The stock market has been acting like an unpredictable and dangerous rollercoaster this week. We saw huge losses on Tuesday, followed by big gains yesterday, and today the markets decided to drop again. The Dow Jones fell 105.3 points (-1.28%) and the S&P also dropped 12.74 points (-1.52%). The Nasdaq was hit also hit hard, as the index shed 41.58 points (-2.76%).
Fear and anxiety about companies’ earnings were the main catalysts for the drop in the market today. As earning reports continue to be released throughout the next few weeks, investors have a feeling that the news will not be pleasant. Microsoft (MSFT) set the gloomy tone today, as it reported an 11% drop in profit over the last quarter. The company also announced it will cut 5,000 jobs over the next 18 months. eBay (EBAY) also posted its first year-over-year quarterly loss in the company’s history.
Jobless claims also increased to 589,000 from 527,000 a week earlier, much worse than the expected 543,000. A report on home construction activity was also extremely disappointing. And, while two House committees have prepared Obama’s stimulus plan for a vote next week, it is becoming more clear that it will be harder than expected to garner enough Republican support to pass the bill.
Tomorrow, General Electric (GE) is releasing its 4th quarter earnings. GE is one of America’s biggest companies and its services are spread out across many sectors, so its earnings report will be especially important in determining the direction and state of our economy. Volatility across the overall market is increasing, as investors become more and more unsure about what the future holds for the economy and for the stock market. At this point, I don’t think anyone can make a solid prediction for what the future holds.
Until tomorrow,
Niki Pezeshki
College Trillionaire
Posts
No comments:
Post a Comment