From a very short perspective, today’s market sentiment was swayed by two factors. There was an economic data report released and also a political announcement regarding new market regulations. Of note is that fact that we are dealing with the worst performing quarter since Q3 of 2002.

One bit of unexpected positive news came from the Chicago Purchasing Managers Index, the regional survey showed that manufacturing had increased to 48.2 in March. The figure was 44.5 in February and had been widely expected to be 47.3. Any figure lower than 50 still represents a contraction of manufacturing activity however.

The Treasury Secretary Henry Paulson has proposed a 218 page plan to merge the day–to-day supervision of banks into one agency from five existing agencies. The attempt is to modernize the regulatory process and keep the U.S. financial system more competitive. The Federal Reserve will be given increased power to stabilize the entire financial system. Also under the plan, the Securities Exchange Commission (SEC) with will merged with the Commodity Futures Trading Commission. Some other details include creating a federal charter for insurance companies and closing the Office of Thrift Supervision.

Key economic data for the week starting March 31st, 2008. Numbers shown are consensus estimates (market anticipates this value) and prior value.

Tuesday:
	00:00 Auto Sales Mar 5.1M 5.0M 00:00 Truck Sales Mar 6.6M 6.6M 10:00 Construction Spending Feb -0.9% -1.7% 10:00 ISM Index Mar 47.5 48.3

Wednesday:
	08:15 ADP Employment Mar -45K -23K 10:00 Factory Orders Feb -0.8% -2.5% 10:30 Crude Inventories 03/29 NA 88K

Thursday:
	08:30 Initial Claims 03/29 365K 366K 10:00 ISM Services Mar 48.5 49.3

Friday:
	08:30 Nonfarm Payrolls Mar -50K -63K 08:30 Unemployment Rate Mar 5.0% 4.8% 08:30 Hourly Earnings Mar 0.3% 0.3% 08:30 Average Workweek Mar 33.7 33.7

© HGH Associated Press

News Archive (from 1/1/2008 until 3/31/2008)