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This Week's Market Review

The market rebounded from last week's losses as all three of the major market indices ended the week in positive territory. The big news for the week was the election as the Democrats took over control of the House and the Senate. The likelyhood of a deadlocked Congress, however, was not a surprise to the market. There was some sector reaction to the election as drug companies took a hit over concerns of increased regulation and Medicare pricing. Outside of the election there was little news of importance. New claims for unemployment remained low and the trade deficit dropped in September due to lower oil prices. The yield on the 10-year note remained nearly unchanged at 4.59%. The focus now turns to economic data as the week ahead will see numerous reports including October retail sales. On Tuesday the core PPI will be released with the core CPI due on Thursday. The market tone remains positive although there is some concern the year-end rally may have already occured as well as the Fed possibly not lowering rates next year as early as expected.

The DOW closed the week up, gaining 122.39 points to close at 12108.43. The S&P rose 1.2%, adding 16.60 points, ending the week at 1380.90. The NASDAQ surged 2.5%, climbing 58.93 points, ending the week at 2389.72.