All Posts Tagged With: "dow jones industrial average"
Is the recession really over?
Jennifer McClelland | RSS | Wed, Sep 16 2009 | 2 Comments
On September 15th Ben Bernanke said that the recession is basically over in a statement that rang so loudly, the stock market shot up like a weed after a rainstorm. Well, it was just over half a percentage point for the Dow today, but up is up, right (I really just wanted to use an illustrative language today and that was what came to mind also)?
So, on top of Bernanke’s statement about the recession being over, there was also new data to come out that said consumer sales were up. Sales rose in the past month the most they had risen over a single month in three years.
All of this news put together made for a pretty good day on Wall Street, but the statement about the recession being over was what made headlines that day. So, do I feel like the recession is over or that it may as well be over?
I think we may have seen the bottom. All indicators are pointing to the fact that we have bottomed out. The Dow Jones Industrial Average is well above the lowest point of the year and the overall stock market is doing well. Job losses have slowed down (although unemployment continues to increase). Consumer spending is starting to climb back up, homes are beginning to pick up in sales (and in return the amount of existing homes on the market is finally beginning to decline), and new construction has started once again on projects all across the country. Even auto sales have been kind of stirred after the Cash for Clunkers program.
But before we can all pack up our briefcases and drive to TGI Friday’s for Happy Hour, we have to remember something, it’s not over until it’s over and there are plenty of people out there who don’t have jobs and can’t pay their mortgages. I hate to be a buzzkill for those who felt like celebrating when Bernanke said the recession was basically over, but there are so many things still going on not only in the U.S. but all around the world that show the global recession is not over and that it will be a long road to go down before we actually see the end (and by the end, I mean economic growth like we were seeing prior to the beginning of the recession).
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Tags: economic growth, unemployment, ben bernanke
Economic Optimism
Michael Bowler | RSS | Tue, May 19 2009 | 0 Comments
Word got around that the economy was showing the signs of revival. The optimism of the experts has quickly been reflected in the buying patterns of investors and the economy is beaming. Yesterday, the Dow Jones industrial average was at a 235 point high, the biggest daily point gain in over a month. This single handedly makes up for three-quarters of last week’s economic plateau and the losses that followed.
An incredible profit report from Lowe’s Company showed increased homebuilder sentiment and positive expert feedback throughout the last few weeks revived investors’ confidence in the impending economic rebound. Stocks began to fall sharply last week as worries that the stocks were rising too fast, reflected by a still low housing market, interrupted the market rally slightly last week, creating a self-fulfilled plateau that we seem to be exiting as buyer confidence is restored.
Analysts believe that stability in the housing market is important to restoring the economy, which will only happen when loan availability is restored and housing prices can go up due to higher demand. “There’s a realization that things are going to get better,” said James Cox, a managing partner at Harris Financial Group. “That’s the main theme of the market over the last couple weeks.”
Despite the recent rallies and yesterday’s upswing, the market is expected to remain volatile as more cautious investors see a rising tide in the economy and confidence is restored. They want to see signs that the economy is actually recovering and not just slowing another descent. So far, the rallies in the economy since March have shown enough signs of stabilization to attract some investors. According to Linda Duessel, equity market strategist at Federated Investors, the rally was driven by “less bad” information. “Probably we’ll get bored with that as the months progress,” she said. “We’ll need something better to move the market.”
There was an adequate boost yesterday as Lowe’s, one of the United States leaders in home improvement products, posted an 8.1% gain. Buying accelerated later as the National Association of Home Builders reflected that gain by reporting that May is beginning to reflect the second consecutive high month in the housing market index.
Banks are also doing well in the market right now. Bank of America posted a 9.9% gain. State Street rose 8.5%. Analysts say the ability for banks to raise money, especially by using the rallies in the stock market, is a sign of strength, albeit late, even if added shares make those already in circulation worth a bit less. Sometimes, apparently, less is more.
James Cox believes the banks are stable. “We’re not going to see any of the large banks go down. And now that we have stabilization in the banking system, we can move forward,” he said. Nine stocks rose for every single one that fell in Wall Street yesterday, a very confident boost. The dollar fell against all major currencies and gold prices also fell. As horrible as that sounds, the dollar has been significantly higher than normal, and gold prices have been the highest ever due to the desire of investors to find something a little more stable. It is very normal for gold prices to go up when the market is going down. They are not conversely related, but they do tend to have opposite trends.
Overseas stocks were mixed, mostly following weak corporate quarterly earnings in Asia. Japan tended to fall an average of 2.4%, Britain jumped 2.3%, and Germany and France both rose 2.4%. This seems to show more confidence in services and finances over technology and products.
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Tags: profit report, economic rebound, dow jones industrial average
Stocks end a little higher today thanks to an agreement on the stimulus bill
Jennifer McClelland | RSS | Wed, Feb 11 2009 | 0 CommentsThe politicians in Washington have made some progress today and agreed on the stimulus bill. Wall Street has basically moved with every little bit of news coming out of Washington dealing with the bill. The bill could mean millions of new jobs and funding for projects.
Investors have been eager for any signals that the economy is set to recover. Supporters hope the bill’s mix of spending and tax cuts will increase consumer spending, which accounts for more than two-thirds of U.S. economic activity.
But investors are still cautious. Wednesday’s 51-point rise in the Dow is “not a strong statement here,” said Kim Caughey, equity research analyst at Fort Pitt Capital Group. “More information is what we need. What I mean by that is what exactly has been agreed to with the stimulus plan.”
And Wall Street remains nervous about how, exactly, Geithner’s financial rescue plan will work out: how it will assess the banks, how it will price their bad assets, and how it will recreate a market for those assets.
Investors “reacted to bad news yesterday. There wasn’t more bad news today,” Caughey said. “People didn’t have a good sleep and say ‘Whew, was I wrong yesterday.’”
The Dow Jones industrial average rose 50.65, or 0.64 percent, to 7,939.53.
I think investors aren’t the only ones looking for a signal for recovery, everyone is.
Source
Stocks jump back up as Dubai is thrown a lifeline and Citi announces it will pay $20 billion back.
Tags: dow jones industrial average, consumers, stimulus plan
Stocks traded slightly up on Christmas Eve
Jennifer McClelland | RSS | Thu, Dec 25 2008 | 0 CommentsSanta brought a little gift to investors on Christmas eve; an end to the five day losing streak in the market.
Christmas Eve is a quiet trading day on Wall Street, but it was enough to increase the Dow Jones Industrial average by half a point. Companies like Delta benefited as oil prices fell further to under $38 a barrel. Large retailers Wal-Mart and Target also did well as last minute shoppers packed their stores.
It wasn’t exactly the “Santa Claus” rally of some people’s dreams, but it was an end to the 5 day slump.
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Tags: stock, rally, investor
Stocks jump 11%, yes in American markets, today!
Jennifer McClelland | RSS | Tue, Oct 28 2008 | 0 CommentsFinally, some good news out of Wall Street! Today the Dow Jones Industrial average jumped 900 points, or 11%. Investors are expecting a rate cut from the Fed later in the week and caused a buying frenzy in the last hour of trading today. The rally did not cause a celebration, however, because many feel as though the market is still extremely volatile and won’t hold.
Today was one of the best days ever for Wall Street, but unfortunately the news is overshadowed by pessimism. Sure, the market probably won’t continue to rally like this, but it is nice to see green instead of red all over CNBC.
Related posts:Stocks jump back up as Dubai is thrown a lifeline and Citi announces it will pay $20 billion back.
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Tags: investor, frenzy, stock
