Tag Archive: federal reserve

Stock Market Remains Flat

by worradmu

Wall St showed gains early in the trading day but everything flattened down by the end. Investors are waiting to get news from the Federal Reserve to see if they will provide an economic stimulus to aid in the recovery process. Investors are also waiting to hear back from Greece and the talks they have been having in order to avoid a default. Investors want to see progress on all sides before making hasty decisions about investing. As a result of this, the stock market didn’t see massive gains or massive losses.

The Dow Jones was the only one from the major indexes in the US Market not to have gone down, however they only gained less than 8 points, which is basically close to nothing. They are still over the 11,400 mark but not by much.

The NASDAQ Composite lost just over 22.5 points while the S&P 500 lost only 2 points. The NYSE lost over 17 points.

Although the stock markets showed early signs of life, early signs of what could have been a big rally, it was quickly stopped by the time the market session came to an end. Most stocks showed no change however Netflix is another story.

Netflix (NFLX) dropped another 9.5% today, or $13.72 per share. As predicted yesterday, Netflix has continued to drop. The negative momentum from yesterday after their news regarding Qwikster carried over to today and it has cost them even more money. Netflix has reached a new 52 week low hitting $129.37 earlier today. Currently the stock sits in at $130.03 per share. Netflix shares have dropped about 55% since their original announcement of price increase for their product back in July. That’s a huge drop for any company and I was actually surprised to hear their new announcement yesterday regarding Qwikster.

So will Netflix stocks bounce back up? Or will Netflix stocks keep dropping?

I think for now, the downward momentum is still strong for them. Since it dropped almost 10% today, it may continue over to tomorrow (or for another few days). But remember, Investors love to buy low and they could use this opportunity to invest in a company that dropped in price by more than half because Netflix still has potential to go back above the $300 mark with ease.

Anything can happen. Today was very uneventful in terms of the stock market as a whole. Nothing was too crazy and everything was pretty flat. If good news comes out tomorrow, we can most definitely expect a rally but if bad news comes out, like Greece failing progress about their default, we could very well be on our way into another recession. But for now let’s think positive.

Yesterday wasn’t a very good day for the stock market. Stocks were rising early but after Federal Reserve Chairman Ben Bernanke’s announcement which consisted of very little detail as to what the central bank will do regarding the slow economy sent the stock markets plummeting.

Last night, President Barack Obama proposed his new Stimulus plan which would put $447 billion into the economy in the form of  income tax cuts and new government spending. And today, the stock market drops hundreds of points undoing all the positive we have seen at the end of August and at some parts of September.

This all comes after more bad news coming from Europe, such as a rumor going around about a Greek default as well as a resignation of a European Central Bank official. This takes confidence away from investors all around the world which resulted in the horrible trading day that we are experiencing. The news about Greece actually overpowered what President Obama proposed last night. The stock market should have gone up because the proposal was a step towards pushing the economy to recover faster, but the bad news from Greece made the President’s announcement last night almost insignificant. The proposal was supposed to have put confidence back into investors but instead, it was taken away.

Stocks Dive after news from Greece comes in

By Yahoo! Finance

The Dow Jones today dropped more than 300 points so far, or a 2.75% drop from yesterday. It is currently under the 11,000 mark and if the decline keeps up, we will finish below the 11,000 mark for the first time in weeks. The graph on the right provided by Yahoo! Finance shows the huge decline the Dow has seen so far today.

The NASDAQ Composite dropped more than 60 points or more than 2.5% from yesterday. The  S&P 500 dropped more than 30 points or 2.6% from yesterday. And the NYSE dropped more than 200 points or almost 3% from  yesterday. All of the indexes have seen big drops today, adding onto the negatives we saw all week long (except for Wednesday).

President Barack Obama’s proposal is supposed to get the economy rolling again, but will it be passed? Remember that this has to be approved by Congress and right now, Congress is controlled by the Republicans and they can very well shut down Obama’s stimulus proposal for various reasons.

One of the reasons for the rejection could be the government is spending all over again when they don’t have any money to spare. The $447 billion could be used in other ways, tax cuts may not be the best way to do it. The government is already in trouble with money and more spending could be a huge setback for the country even if it’s to stimulate the economy. We have seen stimulus packages comes out in recent history which were meant to stimulate the economy but they haven’t worked. Some have actually hurt our economy. Some reporters have mentioned that Obama’s proposal had nothing to do with the decline today, but it may have everything to do with it because of past failures.

Another reason for the rejection could be the Republicans just showing their power in congress. They have control and maybe they want to use it. Even though they all want to help out the country, they are still politicians and politicians will always try to outdo other politicians, and this isn’t party specific.

Whatever happens, we very much need the economy to bounce back. And it looks like the first full week of September will end in the negatives. But we still have time! We will have to see where this Stimulus proposal goes and hope that everything works out for the best. I know the economy will bounce back, it’s just happening later than I expected.

What do you guys think has to do with the decline today? Was it Obama’s proposal? Or was it Greece?

The Increase in the Stock Market

By jscreationzs

After the Market Tumbled After 3 Days of Rallying yesterday, we saw a great positive sign today. As we had all hoped, Federal Reserve Chairman Ben Bernanke made a positive announcement today saying that he predicts US Growth in the coming future. He said that the US Economy is on the right track for a long term economic growth and I hope he is right. It’s about time the US economy bounces back from the recession we have been seeing lately. Just this past month alone made the markets almost unbearable.

Bernanke hasn’t mentioned anything about any plans the Fed may take to boost further the US Economy. It may be because he believes that the economy does not need any more catalysts in the mix. If the economy grows in the future on it’s own, then that’s the best thing any investor can hope for. Bernanke admitted that the recovery has been slower than expected but he also said that it is happening and any growth is better than no growth at all.

