Archive for September, 2011

Today is the last day of the month and the third quarter of 2011. Unfortunately, we are not where we would like to be at this time in the economy. Overall, the third quarter wasn’t impressive at all. Compared to last quarter, the stock market is down. And over the past few months, issues in Europe, particularly in Greece, made it much harder for the economy to recover.

The Dow Jones today feel more than 240 points. We finished just over the 10,900 mark. I was hoping that we would stay over the 11,000 mark as the quarter came to an end just so we would have fewer steps to hit the 12,000 mark.

The NASDAQ Composite finished at 2,415 after a drop of more than 65 points, or 2.63%. The S&P 500 dropped 2.5% of its own, or almost 29 points, finishing off at 1,131 points. And the NYSE Saw a drop of more than 183 points, also a 2.63% drop, finishing off at 6,791 points.

The European and Asian markets also ended in the red. The Nikkei 225 stayed nearly flat.

Kodak Plummets below the $1 per share mark

from Yahoo! Finance

Gold saw a small increase from yesterday, but only an increase of $4. Current price of gold is $1,624 an ounce reaching a low of $1,609 an ounce earlier today.

Eastman Kodak Company (EK), also known as just Kodak suffered a huge loss today. Kodak has been experiencing financial trouble for some time thanks to the economy. Today, Kodak stocks dropped more than 53%, or $0.91. Current price of Kodak is just $0.78 per share. It hit a new low earlier today of $0.54 a share. I don’t think that Kodak shares have ever been this low in the many decades it has been around.

If Kodak keeps plunging, they may go bankrupt. It will definitely be a sad sight to see a company that has been around for what seems like ages, just go away. I hope that they resolve everything soon. And of course, now may be the perfect time to invest in Kodak since it has basically become a penny stock. If you do invest, be aware that it is a very risky stock at the moment.

Tomorrow is October 1, 2011, and it marks the final quarter of 2011. The Holidays are coming up and we should see increases in the stock market during the time like we usually do every year. I do hope the issues in Greece is taken care of soon because I believe it has been dragging on for far too long and it needs to come to an end.  I also hope Kodak makes it out okay and finds a decent amount of investors to get the company back on track.

What are your thoughts on the disappointing quarter that we have seen the past three months?

 

A ton has happened over the past two days in the world of business. Yesterday wasn’t a very good day for the stock market as we saw declines in almost every sector. Today was a little different. New things were announced and overall, it was a good day.

The Dow Jones Industrial Average saw a gain of more than 143 points, or 1.3% after yesterday’s decline. It didn’t fully recover but hopefully it will get there soon. Currently the Dow sits in at 11,153 points.

The NASDAQ Composite saw an opposite motion. It saw a loss of just under 11 points. It’s not a big loss so it basically remained flat from yesterday but the 11 points adds on to the losses the Nasdaq incurred yesterday. The S&P 500 gained more than 9 points and the NYSE gained almost 98 points. So far, the markets haven’t recovered from yesterday’s drop but at least we saw gains today in most areas.

Gold also saw a decrease over the past two days. Since reporting last on Tuesday, gold price has dropped $34 and it is currently priced at $1,620 an ounce. Gold is going lower and lower and I think it will keep decreasing over the coming weeks and months. It is great to see the price decrease because it shows us that investors are putting their money in other places, perhaps places that will help our economy a lot more.

But what’s with the fire in the Amazon?

 

Amazon Fire Computer Tablet

AP Photo/Mark Lennihan

Relax, there is no fire in the Amazon rain forest, but there is a fire in the Amazon (AMZN) that we all know and love around the world. Yesterday Amazon gave us some great news which makes them even more ‘investment’ worthy. They announced the release of their new computer tablet, the Amazon Kindle Fire. The picture above gives you a glimpse of the pad. From the looks of it, it looks like another tablet that will cost us $500, right? Wrong!

The surprise comes in the price. Amazon (AMZN) expects to start selling the Kindle Fire at just $199. It has a 7″ screen which is smaller than the Apple iPad but it costs less than half of what you would pay for the iPad. Speaking of the iPad, the Kindle Fire is expected to compete with the iPad and from the looks of it, it looks like it will be a great match. The Kindle Fire is small, attractive, seems to be able to do a ton of things, and best of all, it’s much cheaper than the iPad, which makes it even more appealing.

I currently don’t own any tablet PCs, but this is something that I would not mind getting for myself. If I ever get it, I promise to post a personal review on Stocksicity. And because of this new announcement, investors have another reason to invest in Amazon. The Kindle Fire is scheduled to be launched on November 15, 2011 and you can pre-order on the Amazon.com website.

Amazon has great news but your banks may not. Bank of America (BAC) is the country’s biggest bank and earlier they announced that they will charge all customers a $5 fee for using their debit cards. This is one way Bank of America (BAC) will try to increase profits as new regulations come to effect.

