Despite faltering Friday, the markets ended the week with a very respectable gain; the Dow was up 1.1%, the S&P .86%, and the NASDAQ .28%.

The Federal Reserve’s comments on Tuesday did not stray far from what was expected. It was the general consensus that rates would not be raised, but some were worried that the Fed might hint at rate changes in the near future. The Fed did not telegraph any imminent changes, and the markets were mildly assuaged, moving up about  0.6% Tuesday.  We have observed that it is Bernanke’s style to be freer with telegraphing coming action than past Fed chairman Alan Greenspan.

We’ve paid special attention to the Dow Jones Transportation Index, and have noted that is it performing better than most other indices. The Transportation Index is a leading indicator. Typically, it is one of the first industries to move in the early stages of a recovery. If the shipping industry is doing well, it means there are more things being made that need to be shipped.   This message from the transportation index is good news for the economy overall, and helps to bolster our faith that the economy is on its path to recovery.

Next week will be relatively light on data. Durable goods, consumer confidence, and jobless claims will highlight the week.