- Commentary -

August 24, 2009 (FinancialWire) (By Genevieve Hawkins) — Stocks soared last week following Ben Bernanke’s positive assessment of the economy, but with retailers such as jeweler Tiffany (NYSE: TIF) reporting in the coming week, the focus may return to the consumer.

Last week better than expected home sales data helped propel the Dow up 2.0%, while the S&P 500 rose 2.2% and the Nasdaq climbed 1.8%. The rally off of March lows has been impressive, but it hasn’t been determined how much of the growth is related to one-time stimulus spending.

Consumers rules in the coming week, with readings on consumer sentiment and second quarter GDP (about 70% of which is derived from consumer spending) expected. Despite rosy home sales data and a buoyant mood about the prospects of an economic recovery, market watchers may still be getting ahead of themselves. Consumer spending is not likely to right itself until the employment picture brightens, although the $8000 tax credit for first time homebuyers and the Cash For Clunkers program could give some numbers a boost.

The euphoric mood about an economic recovery is likely to fade as the week progresses. The market could sink hard if the GDP report is below expectations.

The FirstAlert(tm) Economics Calendar lists Treasury auctions 3&6-month bills (1 p.m.).

The FirstAlert(tm) Events Calendar showcases ATSI, HOLX, NUVA, WAG at Barrington Research Healthcare Conference.

FirstAlert(tm) Website of the Day: http://www.antarcticconnection.com/antarctic/weather/index.shtml

Quote of the Day: “To give an accurate and exhaustive account of the period would need a far less brilliant pen than mine.” Sir Max Beerbohm

Today is: Vesuvius Day.

Happy Birthday: Sir Max Beerbohm, Mason Williams, Orson Scott Card, Cal Ripken, Jr., Marlee Matlin, Dave Chappelle.

Today in History: Mount Vesuvius in Italy erupted in 79, burying the cities of Pompeii, Herculaneum, and Stabiae in volcanic ash. The printing of the Gutenberg Bible was completed in 1456. British troops invaded Washington, D.C. in 1814 and burned down the White House and several other buildings. Charlotte Brontë finished Jane Eyre in 1847. Amelia Earhart in 1932 became the first woman to fly across the United States non-stop. A temperature of -88°C (-127°F) was measured in Vostok, Antarctica, in 1960, a world-record low at the time. The 200-metre freestyle was first swum in less than two minutes in 1963 by Don Schollander (1:58). Led by Abbie Hoffman, a group of hippies temporarily disrupted trading at the NYSE in 1967 by throwing dollar bills from the viewing gallery, causing a cease in trading as the brokers scramble to grab them up. Pink Floyd performed in 1971 in an abandoned Pompeii amphitheatre on the 1892nd anniversary of the disappearance of Pompeii.

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