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  • BP, Goldman Sachs, United & Continental Feature in Week Ahead - 3 may 2010
  • The upward swing of the market over the past two months, with the Dow enjoying its longest run of positive performance in six years, was brought to an end last week. Heading into the month of May, there varying opinions among stock market investors as to whether the market is entering bear territory, or if this is a minor setback that will be resolved in the coming week.

  • First Quarter Earnings Start to Trickle In - 12 April 2010
  • Two weeks into the second quarter of 2010, stock market players have plenty to look forward to as first quarter results start to trickle in. With the Dow ending last week just short of the 11,000 mark (after having crossed it and retreated during the day on Friday), and the Nasdaq index and S&P 500 reaching almost two year and 18 month highs respectively, it appears that investors have cause to be optimistic. After earnings that were boosted by cost-cutting measures mid-2009, followed by mediocre performances, the general opinion seems to be that US companies which have survived the economic turmoil will start to show profits. Earnings are expected to have climbed by around 37% for the first quarter of 2010 as measured against the same period in 2009. Revenues are looking at a 10% increase for the same time period.

  • The Dow Breaks the 10,000 Barrier - 15 October 2009
  • Although many see it more as a psychological breakthrough for investors rather than a technical achievement, the fact that the Dow rose above the 10,000 point mark for the first time since October 3 last year had a buoyant ripple effect on stock markets in countries other than the United States, with Japan's benchmark Nikkei jumping by 1.8 percent. The advance on Wall Street was led by positive results from JP Morgan Chase, but was broad based with a total of 25 of the 30 Dow components increasing. These included Fortune 500 companies Caterpillar, Chevron, IBM, Hewlett Packard, United Technologies and Exxon Mobil.

  • Investors Hopeful for Dow to Pass Five-Digit Mark - 12 October 2009
  • Friday saw stock market indicators closing at their highest level in a year as Alcoa kicked off the third quarter earnings season by reporting an unanticipated profit. Additional factors behind the surge in stocks included a rally by Intel and IBM as well as better-than-expected economic data which is seen as an indication that the US recession is coming to an end. The Dow Jones industrial average reached 9,864.94, being an increase of around 4 percent, at close of business on Friday, while Standard & Poor's 500 stock index closed at 1,071.49, an increase of 4.5 percent for the week, and the Nasdaq composite index ended the week at 2,139.28, being a gain of 3.99 percent for the week.

  • A Year After Lehman Collapse & Business As Usual on Wall Street - 14 September 2009
  • A five day rally on Wall Street was brought to an abrupt end on Friday, with the Dow Jones industrial average losing 21 points, the Standard & Poor’s 500 index losing 1 point and the Nasdaq composite falling three points. The Dow and S&P had ended Thursday session at their highest levels since 6 October 2008, while the Nasdaq had ended Thursday at its highest point since 26 September. Wall Street’s so-called "fear gauge" the VIX, which typically moves in the opposite direction of stocks, closed at its lowest point since 8 September 2008 on Friday.

  • Market Responds Positively to Fed’s Report - 13 August 2009
  • Cautious trading on Wall Street prior to the two day meeting of the Federal Reserve, took a positive turn on Wednesday with major indexes rising early in the session, and rising further still in response to the news that the Federal Reserve considered the economy to be "leveling out" as opposed to the previous view that the decline in the economy had been slowing down, but declining nonetheless. The Fed further revealed that interest rates would remain unchanged at a rate of 0-0.25 percent, going on to warn that economic activity will most likely remain weak for some time.

  • Investor Confidence Boost Reflected in July Results - 3 August 2009
  • Investor optimism was boosted on Friday as the month of July drew to a close, with all three major stock market indicators ending on a high note for the month. Data revealed that the economy had shrunk less than expected in the second quarter, and while bearing in mind that the percentages are being measured from a lower base, investor confidence was reflected in the Dow’s 8.6 percent increase, the rise by 7.4 percent for the Standard & Poor’s 500 and the Nasdaq composite climb of 7.8 percent for the month – making July 2009 the best the Dow has achieved in twenty years, while the S&P 500 notched up its best performance since 1997.

  • Investors Ponder Housing Market, Regulatory Restructuring and Inflation/Deflation Fears - 24 June 2009
  • Monday saw stocks fall to a three-week low on Wall Street, mostly due to the World Bank's dismal outlook on the global economy growth. The better than expected housing market report slowed the decline on Tuesday, but failed to regain losses entirely and the day drew to a close with the Dow Jones industrial average falling 0.2 percent, the Nasdaq composite remaining virtually unchanged and the Standard & Poor's 500 managing a 0.2 percent gain. Prior to the losses recorded over the past week or so, markets had enjoyed a 14 week rally, primarily fuelled by optimism that the economy was on the road to recovery - a viewpoint which now appears to have been premature, or overly optimistic.

