,seen as critical to recovery.
The S&P futures were down 37.50 on Friday evening,and bond futures climbed.For the week,the S&P fell 2.3,while the Dow lost 2.0 and the NASDAQ slipped 1.7.
The baseball world will be watching Washington Nationals pitcher Stephen Strasburg make his major league debut on Tuesday in the nation's capital.With a huge reputation for excellence preceding his arrival,anything less than a shutout will be a letdown for the jazzed D.C. sellout crowd.Seldom if ever has so much been expected of a rookie.Few cautionary voices are to be heard above the happy talk,voices who remember that the lower echelons of pro baseball are just not the same as the major leagues.There is a quantum leap that a rookie has to make,whether his name is Strasburg or not.