Posted by: Catherine | June 23, 2009

Market Rally Officially On Hold

The Dow gave up 200.72 points or 2.35% the Nasdaq lost 61.28 points or 3.35% and the S&P was off 28.19 points or 3.06%. While major news sources are giving different excuses for the large sell off, stocks simply did not have the economic data or earnings news that would support trading at these high levels after several months of relatively positive market moves.

Todays losses were basically across the board and it was the worst percentage loss in two months. Financial services, energy and material stocks were among the hardest hit. In addition to profit taking the World Bank cut its forecasts for the largest economies. The only major sectors to finish the day in the green were defense and telecom. Tomorrow morning traders will be looking at the May existing home sales report.

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Posted by: Catherine | June 17, 2009

Stock Markets Fall Again

The Dow, Nasdaq and S&P all started the day in positive territory and finished significantly lower for the second day in a row. The Dow closed at 8504.67 down 107.46 or 1.25%, the S&P had an 11 point loss down to 911.97 with a similar percentage drop, while the Nasdaq ended the day just below the 1800 level. A weaker dollar, higher treasury yields, and higher gold were some factors blamed for the drop, however most of the talk centered around a near term pull back from the recent run up in the markets. Stock market watchers as well as forex and commodity traders will be looking toward Fridays confidence numbers to help gauge the state of the economy.

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Posted by: Catherine | June 7, 2009

Good Week For The Markets

The markets finished mixed on Friday with the Dow gaining 12.89 to close at 8763.13, the S&P 500 had a 2.37 point drop to finish at 940.09 and the Nasdaq hugged the flat line and lost just 0.60 points and ended the week at 1849.42. This all capped off an excellent week for the markets with the Dow gaining close to 400 points, the Nasdaq up around 100 and the S&P trading near its highs for ’09.

The ADP report was released this week and showed job losses in the private sector of 532,000. Slightly higher than the 525,000 estimate but worse than the slight miss was a revision to April numbers of 54,000 showing an April decline of 545,000 US jobs. However, according the the nonfarm payroll numbers released on Friday the U.S. lost far fewer jobs than the expected estimate of 520,000, posting numbers of just 345,000 jobs lost last month. Unfortunetly, unemployment rose to 9.4% in May from 8.9% in April. It’s the highest unemployment rate in 25 years and above analyst estimates of 9.2%.

In GM bankruptcy news it looks like Penske Automotive Group will be taking over the Saturn brand. The purchase price is said to be between 100 and 200 million dollars and should in the near term save about 13,000 jobs and 350 dealerships. Penske Auto is not a manufacturer and will have to find a supplier for the vehicles, but does plan to keep selling Saturns with GM assembling the cars on a contract basis until the end of 2011. The specifics of the deal have not been officially released and it is far from final. This news coming directly on the heels of an agreement to see Hummer to private Chinese based Sichuan Tengzhong Heavy Industrial Machinery Co.

Posted by: Catherine | June 3, 2009

The Markets Post A Small Follow Through From Yesterday

The markets traded marginally higher all day today and finished with small gains on the three major indexes. The best news was the follow through which although small, is considered a positive sign after a big gain yesterday and steady increases over the past three days. The S & P 500 finished up 1.87 to 944.74 its highest level this year. The Dow and the Nasdaq finished up 19 and 8 points respectively, due in part to better than expected pending home sales numbers. The pending home sales index, which measures home sales where a contract has been signed but the transaction has yet to take place, rose 6.7% to 90.3 in April from 84.6 in March. It was the largest increase in more than seven years and 6.2% better than the expected. This helped home builders Toll Brothers, KB Home, Centex and Pulte Homes among others to post gains of around 3% each on the day.

The ink on the General Motors bankruptcy was still wet when they announced today that it had its strongest vehicle sales month in a year. Their deliveries of vehicles for May rose 11% or 19,000 to 191,875. This release was drowned out by the constantly growing list of creditors including Wilmington Trust, Deutsche Bank, Bank of New York Mellon and Visteon. And finally if anyone knows how to say Hummer in Chinese please leave it in the comments section below because the brand is now owned by private company Sichuan Tengzhong Heavy Industrial Machinery Co. For tomorrow many traders will be watching the ADP report which is expected to show a decline of 525,000 jobs in May.

Posted by: Catherine | June 2, 2009

Welcome To Stock Market Investing

Welcome to the Stock Market Investing Blog on wordpress.com. Here you can find frequently updated market news and commentary on economic events with a specific focus on stocks and options. I also have message boards and forums which you can discuss stocks, options, futures, commodities and the foreign exchange markets. You can also find more market news and free quotes and charts on my main site Asset Investing. Webmasters please also add your blog or website to our search engine and link directory. I hope you see some useful information that will help us all get through this financial crisis. So please follow this blog and I would love to read your comments and answer your questions.

Posted by: Catherine | June 2, 2009

Dow Up 221 Points, Recession Over?

General Motors filed for bankruptcy and stocks cheered. Ford was up on speculation they would be able to gain market share. Several GM suppliers had similar 5-10% gains apparently relieved that the inevitable bankruptcy had finally occurred. In addition GM was removed from the DOW Jones Index and replaced with Cisco Systems. Cisco was up 1 dollar a share, but more because of the Nasdaq and tech rally than the addition to the DOW. Other positive signs were the expanding manufacturing numbers and the increase in construction spending. Some positive signs in what has been at best a bottoming economy and a stagnant market over the past couple months.

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