每日市场点评 --- August 8, 2008

The market really had some fun recently: up 2% on one day then down 2% the next day then up 2% again the day after. For the second time this week, the Dow was up more than 300 points, reversing all losses from yesterday. As for the week, the Dow was up 400 points; The S&P advanced 2.8%, with the majority from today’s 2.4% gain and the Nasdaq fared the best with a rise of 4.5%. The biggest news in the financial world today is the strength in the US dollar, which gained the most against the euro in more than 8 years. In some other economic news, we had Q2 productivity reading, which came at 2.2%, slightly below 2.5% consensus. Separately, wholesale inventories for June increased 1.1% vs. 0.6% expected.

Basic materials and energies were among the only sectors that ended the session lower. Both are victims of stronger dollar and falling commodity prices recently. On the winners’ list, we had names like consumer cyclical and transportation – both are big beneficiaries of falling crude price. The CRB commodity index tumbled 3% and closed at the lowest level since April 1st. The US dollar as mentioned above enjoyed a huge rally against most major currencies, especially those commodity-rich countries. Treasuries dropped as money moved out from the previously safe heaven. The VIX index dropped 2% and closed at 20.58. The market breath was positive on both NYSE and Nasdaq with typical Friday-type volume.