Tag Archive: global economy

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.

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?

Unfortunately, the momentum from last week’s stock market rally did not carry over to this week. We start this week in the red after the stock market dives almost everywhere.  The dive comes after worries about Greece reemerges as people speculate that Greece will default. If they default, they will stop all payments to their lenders and stop making bond payments. It will hurt banks and it will send a shockwave throughout the Global Economy and we can most definitely look to seeing it in the US Markets.

I am hoping that this doesn’t happen because if it does, it’ll undo everything good that we have experienced last week (and perhaps more). The last thing we need right now is a country defaulting and sending stocks around the globe plummeting.

As for today, the Dow Jones dropped more than 108 points, sticking just over the 11,400 mark. The NASDAQ Composite dropped less than 10 points. You may think it’s not so bad, but it still dropped. The S&P 500 dropped almost 12 points while the NYSE dropped more than 113 points.

Today definitely was not a good day for the market, but we have seen worse. The markets were really down earlier today but the fact that it bounced back up a little shows that investors haven’t lost complete faith in Greece or the global economy. I believe that things will bounce back up. Like always, the market will fluctuate, there isn’t much that we can do, we can only try to predict but that’s harder than it sounds.

Out of the stocks hit hardest, the banking sector took a big hit today. Citigroup (C) dropped $1.28 per share or more than 4.4%. Bank of America (BAC) Dropped $0.24 or about 3.3%. JP Morgan Chase dropped more than 2.8% or $0.94 per share. The banking sector last week saw big gains and a lot of it has been undone in today’s fall. But not to worry, things will go back up as investors use this opportunity to buy low in order to sell high later in the future.

So What is Qwikster?

The Title asks the Question, what’s Qwikster?  Sounds like a service my Internet Service Provider provides that gives a speed boost. But no, it’s not that. Qwikster is Netflix’s (NFLX) new thing. Netflix earlier announced that they will be splitting up their service. Currently, you can stream movies over the internet and order DVDs by mail on the same plan. But now, you have to get them separately. If you only want DVD service, that’s when you go with Qwikster and if you want to stream your videos online, you sign up for Netflix.

Netflix Drops 7% on Monday September 19

by Yahoo! Finance

So how did this go for Netflix (NFLX) today? Not very well. The announcement sent Netflix stocks plummeting again. This time it dropped more than 7.3% or $11.44 per share today. It dropped another 1.77% or $2.55 per share in after hours trading. This drop sent Netflix dangerously close to its 52 week low of $140.02. Currently it’s price is $143.75 (not taking into account its drop after hours). This news will carry over into tomorrow and we can expect Netflix to see another drop in their stocks. They will most likely set a new 52 week low because investors are basically losing hope.

They have lost more than 50% of their market share in the past few months after announcing a change in pricing so what’s Netflix thinking?  They’ve lost about $8 billion after everything that has happened since their first announcement in July and it doesn’t look like they are done. I guess they are hoping people will adapt to their changes and come back to them in the future. I think they will get exactly what they want, but it will take some time. They have to allow people time to get  used to the changes.

Whatever happens, I still think that Netflix is a very strong stock and they will bounce back. As this stock which at one point was over $300 goes closer to $100, investors will look at this opportunity to buy low which should increase the stock prices. And as people get used to Netflix’s new prices and features and whatever Qwikster hopes to accomplish, I think they will start regaining subscribers and will still remain the top company in its field with ease.

Even if the stocks rallied today, Netflix would have gone down. And today wasn’t as bad as it could have been. I’m glad the losses were minimal and hopefully some good news comes out of Greece tomorrow. I know good news will send stocks rallying all over again and that’s exactly what we need in order to set aim for the 12,000 mark.

What are your thoughts on Netflix? What about Greece?

European Leaders Promise to Help Greece

by jscreationzs

The biggest challenge for the stock market recently has been the debt crisis in Europe, more particularly, Greece. Greece has had issues with their debt for some time but recently, they have been in real trouble. Their economy was on the verge of complete collapse and if that happened, it would have sent a shockwave through the global economy causing havoc along its entire path.

Thankfully, other European Leaders have stepped up. They have promised to help Greece with its debt situation and avoid default. This obviously was great news and this resulted in the stock market rallying all around the world. We saw huge gains here in the US Markets which makes today the third day in a row where the stock market has been positive. Best of all, the upward trend of the stock market this week has been slow and steady which makes the likeliness that it will come crashing down just as quickly far less. But of course, anything can happen. If for some reason another country in Europe or Asia declares money trouble, it’ll send a negative shockwave through the global economy again.

Today the Dow Jones gained more than 140 points finishing near 11,250. It’s getting closer to the 12,00 mark once again, and lets hope that this trend continues because we can’t afford another mini-collapse any time soon.

The NASDAQ Composite gained more than 40 points finishing at 2,572. The S&P 500 gained almost 16 points, finishing at more than 1,188. And the NYSE gained more than 89 points, just one point short of the 7,200 mark.

The good news about Greece and the help that it’s getting has helped the European markets as well. I don’t normally report European Market results because I don’t follow them, but as reported by Yahoo! Finance, the Germany’s DAX gained 3.4% and France’s CAC-40 gained almost 2%. That’s great news for Europe.

There are still two more days left for the end of the Market Week and anything can still happen. After all, the mentality of the consumers and investors can have a great deal of impact on the stock market. If we can keep believing that the economy is recovering faster than what others are saying, then we can actually help it recover faster. We need investors to invest in actual businesses rather than commodities like Gold (which by the way hasn’t broken any records since the last time I mentioned it).

Right now, I think we’re on a good path. If we can all keep it up, we’ll be on our way out of the little recession we have seen over the past few years. Lets hope for more good news in the near future!

What do you think about the help that Greece is being promised by its European Allies? Do you think that it will actually help or make things worse?

Stocks See Another Day Of Green

Enough momentum carried over from yesterday’s late day revival of the Stock Market to today. The market was in the green most of the day today, although earlier we did see them go red when worries about Europe refused to go down. Even with the green all over the place, we didn’t see very significant gains.

The Dow Jones only rose 44 points today taking it over the 11,100 mark. Even though the race to the 12,000 mark isn’t very quick, I would rather go slow and steady towards the goal rather than go up a few hundred points in a single day just to have the market plummet the next day. We have seen plenty of these situations in the past few months.

The NASDAQ Composite increased more than 37 points, finishing at just over 2,532. The S&P 500 gained almost 11 points and currently stands at 1,172. The NYSE saw the most gains today with a gain of almost 63 points, allowing it to go over the 7,100 mark. The NYSE yesterday saw a gain of only over 2 points, I guess today made up for that.

The worries over Europe’s debt crisis isn’t over. But investors and consumers are feeling a little better about the situation and they believe that things will get better.  Because the crisis isn’t over, it resulted in the choppy trading that we saw today. As I said before, the mentality of consumers and investors can play a big role.

Nothing very exciting happened today. I’m just glad that some of the momentum from yesterday was carried over to today. We also need to keep a positive outlook for the future. Our mentality can affect the stock market and the entire global economy more than we think. It may seem like a children’s story where if you believe it, it’s true, but it does work in the real world, at least dealing with the stock market.

We will have to wait and see what happens tomorrow and for the rest of the week. Will we be able to stay in the green zone tomorrow too? Or will everything bounce back to the red?