Analysts disagree just to what extent the recent two-day rally should be attributed to end-of-quarter-window dressing (which often peaks in the final trading sessions of a quarter) or to a new-found improvement in the overall market mood (a true shift to a higher level of investor bullishness). What we do know at this point is that the market has managed to rally in spite of poor news in regards to declining personal income and spending numbers, as well as data showing consumer confidence plummeting. Economist fear that consumer confidence-related data could further suffer as the year progresses - the current data was mainly collected before the two hurricanes devastated the Gulf Coast. Even though crude oil prices are currently pulling back (to the $66 per barrel area today), worries persist about heating oil and natural gas supplies – will there be enough fuel to maintain heating costs affordable this winter?

Because of skyrocketing jet fuel prices (costs are up nearly 40% over the past month), airlines continue to suffer. American Airlines (a unit of AMR) – the largest passenger air carrier in the U.S. - today announced it would have to cut 15 round trips flights (on diverse routes), at least for the time being.

© HGH Associated Press

News Archive (from 6/30/2005 until 9/30/2005)