Reply #4: Dubai crisis, holiday sales will dominate trading [View All]

While markets around the world continue to assess the fallout from Dubai's worrisome debt problems, investors trying to get a handle on the global economy will also factor in some encouraging U.S. retail sales over the Thanksgiving weekend. The question for many is whether they should focus on the possibility of another spreading credit crisis, or signs that consumer spending in this country may indeed be stabilizing.
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Retailers' reports that Thanksgiving weekend sales were respectable may be a pleasant distraction for the stock market. Store owners said shopper traffic was up from a year ago, and held steady through the weekend after a big surge Friday. However, consumers were focusing on the basics, as expected.
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Analysts have been questioning whether the stock market has gotten ahead of the actual economic recovery, especially since some of its recent advance has been due to the dollar's weakness. Many investors were theorizing that the falling dollar would help guarantee that U.S. interest rates would remain stable, making it easier for companies to borrow. Moreover, when the dollar is down, companies that do business with other countries find it easier to sell their goods and services overseas, and their profits rise when those sales are translated into dollars.

http://news.yahoo.com/s/ap/20091130/ap_on_bi_ge/us_wall_street_week_ahead