Bank of America isn’t the bank trying this. JP Morgan Chase (JPM) and Wells Fargo (WFC) will be testing this out too by charging $3 a month. Other regional banks are trying the same to increase profits. It most definitely will not hold great with banking customers. I don’t know about you, but I hate paying fees for my bank. It’s enough that they use my money to lend others and charge huge interest while giving me a worthless 0.05% interest for my savings account, and I definitely don’t want them to charge me extra for using my debit card.

This might come back to either haunt the banks by driving away customers or work out great for them because they could end up making millions of dollars from the customers who don’t have a problem with this. But we will have to wait and see where things go after the new fees are put into effect.

Today was a very interesting day with news coming in from many sides. The Amazon Kindle Fire looks like a great piece of technology that could have a great impact. It’s something I am very much looking forward to.

What do you think about the Amazon Kindle Fire? Will you be getting it? What are you thoughts on the new Debit Card fees your bank may impose on you?

General Stock Market Graph

by Vlado

Today was the third consecutive day the Stock market has seen gains. Today was another rally for the market as investors are hopeful that the worries in Greece will come to an end soon. The keyword there is ‘hopeful.’ Kind of scary isn’t it? Our entire global economy seems to be riding on hope.

The Greece issue has been in the news for weeks and nothing conclusive has been said besides the fact that Greece may be nearing default soon. But other than that, nothing really happened. We don’t know how the talks are going or what’s exactly happening, nothing is concluded but yet, worries have risen several times, as well as hope has risen. I don’t know about you, but I wouldn’t really count ‘hope’ or ‘worry’ to be factors in deciding how our market runs. But apparently, that’s what seems to be happening. When people are hopeful, the stock market rises, and when they are worried, everything sinks several hundred points.

The Dow Jones today was on the good side today, seeing a gain of over 146 points, falling just 10 points short of the 11,200 mark AGAIN. We have seen that mark several times and it seems every time it tries to head for the 12,000 mark, ‘worries’ about Europe increases and the stocks plummet.

The NASDAQ Composite gained just over 30 points. The S&P 500 gained just over 12 points. And the NYSE gained over a 102 points, going over the 7,000 mark once again (7,043 to be exact).

The official news for now is that Greece is close to finding a way out of its debt crisis. Hopefully it’s true. There is that word again, hope. I do hope a lot when it comes to the stock market but it’s usually always hope. I don’t sell all my stocks when I ‘feel’ that something bad is going to happen in Europe and I don’t buy mass amounts of stocks when I ‘feel’ everything will rise. Sometimes it feels as if some people are just manipulating the news to keep the markets very volatile for their own profits. But of course, proving it is another thing. For now, I am thankful that everything is on the positive end.

So what’s going on with Gold?

Gold seems to be acting a little weird. It has been going down when the stock market plummets and today it actually went up with the stock market’s rally. It is unusual but not too much. Current price of gold is $1,654. Just over $30 more than what it was yesterday. Gold was almost $1,600 an ounce today, a price we haven’t seen in some time. But I have no doubt that it will once again see that price, and go even lower. I think investors should stop investing in commodities like Gold and Silver and start investing in businesses and encourage job growth. That’s where they should see bigger returns.

Today was a good day for the Stock Market. Lets hope it keeps up for the rest of the week. We still have to bounce back to where we were early last week, we’re still a few hundred points below the level.

 

Stock Market Rebounding after last week's huge plummet

by jscreationzs

The stock market saw a horrible week last week. This week started with the stock market rebounding back with a huge rally. Almost every stock saw gains (although there were a few exceptions) after mentality about the crisis in Europe changes. Again…the mentality changed.

Investors are hopeful that the rest of Europe will be able to help Greece get out of its current state, which is almost near defaulting. Although nothing drastic has happened, the way investors and consumers are looking at this has changed. I have predicted several times that this will happen over and over. The stock market will remain very volatile as long as the issue in Greece remains unsolved one way or the other. In the meantime, the stock market will go up and down because investors will think that Greece will either Default or come out of it without a problem.

The Dow Jones saw a huge rally today with a gain of over 272 points. It has once again gone over the 11,000 mark but it’s still quite a distance from our aim of 12,000 points. I still believe that it can happen this year again. Remember, the Dow Jones almost reached 13,000 points earlier this year, that can still happen in 2011, well I’m hopeful at least.

The NASDAQ Composite gained over 33 points finishing at over 2,516 points. The S&P 500 also saw a gain of over 2.3% or 26.5 points finishing at 1,162. And the NYSE gained over 170 points finishing at 6,940. The NYSE still has to catch up and go over the 7,000 mark which it could do very soon.