As a result of the announcement, the stock market has been rallying so far. Currently the Dow Jones Industrial Average is up more than a 140 points and the NASDAQ Composite up more than 56 points already. The S&P 500 is up more than 17 points and the New York Stock Exchange (NYSE) up more than 92 points so far.

I think this announcement will keep the markets on a positive side for the rest of the day. The announcement has put hope back into the minds of investors after the sell offs that occurred yesterday after some worries of the announcement. I believe that the momentum will carry over to the markets next week and we will get ever so much closer to the 12,000 mark in the Dow Jones, a mark we haven’t seen all month.

Even though the stock market has been rallying today, the Price of gold has increased as well. Yesterday I reported that the price of gold was at $1,769 an ounce. So far today it has seen some gains. Currently gold is at $1,781, about $12 more than what it was yesterday. It seems as if the price of gold has almost stabilized around this point. It hasn’t been as Volatile  as it has been over the weeks prior to the market’s rallies of this week. If the markets keep rallying next week, I believe that gold will go down. It may not go down to the level it was at the beginning of this year that quickly, but it will go down. We expected gold to get past the $2,000 an ounce mark but the markets have kept it at bay. The $2,000 mark isn’t very impossible. All we”ll need is another incident in the global economy and I’m sure we’ll see gold sky rocket again.

But for now, the markets are doing very well, and gold price is steady. Certain stocks have been doing great as well. Apple Inc. (AAPL) has been going down for the past few days, but today, Apple stocks have risen more than 2%, or just over $8. It is a result of the Bernanke announcement as well as investors getting used to the fact that Steve Jobs is gone and Tim Cook is in charge.

There are still more than 3 hours left until the markets close for the day (unless you’re gold), so anything can happen. I believe we will stay in the “rally” zone and hopefully by the end of the day, we will see bigger gains.

Today was a very good day for the overall Stock Market. Stock prices rallied all day staying in the green zone from the start. The Dow Jones, Nasdaq Composite, and the S&P 500 saw huge gains in their stocks, hopefully signaling a positive and brighter future.

Dow Jones Rallying Graph

Dow Jones Graph August 23,2011 - Yahoo! Finance

The Dow Jones Industrial Average gained more than 322 points, finishing at over 11,176 points. It saw an almost 3% gain and for the Dow, 3% gain is huge. The market day actually ended with the Dow Jones finishing at it’s day’s high.

The NASDAQ Composite gained more than 4.25% and finished at 2,446 points. Just like the Dow Jones, Nasdaq finished at its highest point of the day. The S&P 500 gained almost 3.5% finishing at 1,162 points for the day. And again, the S&P 500 finishes at its highest point of the day.

Stocks have gone up for the second day in a row, and it’s giving investors hope that what we’ve gone through over the past few weeks of constant losses is over.

So what caused the stocks to rally so much today and should we worry?

The Federal Reserve Chairman Ben Bernanke is supposed to make an announcement later this week. Most investors are hopeful that it will be good news which will result in the stock market rallying even more in the near future. He may announce a new plan to help the struggling US Economy come out of the turmoil we have been seeing over the past few weeks.

We are all hoping that the news is good, but no one is really sure what he will say. Almost everything is a speculation and so far it’s working out great for investors and the stock market. We may see a similar updraft for the next few days until the announcement by Bernanke. Assuming the news is good, the stock market should see an even more increase over the few days following the announcement. We may actually have a chance to reach the 12,000 mark at the Dow Jones soon.

The market was lowering right after the earthquake hit earlier today at around 1:55PM EST. It’s epicenter was around Virginia but it was felt all over the East Coast, including here in New York City. I was actually getting part of this post ready when the earthquake started to shake my room. Before the earthquake, I was seeing the Dow Jones slowly go up over the 200 point mark. After the earthquake, it tumbled just below an overall increase of 150. But I’m glad the quake didn’t affect the market in a negative way. I’m also glad that the stock market rallied and the Dow Jones went over an increase of 300 points despite the different fears that may have gone through the minds of the general public.

What was negatively affected today, was the price of Gold. It wasn’t because of the earthquake, but because the economy was looking better today. The price of Gold actually surpassed the $1,900 mark earlier today, setting yet another record. But the price of gold didn’t stay up there. Today it took a tumble and fell away from its record of $1,909. The price of gold went down more than 62 points, finishing just under $1,826 an ounce.

If the stock market keeps going up over the next few days, I believe that we will continue to see the price of gold drop which could be a sign that the gold bubble is slowly bursting. On the other hand, since the price of gold has dropped more than 3% today, investors of Gold may actually see this as an opportunity to invest more in gold due to the slight discount they’ll be getting compared to the price it was over the past few market days.

Whatever happens with the stock market, gold will still remain very expensive. It’s still over $400 more than what it was when the year started.

Yesterday I mentioned a stock called Universal Display Corporation (PANL) and I pointed out it’s huge gain. Today, it saw another huge gain and rose almost 17%. It’s past the $40 mark and closing in on it’s 52 week high of over $63. Rentrak Corporation (RENT) also rallied today by showing a gain of almost 24% increasing the gap between it’s current stock price and its 52 week low. A stock from the technology sector called GT Advanced Technology (GTAT) Inc also saw a huge gain of more than 13.5% finishing at $11.46 today.

The three above companies are just a few examples of why the stock market is doing so well. Huge increases in stocks like these have been having a big impact on how the stock market has been doing over the past few days. I don’t own any shares in any of the companies mentioned but I do hope that it keeps up because I always like seeing companies do well whether I’m making any money or not.

Well, today was a great day for the stock market. All sectors have seen gains and the overall market closed with a big win today. Let’s hope that the gains continue over to the next few days and let’s hope that the coming announcement is a great one because we really need a break when it comes to our economy.