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- Nervous Market Responds to BP Dividend Cut - 10 June 2010
- Investors Cautiously Optimistic as Oil Prices Drop and Markets Rally - 24 July 2008
- Markets Rally – But Killjoy Analysts Warn that the Bad Times are Not Yet Over - 18 July 2008
- 2008 Second Quarter Results Indicate Tough Times Not Over - 1 July 2008
- Rapid Turnaround from Bull to Bear - 10 June 2008
- A Free Business Management Lesson from the Gentle King in Riyadh - 3 June 2008
- Top Alternative Energy Stock Picks - 22 may 2008
Following the pattern of the previous two days, Wall Street experienced a late in the day decline on Wednesday with the Dow Jones industrial average falling 40.73 points, the Standard & Poor's 500 shedding 6.35 points and the Nasdaq Composite Index slipping 11.72 points, ending the day at 9899.25 points, 1055.65 points and 2158.85 points respectively. A major concern for investors, which is believed to have been the primary cause for Wednesday's dismal market performance with energy shares dropping and dragging other sectors down, was the likelihood of BP cutting its dividend in order to fund the cleanup of the oil spill disaster wreaking havoc in the Gulf of Mexico and beyond. There has been speculation on Wall Street that BP’s circumstances are so dire that they may take the route of seeking bankruptcy protection.
Prior to 3 July it appeared that there was no stopping the rising oil prices and, understandably, many investors began to despair. The elevated oil price was one of the factors behind the prevailing bear market, and stock exchanges began to feel the negative effects of the resultant decrease in trading volumes. The general consensus has been that investors should be patient, sit tight, and wait for the bear to leave town.
Just when investors were starting to think that there would be no end to the downward spiral on the stock markets, concerns with regard to the U.S. economy and financial system eased up a bit in the past two days. This had a marked positive effect on global stock markets, as did the unexpected fall in oil prices. Moreover, solid results for some U.S. banks helped to stem the flow of negativity, while the announcement by the International Monetary Fund (IMF) that its 2008 global growth forecast has been adjusted to 4.1 percent from 3.7 percent added to the positive tone.
With the second half of 2008 looming ahead, the general feeling among stock market investors and financial analysts is anything but optimistic. Following a nerve-racking first quarter, the second quarter of 2008 started off with many investors believing that the worst was over and that earnings growth and stocks would pick up as the year progressed. These high hopes were dealt a death blow as the effects of the credit crisis lingered, oil prices soared, inflation worries persisted and consumers continued to curb their spending.
The optimism on Wall Street on Thursday 5 June 2008, brought about mainly by some retailers turning in surprisingly good sales figures, as well as strong worker productivity in the first quarter, resulted in the Dow Index climbing 214 points. This bullish outlook was abruptly turned around to become bearish on Friday when the rate of unemployment surged, speculation ran rife with regard to the possibility of Israel attacking Iran, and the biggest one day oil price increase in history (more than $10 per barrel) sent the Dow plummeting by 400 points. This dramatic change serves to remind investors of the extreme volatility of the current market.
“Why should our browsers care?”
The editor was in a foul mood, inappropriate for the first signs of spring outside.
Green, black, and red are confusing colors. You care for the environment. Can Green Business make money? What if Alternative Energy stocks land you in the red?
- Video: Sarah Quinlan on European Debt Crisis, Outlook
- Tuesday 22 May 2012, 8:39 am - Video: Pimco's Clarida on Global Economy, Greece
- Tuesday 22 May 2012, 8:15 am - Video: CDU's Fuchs on Level of Euro, Contagion Risks
- Tuesday 22 May 2012, 8:03 am - Video: Europe Banks Shunned in Franklin's Stocks Portfolio
- Tuesday 22 May 2012, 7:53 am - Video: Scholnick Focused on Facebook's Long-Term Value
- Tuesday 22 May 2012, 7:48 am - Video: AlixPartners's Crawford on Global Economy, Strategy
- Tuesday 22 May 2012, 7:43 am
- Jobs Market Continues to Sway Investors
- Thursday 3 may 2012 - Features - July 2014 Compliance for Volcker Rule
- Friday 20 April 2012 - Markets - JOBS Act - Easing Regulations for Growth
- Thursday 5 April 2012 - News - FHFA to Bulk-Sell Foreclosed Homes
- Thursday 22 March 2012 - News - High Frequency Trading
- Thursday 8 March 2012 - Features - Stock Exchange Listing and Delisting
- Thursday 23 February 2012 - Features


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