The market is still very volatile. Nothing guarantees that the momentum from today will carry over to tomorrow. We may or may not see another rally. Of course, we may or may not see another plummet. We have seen situations like this several times in the past few months alone where the stock market plummeted after a rally like we saw today. Hopefully it doesn’t happen. I hope that good news, actual good news, comes out of Greece soon so that we can put this mini recession behind us and move on. We have been in this slump for longer than I want to stay in any slump.

The Gold has seen another drop since I last reported it on Friday. Currently, gold costs $1,623 an ounce. About $19 less than what it was just three days ago. Will the price of gold keep going down?

Maybe. I did say that the massive increase in gold price in a short period of time this year could have been just a bubble. Many people on TV, the internet, and in many other places would agree. The price of gold is almost $300 what it was just a few weeks ago and it has been keep going down. It even went down in last week’s massive drop in the stock market, when normally the price of gold would increase.

I think the overall price of gold will continue to drop as the year draws to an end. Gold price spiked too much in too little time and now it’s slowly deflating. It could still spike up just as quickly but hopefully it won’t because gold tends to reflect how the economy is doing and cheaper gold usually means more people are investing in other things that are helping the economy. Right now I think gold needs to drop more and things like the Employment Rate needs to increase.

What do you think will happen in the coming week to the stock market? Will the rally keep up? Or hit the ceiling and bounce back down?

Market Goes Down as Traders look on

by Vlado

The stock market for the past 3 days have been very disappointing. During the end of August and for some time in September, we though the Global Economy was recovering. I had great faith in the economy and its recovery. I was aware of all the issues in Europe regarding Greece and its Default crisis but nonetheless, I thought they would get things solved by now. But not much has happened and over the past few days, one of the biggest economic leaders, China, showed slow in its economic Growth as well. Everyone excepted at least China to do a lot better than the rest of the world but it doesn’t seem to be the case.

So are we doomed?

I don’t think we are, not yet at least. Although the global economy experienced a huge setback dropping almost 400 points yesterday (Dow Jones Industrial Average), and about 4% everywhere else, we are still hanging in. We are still in better shape than a few years ago when the Dow Jones was a few thousand points lower than it currently is now. And unlike a few years ago (2008), the plummet we experienced yesterday didn’t carry over to today. We did see gains today, but they were minimal.

The Dow Jones gained just 37 points which really isn’t anything compared to the drop it experienced on Wednesday and Thursday. The NASDAQ Composite gained just 27.5 Points. The S&P 500 gained less than 7 points. And the NYSE gained 44 points.

I know we were aiming for that 12,000 mark with the Dow but it’s currently sitting at 10,771. We were just a few hundred points away and now we’re well over a 1000 points from our goal. But I still think it can happen.

Investors are worried all over the world that things may be collapsing soon. So they are mass selling their assets in order to maximize profits or minimize losses. The stock market is very volatile now. It dropped about 500 points in two days very easily, although it didn’t bounce back today, I think it will soon because this is a great time for investors to buy low.

So why don’t I think that the economy is doomed? (Not yet at least). Because I’m looking at Gold. Generally in times of crisis like this with huge sell offs, the price of commodities like Gold and Silver tend to see massive gains but over the past few days, they have been going down. It shows us that investors aren’t putting their money in Gold which happens to be the best thing to invest in because the price always seems to be dependable. Of course they could just be selling and buying something else to store, but what?

I last reported about gold in the article I wrote after About the Stock Market After the Labor Day Weekend. It was almost three weeks ago. We would expect the price of gold to keep going up after what we have seen the stock markets do over the past week or so, but nope. I last reported the price of gold to be $1,877 an ounce. It was very expensive, near its record high of just over $1,900. But over the past few days, gold has been dropping. The Gold Bubble could be collapsing or it could be something altogether. Currently gold costs $1,642 an ounce.  That’s $235 less than what it was just three weeks ago.

So what does this mean?

It could mean a few things. First, the economy is actually recovering and investors (as well as consumers) are just overreacting. If this is the case, we can expect Greece to get out of its crisis soon and we will see rallies again.

It could also be the Federal Reserve’s plan to pump $400 billion into the economy and people are trying to invest something on that end instead of Gold. Which may be weird but I’m not complaining. Lower prices just mean I can buy my mother gold jewelry at a cheaper price.

Today ended the market week. It wasn’t a very happy ending, but at least it wasn’t sad like yesterday. Don’t lose hope. As I always say, a positive mentality can go a long way. We have seen some of it in the past when we all thought Greece was out of trouble or when we believed that President Obama’s stimulus plan was a great idea and that it would help. Nothing in reality has changed, those ideas are still there, but the mentality just changed. If we can shift it back towards the positive (the entire global economy that is), I’m sure we can turn things out.

What do you think about this week in trading? And what do you think may be going on with Gold dropping along with everything else?