TradeTheNews.com: Weekly Wrap-up

 

- Equity indices took a step down this week, closing out Friday at weekly lows as investors hunkered down and took profits. The economic data offered little in the way of green shoots. There was no good housing news: the National Association of Realtors said prices for existing homes declined in most cities in Q1, while RealtyTrac reported that April foreclosures were +32% y/y and +1% m/m. Continuing unemployment claims hit their highest level on record once again and initial claims were higher than expected. April retail sales declined a bit more (versus expectations for flat sales) and the March figure was revised downward slightly. Friday's preliminary University of Michigan Confidence reading for May offered a bit of optimism, coming in slightly higher than expected. Some commentators indicated that a second week full to the brim with debt and equity offerings could indicate a short-term top, although others pointed out that despite all the dilution, the offerings show a strong return to liquidity and normality in capital markets. For the week, the S&P 500 fell 5%, the DJIA dropped 3.5% and the Nasdaq Composite slipped 3.4%.