Market Down Graph

By Idea go

Monday, Tuesday, and Wednesday, the stock market rallied gaining several hundred points. Today, the market took a tumble, but the good news is, we’re still above the 11,000 mark with the Dow Jones. The market will go up and down throughout the week so this drop isn’t a big surprise. The stock market rallied for 3 days in a row and a small drop is OK. Let’s just hope that the downward trend doesn’t continue over to the next few days of trading.

The Bernanke announcement is supposed to take place tomorrow. This is one of the few factors that influenced the market to go down today. It’s not a bad thing, it just means that investors are being cautious with their investments. If the news announced tomorrow is good, we can expect to see the stock market rally even higher tomorrow and the coming week. I still believe that the market is recovering, even though it has been very slow so far.

We’ll see what happens with the speech tomorrow and I will try to post an update on the speech when I can. But now, let’s get to the numbers of the stock market for today.

The Dow Jones Industrial Average fell more than 171 points finishing off at 11,149. We’re still past the 11,000 mark and I believe that we can stay here for some time.

The NASDAQ Composite also dropped almost 2% or 48 points finishing at 2,419. The S&P 500 fell 18 points or just over 1.5% finishing at 1,159. And the New York Stock Exchange (NYSE) fell 123 points finishing at 7,149 for the day.

Not everything fell. The banking sector saw gains after Warren Buffet announced earlier that he will be lending Bank of America (BAC) $5 billion (from Berkshire Hathaway). As a result, some banks saw significant increases. These small increases also kept the overall stock market from dropping even lower than it has so far today. Bank of America (BAC) gained more than 9% in value today finishing at $7.65 per share. Citigroup (C) also shared benefits with an increase of 4.85% with an extra rise so far in after hours trading putting the stock just a few cents short of the $30 mark.

As mentioned yesterday, Apple stocks dropped after Steve Jobs announced his retirement. As predicted, the downward momentum of Apple carried onto today and the stock fell another $2.46, finishing at $373.45. It’s not over for Apple. As investors become more familiar with Tim Cook, I believe that Apple will bounce back. In fact, a lot of investors are saying that Apple stocks are on the ‘bullish’ side, which is very good.

I’ve mentioned Universal Display Corporation (PANL) a few times this week as I have been keeping my eye on it. And as also predicted for this stock, it has been going up and up. Today it increased more than 15% finishing off at $46.73. It’s even closer to it’s 52 week high of over $63. I don’t own any shares of Universal Display Corporation, but I wish that I did have the money to invest while it was a little lower just at the beginning of this week. I believe that the momentum will continue as investors put more money into the company and stock value rises. Eventually it may balance out as investors try to sell the stock high after buying it low.

So what’s happening to the price of gold?

Gold prices have been dropping all week long due to the rallying the stock market has been doing. But today, it saw an increase. Earlier today, Gold price was actually down. Around the same time yesterday, I reported that the price of gold was down to $1,758 an ounce. Right now, the price of gold is at $1,769. It gained roughly $11 from yesterday. This shows that some investors have been using the decrease of value of gold over the past few days to put more money into this gold bubble because they believe the price will go up. They may not be wrong, and if they are right, they could be in for big profits.

If the announcement by Bernanke tomorrow is good and it gives the American public hope for a better future, then we can expect the price of Gold go to down even more, and the investors who invested at $1,758 may regret it. But if the opposite happens, they could be very happy investors.

 

Today wasn’t the best day of the week for the stock market. But we still have one more market day to go and hopefully the stock market pulls back. I am hopeful that what Bernanke has to say in tomorrow’s announcement is positive and let’s hope that it’s the case. I don’t think America can afford to go down in another recession.

Nazmus

Loves creating websites and helping others. Some websites include, EasyProgramming.net, Nazmus.com, and Gamers-Forum.com.

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