WALL STREET : Volatile Ride To A Down Week

Dow dives 93 pts as investors awaits Housing, Consumer Confidence & GDP Data next week

The Dow Jones Industrial Average (DJIA – 12,512.04) gave up 93.3 points, or 0.7%, by the time the bell mercifully sounded. Only Walt Disney (DIS) and Kraft Foods (KFT) bucked the trend lower, while Alcoa (AA) and JPMorgan Chase (JPM) led the bearish majority with losses of 2.5% and 2%, respectively. While the Dow found support in the 12,500 level, today's retreat pushed the blue-chip barometer to a loss of 0.7% for the week.

The S&P 500 Index (SPX – 1,333.27) ended near its intraday nadir, finishing with a loss of 10.3 points, or 0.8%, to settle at the psychologically significant 1,333 level -- which marks double its March 2009 low. Finally, the Nasdaq Composite (COMP – 2,803.32) swallowed a similar loss of 20 points, or 0.7%, but found a foothold in the round-number 2,800 region. For the week, the SPX gave up 0.3%, while the tech-rich COMP fared the worst of its peers, surrendering 0.9%.

Data related to housing, consumer confidence and economic growth will all be eyed next week by investors looking for signs that the U.S. economy is strengthening.

The housing sector has been especially slow to rebound after the worst financial downturn in the U.S. since the Great Depression. Analysts believe a full-fledged recovery won’t occur until the housing market hits a bottom. All signs seem to indicate that that hasn’t happened yet.

Sales of new single-family homes in April will be released on Tuesday. These homes are competing with a surplus of existing homes put on the market due to record foreclosures. Housing experts say buyers are sitting on the sidelines waiting for prices to fall further, which is good for individual buyers but bad for the nation’s housing market.

On Wednesday home builder Toll Brothers (TOL: 20.66, +0.05, +0.24%) is expected to report its quarterly earnings and those figures will certainly have an impact on the broader markets.

Meanwhile, on Tuesday two Congressional committees will hold hearings important to U.S. consumers. A Senate committee will discuss the future of the housing finance system, and a House committee will hold a hearing on domestic oil and gas production.

The second estimate of first-quarter GDP is due Thursday. The preliminary report placed growth at 1.8%, but that number is expected to be revised higher as a result of an increase in consumer spending. Consumer spending comprises 70% of the U.S. economy.

April personal income and spending reports are due Friday and are expected to show that incomes rose modestly, while spending was slightly higher. Consumer spending rose in no small part due to increased costs tied to soaring food and energy prices.

Final readings for consumer confidence in May are due Tuesday from the Conference Board's Consumer Confidence Index, and on Friday for the Reuters/University of Michigan Consumer Sentiment Index. Earlier readings showed improved confidence as labor markets seemed to be gaining traction earlier this spring. But revisions my inch downward as higher gas and food prices eat into consumers’ pocketbooks.

HAPPY INVESTING & GOODLUCK2ALL