Fay came through yesterday - lots of rain - not much wind.  I think this one was way overhyped.  Everything was closed around here - well except for your intrepid Bayside Bombers - we were here, business as usual.  Neither rain nor snow will stop your Bombers from their appointed - oh never mind.

This past week was busy with economic readings and corporate earnings reports filled with so many mixed messages that investors were left scratching their heads more often than not. Ultimately, they showed faith in our slowly growing economy - despite the fact that other major overseas indexes were down - and the markets closed on a high note. Financials were the worst performing sector, down 2.8 percent because of low business activity and the credit crunch in the market. However, a dramatic drop in energy prices for the last couple of weeks and a strengthened dollar improved even the naysayers’ outlooks. Watching gas prices prices at the pump fall below $3.60 per gallon in some areas had an undeniably soothing effect. And a continued drop in oil prices may be just the balm the market needs to start healing.

The Consumer Price Index or Inflation for July jumped to 5.6 percent, up from 5 percent, while the Core CPI, which excludes food and energy prices, increased to 2.5 percent. Hence, the cost of energy was again the driving factor for the higher CPI. But investors didn’t seem disturbed by the reports as they were betting that lower energy prices and a stronger dollar would bring the CPI down next month, and the Fed will keep holding key interest rates steady. The stock market ended up on a high note after a rollercoaster ride the whole week. The Standard & Poor’s 500 index ended the week up 0.15 percent, and the NASDAQ composite index rose 1.59 percent. Increased industrial production and a lower price-adjusted trade deficit for June turned out to be positive indicators in a week which was again offset by disappointing retail sales and weekly initial claims. The trade deficit improved to $39.1 billion from $43.1 billion in May; however, overall retail sales were down by .1 percent. If auto sales were included in that figure, retail sales would be up by .4 percent.

The Freddie Mac auction yesterday sure portends higher interest rates are coming.  In any case, give us a call 24/7 and we will be able to give you our unmatched Rich Corinthian leather service.  Can’t hurt.