  • Bank Credit Rating Cuts Ahead of Regulator Overhaul - 18 June 2009
  • Fears that the recession may drag on longer than anticipated, made investors nervous and impacted negatively on Wall Street at the beginning of the week. A tech rally on Wednesday boosted the Nasdaq composite index with a gain of 0.7 percent. However, news of credit rating cuts for US banks caused financials to slide, dragging the Dow Jones industrial average with it, ending the day with a 0.1 percent loss, with a similar loss being recorded by the Standard & Poor's 500.

  • Wall Street Recoups 2009 Losses, Looks to Week Ahead - 15 June 2009
  • Following a day of ebb and flow on Wall Street, stock closed mixed on Friday with the Dow Jones industrial Average wiping out this year’s losses, ending the week at 8,799.41, while the tech-heavy Nasdaq composite fell to 1,858.80 and the Standard & Poor’s 500, a broad-market based index, crept up to close at 946.19. Trading volumes were sparse as the week drew to a close, which many view to be typical of summer trading and no cause for concern. Stock market investors appeared to be unaffected by the consumer sentiment index compiled by the University of Michigan, which showed a gain in June to be somewhat below market expectations, indicating that consumer optimism with regard to improved economic data has been dampened by concerns over inflation and the possible impact of higher interest rates.

  • Job Loss Slow Down Encourages Investors as They Look to the Week Ahead - 8 June 2009
  • Friday saw the Dow Jones industrial average edge higher, gaining 12.89 points (0.15 percent) to an unofficial close of 8,763.13, while the Standard & Poor’s 500 dropped 2.37 points (0.25 percent), ending the day at an unofficial 8,763.13, and the Nasdaq Composite closing virtually static. This is the eleventh out of thirteen weeks that the Dow has ended on a higher note and one of the reasons cited for this continued rally was the slowing pace of job losses as reported by the Labor Department on Friday. Employers cut 504,000 jobs in April and analysts were forecasting a job loss figure of 520,000 for May, so when the job loss figure was reported as 345,000 for the month of May, it came as a pleasant surprise to stock market traders. There is no denying that this is still a huge number of job losses and far from the desired scenario of flat job loss figures, it nevertheless indicates that, while things are still bad, they are "less worse" – a term commonly used in financial circles today.

  • Continued Job Losses Impact on Wall Street – Will Green Industries Save The Day? - 4 June 2009
  • With U.S. economic data revealing continued extensive job losses and a decline in mortgage applications, along with a worse than expected increase in factory orders, Wednesday saw investors locking down on profits garnered in the last four upbeat stock market trading sessions. Major stock market indexes had declined by close of business on Wednesday with the Dow Jones industrial average losing 64.04 points to close at 8,676.83, the Nasdaq composite dropping 10.88 points to 1,825.92 and the broad-based Standard & Poor’s 500 experiencing losses across all sectors and shedding 12.77 points to a provisional close of 931.97, being 0.73 percent, 0.59 percent and 1.35 percent respectively.

  • Manufacturing Data Boosts Markets Despite Impending GM Bankruptcy - 1 June 2009
  • All major stock market indexes gained more than 1 percent on Friday, ending the week, and the month, on a high and clinching a third month in a row rally on Wall Street. Ahead of markets opening on Monday the Dow Jones industrial average futures rose 1.4 percent, or 121 points, to 8,609, while the Standard & Poor’s 500 index futures rose 1.7 percent, or 15.30 points to 933.40, and Nasdaq 100 index futures climbed 1.4 percent, or 20 points, to 1,455.50. This surge of optimism appears to be as a result of encouraging survey data on manufacturing industries in Europe and Asia, fuelling hopes that the global economy may be turning around and heading toward recovery. Investors anticipate a similarly encouraging survey on the United States manufacturing industry to be released late Monday morning. Although analysts are forecasting the Institute for Supply Management's purchasing managers' index to rise to 42.0 from the 40.1 reported in April, which is still considered to be a contraction, the European and Asian reports have given investors hope that Monday’s report will be better than forecast.

  • GM Bankruptcy Appears Inevitable Following Failure to Strike Deal With Bondholders - 28 may 2009
  • A sharp rise in Treasury yields and the seemingly inevitable bankruptcy of General Motors were contributing factors to stocks falling on Wednesday, with the Dow Jones industrial average falling 173 points, the Standard & Poor’s 500 shedding 17 points and the Nasdaq composite dropping 19 points, representing a decline of 2 percent, 1.9 percent and 1.1 percent respectively. Wall Street had rallied on Tuesday on the strength of an optimistic reading on consumer confidence. However Tuesday’s gains were wiped out in Wednesday’s slump, but analysts generally agree that this is to be expected as investors await more concrete evidence that the so-called “green shoots” of economic recovery are developing.

  • Some Highlights of Wall Street’s Week Ahead - 4 may 2009
  • 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.

