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MarketWatch's top stories of the week
By MarketWatch
Last Update: 5:37 PM ET May 22, 2009
Americans are heading off into a long weekend to mark the unofficial start of summer. Investors were grumpy this week, sending indexes every which way. On Monday the Dow Jones Industrial Average shot higher, as investors cheered events ranging from an election result in India to earnings reports and economic data in the United States.
But it was all downhill from there as the Dow fell each of the next four days, even though it managed, along with the other two major indexes, a small gain on the week.
So are investors heeding the long-time adage to sell in May and go away? The market's history suggests that Memorial Day weekend marks the start of the summer doldrums in stocks. But this year may be different, writes Nick Godt, MarketWatch's markets editor, in an article that suggests investors may want to buy in May, and stay. See full story.
Oh, and while the main focus for most of us will be barbecue, beaches and ball games, it's certainly worth taking at least a moment to note why we have a three-day weekend. Think about it, mention it to your friends or explain it to your children, no matter what you feel about the conflicts in which the United States is currently embroiled.
The Dow Jones Industrial Average fell 14.81 points, or 0.2%, on Friday to close at 8,277.32. For the week, the index eked out a 0.1% gain. The Nasdaq Composite Index .COMP eased 3.24 points, or 0.2%, to close at 1,692.01 on Friday while notching a 0.7% gain for the week. The broader Standard & Poor's 500 Index .SPX dropped 1.33 points, or 0.2%, to close at 887 on Friday. For the week, the index is up 0.5%.
Stay tuned to MarketWatch throughout the weekend. We'll have plenty of news to help you manage your life and your portfolio. Our weekend features include a look at some of the quirky, historic sites around the United States that may be worth a visit this summer and a look at the upcoming launch of Palm's Pre smart phone.
Also, please take a few minutes to get ready for the week ahead by watching our videos looking at next week in Asia, Europe and the United States.
U.S. Week Ahead: Housing Data Deluge
Europe's Week Ahead: Retail, Airlines Results
Asia's Week Ahead: Data, Dragon Boats Coming
-- Christopher Noble, assistant managing editor
Payback poker
Timothy Geithner slapped down the first card this week in what promises to be a high-stakes poker match over TARP repayment between Wall Street and the U.S. government. The question is whether the Treasury secretary -- staked with our taxpayer money -- is up to the challenge of bluffing the professional bluffers. Read David Callaway's column about TARP paybacks.
Big bank failure
BankUnited Financial BKUNA, the largest lender based in Florida, was shut down by banking regulators and sold to a group of private-equity firms, the Federal Deposit Insurance Corp. said this week. BankUnited reopened Friday under a management team led by John Kanas, the former chief executive of North Fork Bank. The seizure is the 34th bank failure so far this year -- and the biggest. Read more about BankUnited.
Bankruptcy near for GM?
The Obama administration is preparing to send General Motors Corp. GM into bankruptcy as early as the end of next week under a plan that would give the automaker tens of billions of dollars more in public financing, the Washington Post reported Friday, citing sources familiar with the discussions. A bankruptcy filing would come in spite of a breakthrough deal between GM, the United Auto Workers union and the U.S. Treasury that would pave the way for lower labor and health-care costs at the struggling automaker. Read about GM's plans.
Fiat tries to retake America
Fiat SpA FIAT.Y, if it is to succeed in the U.S., needs to shake its reputation as a funny little maker of bijou-sized cars to drive on Roman holidays. But Sergio Marchionne, the charismatic boss of Fiat and future chief executive of Chrysler, is no stranger to extreme makeovers. When he arrived at Fiat, he found demoralized troops and disempowered managers. Within a year, Fiat was back in the black. Within three, it had shed its reputation as a maker of uninspiring, shoddy cars to become Italy's biggest restructuring success story. Read more about Fiat's future.
Five great driving getaways
Money's tight, gas is down from its record highs last year, and the pull of the open road is one few Americans are able to resist. Plus, with the job market as unstable as it is, more people may feel better asking for a few days off for a weekend getaway rather than a week or more for a longer journey. It all adds up: time for a road trip. But if you live in a major metropolitan area, is it possible to get that true vacation feeling on a short weekend getaway? Yes, you can. Get the details on five great getaways.
Home Depot profit climbs
At Home Depot Inc. HD, first-quarter profit rose a better-than-expected 44% as store-closing costs declined. Consumers growing their own gardens and taking on small repair and remodel jobs also helped limit a sales decline. The world's largest home-improvement retailer didn't raise its profit forecast for the year. It cautioned while the worst of the housing market may have passed, there are still mixed signals. Read more about Home Depot's results.
Housing starts hit record lows
Optimism that the housing slump had hit bottom was dampened Tuesday, when the government reported that construction on new housing projects slowed to a record-low pace in April. New construction of single-family homes and apartments plunged 12.8% to a record-low annual rate, the weakest since the government began publishing the series in 1959. The drop was caused by a slump in construction of multifamily housing, which fell 46.1%. Read more about the latest housing data.
Salmon producer shares swim upstream
At the world's only regulated marketplace for fish and seafood derivatives in Bergen, Norway, the outlook for salmon prices is looking pretty good. No surprise, then, that Norway's Marine Harvest , the world's largest producer of farmed salmon, has seen its shares skyrocket 268% year-to-date. What's been driving prices higher is a disease that has killed millions of salmon in Chile, the world's second-largest producer next to Norway. Read more about the boom times for Norway's salmon industry.
A boost for vaccine makers
Shares of niche makers of vaccines and anti-viral drugs have been on fire since the H1N1 flu first made headlines last month, but are these fledgling companies really in a position to cash in on a possible pandemic? Certainly, the demand for better flu-fighting agents is real. Add to this an outbreak of the seasonal flu and the possible reappearance of the rarer, but far deadlier, avian-flu virus, and the situation could quickly take on the eerie undertones of a Michael Crichton novel. Not surprisingly, investors have been quick to react to this doomsday scenario, bidding up shares of vaccine and anti-viral makers into the ozone. Read more about how vaccine makers are responding to the flu threat.
India's rally lifts sentiment
Just as recent optimism over Chinese growth was beginning to face mounting skepticism, India might reappear as the second motor driving investor enthusiasm for the region and other emerging markets, analysts said. The Indian stock market surged more than 17% on Monday, following the Congress Party-led alliance's victory in the country's general elections. Some of that enthusiasm spilled over to other regional markets and globally. Still, some analysts remain cautious. Read more about India's rally.
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