Tag Archive: green zone

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.

Soon after the Stock Market opened today, it seemed as if the stocks will Rally once again for the second day in a row, and be in the green zone for the third day in a row. But over the past hour and a half, the Dow Jones have been steadily decreasing. Currently the Dow has dropped more than 38 points points after being up more than a 100 points just earlier. It almost reached 11,300 and for a moment, we expected it to surpass and keep going.

The NASDAQ Composite on the other hand, have lost more than 21 points already. The S&P 500 has dropped a little under 5 points. And the New York Stock Exchange has dropped more than 48 points.

NYSE Chart

Chart of NYSE for August 24, 2011 Provided by Scottrade

Of course, the stock market is a dynamic place. It will go up and down all day long. We can only hope that some of the momentum from yesterday carries over into later today and the stock market sees significant increases. It’s still early and anything can happen. People are still hopeful of the announcement Bernanke will be making on Friday. His announcement could very big way, whether it’s for better or for worse.

Earlier today, Moody’s Investors Service also downgraded the credit rating of Japan from Aa2 to Aa3. Standard & Poor’s and Fitch also downgraded Japan’s credit rating earlier to AA-.  The rating downgrade doesn’t seem to have a huge effect on the US Markets, positive or negative.

What seems to be affecting the stock market even more, and may be keeping the stock market from rallying for the second day in a row, is the report about the decline in Home Prices in the country once again. Bloomberg reported that prices on US Homes fell 5.9% in the second quarter this year compared to the same quarter of 2010. Foreclosure rates are still high and people are still losing their homes. This is and always will negatively affect the stocks. If the next quarter report comes in that prices on US Homes have risen, the stock market will rise with it.

Even though the stock market isn’t rallying like it did yesterday, the Price of Gold has still dropped. So far today, it has seen a big tumble of 74 points or 4%. It’s currently at $1,784 points and the gap between the current price and the previously expected $2,000 per ounce is even bigger. Just yesterday, gold set another record or more than $1,900 an ounce.

There is still almost 4 hours left until the markets close today. I think we will see more fluctuations in the market. We can only hope that the Dow Jones bounces back up and goes to the green. Gold may keep going down as investors may feel that the gold bubble is finally bursting and use the opportunity to cash out while the gold price is still high. The opposite can also happen. Since gold dropped almost a 150 points this week alone, investors may use the opportunity to purchase more gold in hopes that the price of Gold keeps going up. If the announcement on Friday doesn’t go very well, gold prices just as well may go up and keep going up. A good outlook on the announcement has provided a temporary relief over the past few days but if the stocks keep decreasing at the rate they have been today, all of that could be undone very quickly.

I’ll keep an eye on the stock market throughout the day in hopes that it comes back from the red and into the green. I also speculate that the price of gold will increase a bit as the day progresses because I believe investors will most definitely use this opportunity to buy Gold a a discounted price.

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.