- Commentary -

September 14, 2009 (FinancialWire) (By Genevieve Hawkins) — It’s been one year since the fall of Lehman Brothers (OTCBB: LEHMQ) sent shockwaves through the financial system, and signs may be pointing to another drop on Wall Street. Hopes for an economic recovery last week helped propel the Dow up 1.7%, while the S&P 500 rose 2.6% and the Nasdaq jumped 3.1%. Although the Fed was able to avert a financial meltdown last fall, hopes for a U.S.-based recovery in the absence of job growth look overly optimistic.

For the coming week many investors will be eyeing earnings preannouncements from companies, which may be used to analyze the extent of the corporate recovery. There will be economic readings in the coming week on the Producer Price Index, July business inventories, and retail sales. Many investors are optimistic after the recent seesaw gains that there will be an extended rally, but such a move seems unlikely. Companies that were able to cut out costs and have better than expected earnings through job cuts will eventually create a negative feedback loop. The autumn months are traditionally not good for stocks, and it appears likely that this year will follow the history.

[Go to http://www.financialwire.net/?s=genevieve+hawkins to see more commentaries by Genevieve Hawkins.]

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The FirstAlert(tm) Economics Calendar lists Treasury auctions 3&6-month bills (11:30 a.m.).

The FirstAlert(tm) Events Calendar showcases  ACGL, AWAC, FSR, HCII at Fox-Pitt, Kelton Inc Bermuda in Boston Conference; ADSK, FLWS, NVTL, SAP at ThinkEquity Growth Conference; FFIN, GBCI at SourceMedia America’s Bank Board Symposium; HTSX, SNDK, STAR, DMAN at Deutsche Bank Securities Technology Conference; HUM, ABT, GILD, MHS at Morgan Stanley Global Healthcare Conference; MAPP Presentation of Phase 3 LEVADEX data.

FirstAlert(tm) Website of the Day: http://nobelprize.org/educational_games/medicine/pavlov/

Quote of the Day: “A lot of pop music is about stealing pocket money from children.” Ian Anderson

Today is: National Boss/Employee Exchange Day.

Happy Birthday: Alexander von Humboldt, Ivan Pavlov, Margaret Sanger, Hal B. Wallis, Clayton Moore, Walter Koenig, Sam Neill.

Today in History: Francis Scott Key wrote The Star-Spangled Banner in 1814. Ottoman Empire signed the Treaty of Adrianople with Russia in 1829, thus ending the Russo-Turkish War. During the Mexican-American War, Winfield Scott captured Mexico City in 1847. Typewriter ribbon was patented in 1886. Two rockets designed by the German engineer Ernst Mohr, the first German post-war rockets, reached the upper atmosphere in 1958. Ken Griffey, Jr. and his father, Ken Griffey, Sr. became in 1990 the first father-son duo to hit back-to-back home runs. Kiribati, Nauru and Tonga joined the United Nations in 1999.

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