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The Markets The
markets continued to accelerate, even as economic growth—as
measured by gross domestic product—slowed to 1.3% for
first quarter. The Dow Jones Industrial Average closed at
its 18th record high for the year and, on Thursday, the Standard & Poor's
500 Index moved above 1,500 for the first time in nearly
seven years. What is propelling markets higher? To date,
reported earnings have been up 7% to 8%, according to Barron's
Online, which is nearly twice as high as analysts had expected.
Why are earnings so high? Large international companies that
trade on the U.S. stock markets are benefiting from the weaker
U.S. dollar. The dollar fell to an all-time low against the
Euro last Friday. When companies report profits earned in
European nations—profits earned in Euros—they
are translated into U.S. dollars and that gives the companies' bottom
lines a significant boost. The dollar has also been weak
against Latin American and Asian currencies so American companies
with operations in those parts of the world had an opportunity
for unanticipated increases in earnings, too.
The markets also were encouraged by news
of mergers and acquisitions. Microsoft was reportedly interested
in Yahoo! (which pushed
Yahoo! shares up by 9.9% last Friday, according to Barron's
Online). Investors like mergers and acquisitions because
they interpret such activity as a sign that the bidding company
is bullish about the health of the economy.
| Returns through 05/04/07 |
1-Week |
Y-T-D |
1-Year |
3-Year |
5-Year |
10-Year |
| Dow Jones Industrials |
1.1 |
6.4 |
14.6 |
8.7 |
6.2 |
6.3 |
| Nasdaq Composite |
0.6 |
6.5 |
9.8 |
9.7 |
10.3 |
6.7 |
| Standard & Poor's 500 |
0.8 |
6.2 |
13.8 |
10.4 |
7.4 |
6.4 |
Source: Yahoo! Finance, Barrons
Past performance is no guarantee of future results. Indices
are unmanaged and cannot be invested into directly. Three-,
5-, and 10-year returns are annualized. Assumes dividends
are not reinvested.
IF YOU'RE CONSIDERING MAKING HOME IMPROVEMENTS, be
sure you know which projects may pay off and which may not. Remodeling Magazine's
19th annual ‘Cost vs. Value Report' found that the price of remodeling
increased during 2006 while the value of improvements at resale fell to 2002
levels. How much will a home improvement add to the value of your home? It
varies by region—a new deck is worth more in some parts of the country
than in others. In general, the most valuable remodeling projects—for
both mid-range and upscale projects—were replacing siding and windows,
making minor kitchen changes, and overhauling bathrooms.
Some renovations may actually hurt the value of your home,
according to CNNMoney.com. These include swimming pools and Jacuzzis (in some
parts of the country), poorly
designed home additions, and trendy finishes. Of course, if you plan to stay
in your home for the foreseeable future, you may decide to make improvements
that will brighten your quality of life without regard for the effect of
the change on your home's resale value.
Once there was a night watchman who had
been caught several times sleeping on the job. The boss issued
the final warning. On the next night he was caught with his
head on his hand and his elbows on the desk.
"Aha, I've caught you again," exclaimed the boss.
The watchman's eyes popped open immediately and he knew what
had happened. Being a quick thinking man, he said one word
before looking up at the boss. The boss apologized profusely
and went home. What was the one word?
Click here for the answer.
Best Regards,
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