By Sean Corey
Contributing Writer
Markets have been up this week based on a series of positive economic numbers. Both the long and energy fund rebounded from last week’s losses. Chinese exports and imports rose around seven percent, easing fears of a Chinese economic slowdown. Congress also passed a debt resolution earlier this week, erasing fears of another government shutdown that could undermine investor confidence in U.S. markets.
The result of the United States January employment report, released last Friday, was mixed. The country added just 113,000 jobs in January, 80,000 less than expected. However there was a better-than-expected number of jobs created in manufacturing and construction, collectively adding 76,000 jobs. Gains in these sectors tend to signal that the economy is healthy and firms are confident about the economy’s direction.
Additionally, a new Federal Reserve chairman, Janet Yellen, was officially sworn in last week. The Federal Reserve controls the money supply and sets interest rates in the United States, and it’s arguably the most essential institution in the financial market.
Federal data on housing starts, building permits, and home sales come out next week. These numbers will provide more information on the health of America’s construction and manufacturing industries.
This Week in SIMM
Long Fund: $274,400
Energy Fund: $284,300
GAINERS
Goodyear (GT) 6.20%
Boeing (BA) 5.53%
Qualcomm (QCOM) 4.99%
Capital One (COF) 4.96%
LOSERS
Chesapeake (CHK) -1.18%
Teva Pharm. (TEVA) -0.72%
American Cap. (AGNC) -0.27%
iSHares (SHY) -0.06%
Trading Activity
DON’T BUY
Herbalife (HLF),
Herbalife sells weight management, health snacks and energy nutritional products. The company has been subject to much controversy over the past few years. In 2012, billionaire investor Bill Ackman accused the company’s business model of being a pyramid scheme, meaning the company makes more money from recruiting sellers than selling actual products. Despite the accusations Herbalife climbed more than 140 percent in 2013 and denied Ackman’s claims. However, a few weeks ago, Sen. Ed Markey (D-Mass.) implored the Securities and Exchange Commission to investigate Herbalife and their shares have tumbled 13 percent. The questionable sales tactics used by Herbalife and the current investigations from the SEC makes this stock a firm “Don’t Buy.”
coreysm10@bonaventure.edu
