National Picture
March was a volatile month for the stock market, with indexes losing the gains they made over the past two months, only to regain them at the end of the month. Terrorist concerns played a role in pushing the market lower after the major attack in Spain. Especially hard hit were U.S. airline and travel stocks. (The Denver Post, Mar. 12, 2004). The stock market pulled back up after the Commerce Department released a report confirming that the economy grew at a 4.1 percent annual rate during the last quarter of 2003. (The Denver Post, Mar. 26, 2004). Strong profit outlooks fueled the market even higher at the end of the month. (The Denver Post, Mar. 30, 2004).
Job data indicated a small amount of growth in February, confirming the ongoing "jobless" recovery. The unemployment rate for the nation remained unchanged at 5.6 percent. Low interest rates continue to counter the impact of static job growth, with the stock market maintaining its strength. (The Rocky Mountain News, Mar. 6, 2004). A survey shows, however, that more U.S. employers say they expect to add workers in the next quarter than in any three-month period since 2001. (The Denver Post, Mar. 16, 2004). Mid-month, some economic reports signaled hope that jobs may be coming, as unemployment claims fell to their lowest level in three years. (The Denver Post, Mar. 19, 2004).
Consumer confidence nationwide continues to be strong, as comsumers have increased spending for 48 quarters straight. Unfortunately, much of the spending is for credit-card, auto, and consumer debt. (The Denver Post, Mar. 7, 2004).
Fuel prices have risen to their highest levels since prior to the Iraq war, approaching $3 per gallon in some cities. So far the economy is weathering the high prices and has not sucumbed to inflation or economic stagnation. (The Denver Post, Mar. 10, 2004).
Regional News
Regionally, Colorado continues to see improvements in the local economy. Consumer confidence in the Rocky Mountain states rebounded faster than any other part of the country during the past year, as reported by the Conference Board's Consumer Confidence Index. (The Denver Post, Mar. 4, 2004).
Falling mortgage rates pushed up metro home sales to levels 33% over March of 20003. The median price of a single family home was $231,000, an increase of 3.1% from a year ago. The number of homes on the market rose, also. (The Denver Post, Mar. 24, 2004).
Colorado's technology economy is rated No. 3 in the nation, inspite of the downturn it has suffered over the last two years. It trails Massachusetts and California on the "State Technology and Science Index," which measures the capacity of states to compete in the information age. (The Denver Post, Mar. 31, 2004).
On March 31, the Colorado Department of Labor and Employment released statistics indicating that although the state unemployment rate is decreasing, businesses aren't adding any more jobs than they were a year ago. Analysts suggest that some people are starting their own businesses. (The Daily Camera, Apr. 1, 2004). This coincides with other local analysts (Rocky Mountain News, Apr. 10, 2004) . The figures from the US Bureau of Labor Statistics show that Denver ranked as the 3rd worst in the nation for job losses. This is somewhat contradicted by the decrease in unemployment. Some say this is due to the BLS not including the creation of small businesses in the area.
Colorado's top performing stocks and mutual funds during the first quarter were in the biotechnology and energy sectors. Manufacturers also did well, but many tech and telecom companies fell. The top performing stocks were ACT Teleconferencing and Titanium Metals Corp. The top mutual funds were Janus Overseas and Invesco Energy. (The Denver Post, Apr. 1, 2004).
