For the week ending May 2, 2008, the Dow Jones Industrial Average closed above 13,000 for the first time since January 3, as the Federal Reserve cut interest rates by another 25-basis-points to 2%, and as investors found a silver lining in the jobs report. The Standard and Poor's 500 Index and the Nasdaq rose on the strength of the tech and financial sectors. All MMBB funds gained ground, as well.

In announcing its seventh interest rate cut since July 2007, the Fed indicated that it remains troubled by the economic outlook but, for now, it was not likely to cut interest rates further. Stocks dropped for the day but rebounded Thursday and Friday. The Fed's comments helped shore up the weak dollar and calmed some fears about inflation.

Investors welcomed the Nonfarm Payrolls report showing that employers cut only 20,000 jobs in April, versus an anticipated 75,000 jobs. In other encouraging economic reports, the gross domestic product was slightly higher than expected for the first quarter, new orders at U.S. factories jumped a much stronger than expected 1.4% in March and personal spending rose 0.4%, twice as much as forecast. 

On the down side, consumer confidence fell to a five-year low in April, car sales fell to their lowest level in nearly a decade, the fall in home prices is accelerating and consumers are feeling the pain of higher food and energy bills.

Crude oil rose on signs that the economy might be improving, closing up $3.80 a barrel, or 3.4%, to $116.32.

Overseas, European stocks gained on the better-than-expected U.S. nonfarm payroll data.