Weekly Newsletter June 3rd - June 9th

Current Events: Worried investors are anxiously awaiting the performance of the financial markets this week in response to last week's downslide. After Friday's huge sell-off across all major U.S. indexes, fear and doubt is likely to ensue. Many are suggesting that Friday's close will trigger an avalanche of sell signals Monday and throughout the week. The lofty gains experienced in the U.S. markets earlier this year have been almost completely erased in all major indexes.

What to Look for This Week

All eyes will be on any and all developments out of Europe, as well as any reactions from the U.S. Federal Reserve after the large dip last week, which has given already nervous investors to many more reasons to worry. Certainly the anxiety deepens over the euro-zone and U.S. economies as investors seek tangible answers. While it is unlikely, some hints of possible answers may come on Thursday as Fed Chairman Ben Bernanke testifies before Congress.

News Affecting the Markets

The surprisingly weaker-than-expected U.S. jobs data plummeted the U.S. markets on Friday. However, this devastating news did not impact the U.S. alone. The disappointing jobs data has created fresh doubt about the global economy as well, causing the financial markets throughout the entire world to tumble. Many are now anticipating that the U.S. Federal Reserve will go ahead with a counter to the recent poor economic performance with a QE3 stimulus plan.

Smart Investing

Manage the Hidden Fees in Your Life: Unwanted fees have a way of taking their toll on budgets. They appear every month, neatly hidden among the lines of legitimate charges from banks, credit card issuers, brokerages, etc. Each one separately may not amount to much, but add them all together and the costs become significant. To be sure, some fees are unwanted but not unwarranted. Count late fees on mortgages and overdraft fees on checking accounts among that number; they're certainly pesky, but they are the result of untidy financial management. More than one a year should spark consumers to take a closer look at the way they handle money. Some hidden fees, however, can be trimmed in a few simple steps. Hidden fees you should consider reducing/eliminating include maintenance fees, fiduciary fees, cramming fees, garbage fees, ATM fees, and credit card annual fees. While these types of fees may not seem like much individually, collectively they reduce your disposable income. As a result, the amount you have readily available to invest decreases, hindering to some degree the amount you can spend elsewhere, such as towards your investments.

Earnings for the Week

Monday: Dollar General Corp (DG) {After the close}

Tuesday: FuelCell Energy Inc (FCEL) {After the close}, JA Solar Holdings Co Ltd (JASO) {After the close}, Ulta Salon Cosmetics and Fragrance Inc (ULTA) {After the close}

Wednesday: Hovnanian Enterprises Inc (HOV), Men's Wearhouse Inc (MW) {After the close}, Pall Corp (PLL) {After the close}, Rosetta Genomics Ltd (ROSG)

Thursday: Altera Corp (ALTR) {After the close}, J. M. Smucker Co (SJM), Navistar International Corp (NAV), Pep Boys-Manny Moe & Jack (PBY), Quiksilver Inc (ZQK)

Friday: Oracle Corp (ORCL)

* Earnings dates and times are subject to change

Economic Data this Week

Monday
Factory Orders @ 10:00 AM for April (Est. = -0.3% to 0.1%, Prior = -1.9%)

Tuesday
ISM Services @ 10:00 AM for May (Est. = 52.0 to 53.0, Prior = 53.5)

Wednesday
MBA Mortgage Index @ 7:00 AM for 06/02 (Est. = n/a, Prior = -1.3%)

Crude Oil Inventories @ 10:30 AM for 06/02 (Est. = n/a, Prior = 2.213M)

Fed Beige Book @ 2:00 PM for May (Est. = n/a, Prior = n/a)

Thursday
Initial Claims @ 8:30 AM for 06/02 (Est. = 375K, Prior = 383K)

Continuing Claims @ 8:30 AM for 05/26 (Est. = 3,250K, Prior = 3,242K)

Consumer Credit @ 2:00 PM for April (Est. = $10.0B to $12.7B, Prior = $21.4B)

Friday
Wholesale Inventories @ 10:00 AM for April (Est. = 0.2% to 0.5%, Prior = 0.3%)