  • Markets Rally Despite First Quarter Economic Data - 30 April 2009
  • Wednesday saw Wall Street rally as the Dow Jones industrial average rose 2.11 percent, or 168.78 to end the day at 8,185.73, while the Standard & Poor’s 500 increased 2.16 percent, or 18.48 points to 873.64, and the Nasdaq composite advanced 2.28 percent, or 38.13 points, to 1,711.94. The rally was quite unexpected when taking into account the dismal data revealing that the United States economy contracted in the first quarter of 2009 at an annualized rate of 6.1 percent. Nevertheless, investors were encouraged by higher consumer spending which they took to be an indicator that the recession may end soon. These hopes were boosted when, following a two day meeting of its policy making committee, the Federal Reserve noted that, although the U.S. economy is still contracting, there were signs that the pace of deterioration was slowing down.

  • Axing From Global Dow Highlights Shaky Footing of Citigroup and General Motors - 30 March 2009
  • Although the scheduled annual review of the Global Dow (GDOW) components is only due to take place in September, the extraordinary worldwide market conditions currently being experienced prompted a review of the 150 companies endorsed by the recently established market index. The result of the early review saw the ousting of General Motors and Citigroup – two companies that have been under the microscope for some time now. This has sparked speculation as to whether these two high-profile companies will suffer the same fate on the Dow Jones Industrial Average which monitors 30 top U.S. stock market listed companies, all of which are included in the GDOW.

  • Mood of Cautious Optimism for Week Ahead on Wall Street - 16 March 2009
  • Following last week’s unexpected Wall Street rally, the mood among stock market traders as they face a new week may be best described as one of cautious optimism. The Dow rose by 597.04 points to 7,223.98, while the S&P 500 gained 73.17 pointsto 756.55, being a 9 percent and 10.7 percent increase respectively. The increase has been attributed to a number of factors, including retail sales figures that were better than expected and encouraging results from General Electric, Bank of America, General Motors and Pfizer – all Dow components. However, it was likely the news from Citigroup that it had traded profitably for January and February that played the biggest role in the rally, as short sellers - who had anticipated that Wall Street would keep falling - were sent scurrying to buy stocks back.

  • Investors to Consider U.S. Economic Stimulus Package, Company Reports, January Barometer in the Week Ahead - 26 January 2009
  • 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.

  • Investor Confidence Knocked By Volatile Market – and Vice Versa - 17 October 2008
  • Stock markets in the U.S. opened low on Thursday, with traders apprehensive as to what surprises another trading day may hold. Adding weight to the terms "yo-yoing", "see-sawing" and "roller-coaster ride" that have become commonplace when describing the volatility of the current market, following a morning of stomach-churning declines, the market picked up dramatically with the Dow closing at 8,979 - more than 4 percent up, while the Nasdaq rose more than 5 percent and the S&P climbed by over 4 percent. European markets did not follow suit as has been the case recently, and London’s FTSE, Paris’s CAC-40 and Frankfurt’s DAX all dropped between 4 to 6 percent.

  • Disappointing Commerce Department and Federal Reserve Reports Have Negative Impact On Markets - 16 October 2008
  • Wednesday’s performance on U.S. stock markets, and global markets for that matter, is likely to have squashed any feelings of optimism that Monday’s market rally may have brought about. The Dow Jones industrial average fell 7.9 percent to close at 8,577, while the Nasdaq composite index lost 8.5 percent, and the Standard & Poor’s 500 dropped 9 percent. This tale of woe was echoed throughout the world, with London and Paris markets dropping around 7 percent, the German DAX falling 6.49 percent, and Asian and Pacific stock markets all recording losses.

  • Dramatic Market Rebound a Welcome Start to the Week as Bailout Strategies Are Fine-Tuned - 14 October 2008
  • No doubt driven by the news that governments around the world are taking unprecedented action to bolster the financial sector, Monday saw Wall Street record its most phenomenal bounce back since the 1930s, with major stock markets around the world enjoying similar positive results. Following one of the worst trading weeks ever, the rally was welcomed with elation by stock market players. While not wanting to put a dampener on the high spirits of investors, the question on the minds of many is likely to be: "Is this going to last?" Given the volatility of the market in recent months, the answer to that is anybody’s guess.

  • Is Downward Spiral Heading for U.S. Stock Market Timeout? - 10 October 2008
  • Thursday marked the anniversary of the stock market peak experienced in October 2007, and illustrating how volatile and unpredictable stock market trading has become, the Dow Jones industrial average plummeted to a level that has not been seen in the past five years. Despite the best efforts of world leaders to halt the global financial crisis - the latest being a cut in interest rates by the U.S., U.K., China, Canada, Switzerland and Sweden - it appears to be unstoppable. Words such as “fear” and “panic” have crept into the everyday vocabulary of stock market players and the informed public.

  • Uncertainty Reigns on Wall Street - 13 June 2008
  • The market suffered yet another blow on Wednesday 11 June, when the Dow at the New York Stock Exchange fell by more than 200 points. Ongoing concerns over rising oil prices, along with fears regarding rising inflation and the possibility of interest rates being raised, as well as almost stagnant economic growth, are seen as the main contributing factors behind the market’s current volatility.


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