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The market started the new week in a quiet fashion. All three major indices ended the day within 0.2% from the unchanged level, which was not bad at all considering the huge rally in the previous week. There is little economic news. Similar to Citigroup and Wachovia, the latest earnings results from Bank of America also missed expectation. But apparently the market has already discounted the news.
Financials were among the noticeable losers for the day but volume was on the light side. Commodities especially energies continued to do well despite a pull back in the CRB commodity index. It is worth noting that the crude oil price has managed to keep hitting new historical levels. If this pattern doesn’t change, inflation will replace the credit crisis to become the top concern for the Fed pretty soon. Treasuries were mixed and the yield curve became flattened a little bit. The US dollar closed lower against most major currencies. After the bell, TI provided a disappointing guidance for the next quarter and it should remind investors that the economy is not out of the woods yet.
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