Sell in May? Commodities - Yes, Stocks and Bonds - No

by The Simple Accountant

After the short holiday week, the final week in April was much more eventful in the U.S. markets: Lots of economic data, a press conference with Fed Chairman Bernanke following the FOMC meeting, another slide in the U.S. Dollar index, extended gains in risk assets, and more indifference in the bond market. Let's get into the numbers and then look at where we might be going in May and beyond.

Week in Review

Stocks: The major U.S. indexes posted another week of solid gains, with most advancing in the 2% range or better. The NDX was a bit of a laggard, gaining only 1.1%, as it was held back by the rebalancing of the index as well as poorly received earnings outlooks from the likes of Microsoft (MSFT) and Research in Motion (RIMM). The Dow transports powered ahead with a better than 4% gain to confirm the move in the Industrials. Volume increased from the holiday week but was nothing spectacular. S&P sector leadership looked a bit odd, with healthcare out in front followed by industrials and utilities, and with materials and tech bringing up the rear in something of a reversal from the prior week. Every sector, however, gained at least 1%. Financials managed to put in a weak rally attempt on light volume, but overall continued to struggle. In foreign stock markets, the MSCI EAFE index gained 2%. But the emerging markets posted a small loss, held back by weakness in the BRICs. The Sensex 30 in Bombay fell more than 2% while the Shanghai Composite dropped more than 3%.

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