May 26, 2009 (FinancialWire) (By Genevieve Hawkins) — Stocks were able to hold on to their gains from the two-month rally last week, but concerns about a GM (NYSE: GM) bankruptcy could sink shares in the coming days.

Despite dips last Thursday and Friday the Dow gained 0.1% for the week, while the S&P 500 eked out a 0.5% gain and the Nasdaq rose 0.7%. With a raft of economic news following the Memorial Day holiday, investors may be scrutinizing the data more carefully. Suddenly, a slowdown in the rate of descent isn’t good enough to cause a rally.

A major wild card in any potential market moves is the recent fall of the U.S. dollar, which is driving up oil prices and, counter-intuitively, supporting those companies with a large foreign exposure. Demand for the dollar may rise as it emerges as the currency of choice for carry trades, which could influence the coming Treasury auction of $101 billion in bonds. A continued decline in the greenback could lead the market up but a correction is better for the U/S. consumer at this juncture.

For the week, investors will likely parse through economic readings on gross domestic product, consumer confidence and home sales, and the data may not pass muster now that the minimum requirement for good news has been lifted. There should be a pullback in the coming week, which would be an ironic sign of stabilization in the new topsy turvey world.

The Investrend Earnings Calendar features Bank of Montreal (NYSE: BMO), expected at $0.86 versus $1.19 a year ago; China Mass Media (NYSE: CMM), expected at $0.25 versus $n/a a year ago; Donaldson (NYSE: DCI), expected at $0.3 versus $0.57 a year ago; Take-Two Interactive (NASDAQ: TTWO), expected at $-0.13 versus $1.52 a year ago.

The Investrend Economics Calendar lists Weekly Chain Store Sales (8:55 a.m.), Case-Schiller Home Price Index for March (9 a.m.), Consumer Confidence Index for May (10 a.m.), Treasury auctions 3&6-month bills (11:30 a.m.), Treasury auctions 2-year notes (1 p.m.).

The Investrend Events Calendar showcases DB Annual General Meeting.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 19 advancers versus 31 decliners. Advancers were led by Cougar Biotechnology, Inc. (NASDAQ: CGRB) up 15.79%, Autodesk, Inc. (NASDAQ: ADSK) up 9.93%. Decliners followed Gen Motors (NYSE: GM) down 25.52%, Suntech Power Hldgs (NYSE: STP) down 7.35%.

Vote in the Investrend Poll Question of the Day at Investrend Information (http://www.investrendinformation.com).

Investrend Website of the Day: http://www.mysteriouspeople.com/Hauser1.htm

Quote of the Day: “America’s one of the finest countries anyone ever stole.” Bobcat Goldthwaite

Today is: no holiday listed.

Happy Birthday: Al Jolson, John Wayne, Jay Silverheels, James Arness, Miles Davis, Stevie Nicks, Hank Williams Jr., Sally Ride, Bobcat Goldthwaite.

Today in History: Napoléon Bonaparte (Napoleon I) assumed the title of King of Italy in 1805 and was crowned with the Iron Crown of Lombardy in the Duomo di Milano gothic cathedral in Milan. Mysterious feral child Kaspar Hauser was discovered in 1828 wandering the streets of Nuremberg. Nicholas II became Tsar of Russia in 1896. Charles Dow published the first edition of the Dow Jones Industrial Average in 1896. In 2002, the Mars Odyssey found signs of huge water ice deposits on the planet Mars. Only three days after a previous record in 2003, Sherpa Lakpa Gelu climbed Mount Everest in 10 hours 56 minutes.

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