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- Is US Economy Heading for a ‘Double Dip’? - 3 December 2009
- Ethical Consumerism - 23 November 2009
- Mobile Communications Market Thrives Despite Tough Times - 20 August 2009
- Wall Street Rally Over As GM & Chrylser Cut Dealerships - 18 may 2009
- Some Highlights of Wall Street’s Week Ahead - 4 may 2009
- Investors to Consider U.S. Economic Stimulus Package, Company Reports, January Barometer in the Week Ahead - 26 January 2009
- Investors Cautiously Optimistic as First Trading Week of 2009 Kicks Off - 5 January 2009
With the majority of economic analysts in agreement that the US economy is moving out of the recession and is in a recovery phase, many are still dubious, biding their time to see if the recovery will be sustained, or go into decline again in what is being termed as a 'double dip'. The view that the US economy is in recovery is being based primarily on the 3.5 percent growth experienced in the third quarter, but the surge of optimism has not touched everyone, and some economists are calling for authorities to be prepared with economic stimulus plans to be put into action early next year, particularly with the aim of creating jobs in a struggling labor market where the ranks of the unemployed keep growing.
With it being an accepted fact that consumer spending is a driving force behind the US economy, as we head into the festive season, retailers are no doubt hopeful that consumers will ease the negative impact of the economic crisis that has held the country in its grip all year. However, as consumers continue to grapple with job losses and pay cuts, which have led many to lose their homes and other assets, they have been forced to trim down their shopping lists and redefine what they may have viewed as necessities in the past. This redefining may very well also have a negative impact on ethical consumerism, a practice which is also referred to as ethical purchasing, ethical consumption, green consumerism and moral purchasing.
With technology continuing to move ahead rapidly, there is no denying that techs present a highly competitive, and lucrative, market sector. Currently in the news is the battle of the search engine titans as Microsoft and Yahoo attempt to secure at least an increased portion of a market indisputably dominated by Google. Another ongoing battle that is no doubt of interest to stock market traders is that between Research In Motion (RIM), the manufacturers of BlackBerry, and Apple with its iPhone, in what has become known as the "Smartphone Wars".
By Wednesday of last week, when markets took a dive on Wall Street following the worse-than-expected retail sales results for April, as well as dismal results on housing and employment, there was still some optimism that Thursday and Friday could possibly see markets recoup their losses and extend the two month rally - but this was not to be. As more bad news filtered through to investors, Friday was somewhat of a roller coaster ride, ending the week with all three major indexes – the Dow Jones Industrial Average, Standard & Poor’s 500 and Nasdaq Composite - declining for the first time in ten weeks.
In a market where the phrase "less worse" appears to be an acceptable replacement for "improved" when discussing stock market performance, analysts and investors are grasping at any news that may be seen as positive. While Thursday saw major stock indices ending slightly lower, the unofficial closing figures revealed that the Dow ended the month of April on a positive note with an increase of 7.4 percent, while the Nasdaq climbed 12.4 percent and the S&P 500 jumped 9.4 percent for the month.
With President Obama’s grim summing up of the nation’s economic situation on Saturday, and facing a barrage of company reports in the coming weeks, stock market players are hopeful that the fact that the Dow gained ground after wavering below the 8,000 point level for four days in a row, could very well indicate a bottoming out of the market. While some may see this as clutching at straws, others feel that the Obama administration’s proposed economic stimulus package may turn this hope into a reality.
The first trading day of 2009 on Wall Street proved to be somewhat encouraging, with advances across the board resulting in the Dow Jones industrial average rising 2.9 percent, the Nasdaq composite gaining 3.5 percent and the Standard & Poor’s 500 index rising 3.2 percent. With Monday 5 January signaling the start of the first full week of trading for 2009, U.S. investors are cautiously optimistic despite anticipating less than favorable economic news in the days ahead.
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