Any number below 50 indicates the manufacturing sector is contracting. The national purchasing managers' report is due Monday and is expected to be weak as well. The Federal Reserve lowered interest rates three times by 1.5 percentage points during the quarter to stimulate the economy, but Wall Street, which was looking for more, showed its disapproval in heavy selling. On balance, however, the shift in selling patterns during the quarter was viewed by some strategists as further evidence that a bottom to the yearlong bear market is getting close. February and March were down months, however.
Analysts emphasize, however.
The best way to invest in this environment, in our opinion, is to concentrate on the action of individual stocks and not on the movement of the leading market averages. Friday's session was unusually tame for the end of such a volatile quarter, with gains by all major stock indexes despite continued earnings disappointments. The Russell 2000 led the market with a gain of 2 percent to 450.53. This material shall not be published or redistributed directly or indirectly in any medium.