Tag Archive: closing bell

Stock Market Lowers on Job Report

By Idea go

The government is due to release August’s Job report tomorrow. As a result, the stock market has gone down a bit as investors become wary about tomorrow’s report. Investors are predicting that the jobless rate will be up another 0.1% to 9.2% compared to July. They also believe that fewer jobs were added in August compared to July. These worries have sent the stock market to the red side today. We might actually finish in the red today if some good news doesn’t come out in the next 2 and a half hours.

But this little slump isn’t bad. The stock market is a volatile playground and it is due to go up and down from one day to another. The little drop we have seen so far today won’t undo the huge gains we have seen over the two weeks. And overall, today is a slow day for trading in the stock market.

So far, the Dow Jones Industrial Average has dropped 22 Points and the NASDAQ Composite has dropped almost 11 points. The S&P 500 has dropped just 3 points while the NYSE has dropped almost 18 points.

If the news tomorrow is worse than expected, we can assume the stocks to keep going down tomorrow. However, I don’t think it will be enough to undo any of the gains we have seen in the past 2 weeks. I am also hopeful that the report tomorrow is better than expected. If that’s the case, we can expect the stock market to rally once again and we can also expect that momentum to carry over to the beginning of next week.

The stock market did see an increase earlier today and hopefully, it will bounce back. We have had a day like this earlier this week on Tuesday. The stock market was at first down but by the closing bell, it finished in the green, even though the gain was very little compared to the rest of the week. We could see the same today because the losses so far haven’t been that great and we are very close to the borderline of the green zone. We will have to keep monitoring the stock market to see where everything lands.

All in all, not much has happened today. The slump comes from speculations of what will be released tomorrow. The only way to find out the actual job report is to listen to a report of the report or be there when the government announces it. Hopefully it’s good news, or hopefully it’s not too bad. I don’t think the news will have a huge negative effect on the markets for tomorrow or next week, but you never know.

As I predicted at the end of last week, when the stock market goes down heavily in a short period of time, it’s due to bounce back to correct itself. The Stock Market today sees a small gain, unfortunately, the gain is very small.

The Dow Jones Industrial Average increased just 37 points at the closing bell, increasing to 10,854. It is still under the 11,000 mark. It actually saw the 11,000 mark today with a day high of 11,020. When it hit the 11,000 mark earlier today, it seemed as if the market will keep rallying, but tensions in the economy, especially in the financial sector, has brought things down.

The Nasdaq Composite only gained just over 3 points today. And the S&P 500 gained just 0.28 points.

But what about Gold?

The price of Gold Rallied once again reaching almost 1,900 points at today’s high. It balanced with a gain of about 45 points for a total of $1,889 an ounce. It’s incredible how quickly Gold has risen this year. Many are claiming that it’s just a bubble and that it will burst sooner or later. The price of Gold is increasing too high, too quickly and these claims may be correct. In fact, today, Gold has seen a huge drop earlier in the day. It dropped below $1,700 and for a moment, it seemed as if it’ll keep going down. But it rallied back up just as quick.

The following graph is provided by Yahoo! Finance. This shows the huge drop in Gold price earlier today, makes the whole graph look ‘V’ shaped. I would not be surprised if the price of Gold keeps going up and eventually hits $1,900 an ounce this week. I do believe that this is a bubble and that it will burst. But I also believe that this bubble is looking strong and sturdy and it may keep growing through the coming weeks.

Price of Gold Graph

Price of Gold Graph

The banking sector isn’t really helping the economy. Bank of America (BAC) dropped almost 8% today coming near it’s 52 week low of $6.31 per share. JP Morgan Chase (JPM) dropped 0.94 points or almost 2.75% for the day. JPM reached it’s 52 week low earlier today. Citigroup (C) dropped an almost 3% as well and just like Chase, it has reached its 52 week low earlier today.

Even with the Stock Market seeing Green overall, certain companies and stocks have limited just how well the stock market has done, or should have done today.

Some stocks that have helped the stock market go into the green include Hewlett Packard (HPQ) which increased 3.6% today, after dropping 20% at the end of last week. Universal Display Corporation (PANL) rallied 24.5% today. That is a huge jump for this stock going up to $34.76. This stock has been steadily dropping over the past few weeks and have turned around today. It’s still no where near it’s 52 week high of $63.58. They’re not too far off, if they can release some more good news in the coming weeks, they should be able to rally some more.

The market today has seen its ups and downs. Some stocks have made it very hard for the overall market to rally. But today, we saw a positive score on the stock market and it was a great feeling compared to the downward movement we’ve been seeing over the past few weeks. The price of gold has rallied once again and in my opinion, it will keep going up because gold seems to be the most reliable constant in terms of value. It started the year at $1,400 and it shows no signs of stopping. But if you are looking to invest in Gold, I would advise that you very carefully think about it because if they’re right, and it is a bubble, it could burst soon because the faster a bubble grows, the quicker it explodes.