TAKE-A-LOOK: Economic optimism may trump GM bankruptcy
Wall Street faces a historic shake-up next week as General Motors, a pillar
of American industry, heads into bankruptcy, but the market could advance
further if economic data signals the worst of the recession has passed. Stocks could also get a boost if commodity investors see more signs of a
recovery in demand as it would boost profits and share prices of resource
companies, and particularly the oil industry. Though the markets closed out May with a third straight month of gains, the
longest monthly winning streak since the fall of 2007, the broad S&P 500
appears stuck in a range around the 900 level. Action in the foreign exchange market and turmoil in U.S. government bonds
could undermine the S&P 500, however, as it tries to keep a grip on the nearly
36 percent gain accumulated since diving to 12-year lows in March.
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