iBooyah.com: August 21 – 25: Market stuck in neutral
The week of August 21 – 25 was quite a boring week in terms of market activity. There were no real market catalysts. Next week should be interesting as slew of economic reports are scheduled to be release. On Tuesday, investors will be going through the FOMC minutes and attempt to gauge their next move. Friday should also be interesting as the August’s employment report is due. The Market is expecting 125K jobs. If the economy created at least 125K, the market will not move. However, if it created close to 125K, I believed there will be enough of a catalyst to move the market upward. The lower than expected employment number will pretty much guarantee the Feds will leave the federal funds rate alone at their next meeting.
Crude prices have stabilized at around $73/barrel as the cease fire between Israel and Lebanon alleviated investor’s concerns. However, demands for crude remains the same. Barring unforeseen events, I expect crude price to remain between $70-75/barrel for the remainder of this year. Realistically, I do not expect prices to drop further. Speaking of oil, Halliburton (HAL) remains a good buy in my opinion. Even if the Republican loses big in the next election, very few companies can do what HAL can. It is not as though another company can assume the government contracts that have been so good for HAL in the past 4 years. Looking for opportunities to buy HAL in the low $30s would be a wise investment in my view.
Good Luck and have a good weekend!
