Tag Archive: labor day weekend

Stocks Rally Right Before Obama's Stimulus Announcement

by Idea go

As I said yesterday, whenever the stock market goes up in one direction just a little too much, it’ll balance itself out by going the other direction. For almost 2 weeks, we saw the stock market rally and get very close to the 12,000 mark. And just as quickly, it went back down below the 11,000 mark for a short time. And for the past 3 days, the stock market plummeted several hundred points, basically undoing what the 2 week rally did for us. But today, comes the re-balancing once again.

The stock market has so far seen huge gains today all around. About a 2% increase in the major Indexes, this comes after a 3 day plummet that carried over the Labor Day Weekend.

The Dow Jones Industrial Average so far has seen an increase of more than 220 points and is now sitting at 11,361. That’s a perfect 2% increase from yesterday where it suffered a significant loss.

The NASDAQ Composite is currently at 2,535 after a gain of more than 61 points, almost 2.5%. The S&P 500 so far has risen 27 points, or more than 2.3% and is closing in on the 1,200 mark once again. And the New York Stock Exchange (NYSE) has seen an increase of more than 168 points and it’s currently value is 7,316.

All of this comes after President Barack Obama announces that he will propose a new stimulus to create jobs. This job-creation package is contain more than $300 billion in tax cuts and government spending as reported by the Wall St. Cheat Sheet. This announcement has allowed the stock market to rally like it has today. And unless something drastic happens, we can expect the stock market to stay in the green for the rest of the day.

The proposal is due to come out tomorrow, we will have to see exactly what the proposal entails and determine whether it’s a good idea or bad idea for the economy. Why would it be a bad idea? Well, this wouldn’t be the first stimulus the government has given out in the past few years. The other stimuli were supposed to help stimulate the economy and encourage consumers to spend. They were supposed to take us out of the mini-depressions that we keep experiencing. This stimulus plans to do the same but I am not sure how successful it will actually be.

The economy however, sees the stimulus as good news, thus triggering a rally for the stock market. The stock market may rally tomorrow as well as Friday because of this announcement. This will give investors hope that consumers will start spending again and the economic recovery will speed up. The stimulus isn’t set to come until 2012, so the spike we will experience may be temporary, but it will be a spike nonetheless. If the stock market goes up too much in a short period of time, we can see it balancing itself out again in the near future, like it has done today.

Well President Obama, I hope that the stimulus idea will help the economy. You don’t have much time left to prove that you deserve to be reelected for a second term, and if this works out well, I am sure you won’t have much of a problem for November 2012.

My readers, what do you think about the Stimulus proposal? Do you think it’s a good or bad idea?

Stock Market Continues to Drop

by jscreationzs

As we feared, the downward momentum from the end of last week has continued into this week. Today is the third market day in a row the stock market has been in the red. The market has seen huge drops earlier, with the Dow falling about 4%. But as the markets closed, the losses were minimized and current prices of the four major exchanges are reported below. What has made the downfall even worse is the bad news that has come in from Europe. Investors have doubts about the economies of Italy and Greece.

The Dow Jones Industrial Average fell below the 11,000 mark once again, for the first time in the past 2 weeks or so. Currently it is standing at around 11,139 with a drop of more than 100 points or 0.9%. This definitely is a setback from the huge gains we have seen before the market started its downward spiral last Thursday.

The NASDAQ Composite fell about 6.5 points today and stands at 2,473. The S&P 500 has dropped more than 8 points and is standing at 1,165. And the New York Stock Exchange fell more than 102 points or an almost 1.4% drop and is sitting at just over 7,148.

The market week definitely had a bad start and the weather in the North East doesn’t make it seem any better. At least at the end of last week, the blue skies and outside activities gave people a reason to be out and shop, but today, businesses will suffer on both ends, from the stock market and the consumers being held inside due to pouring rain.

The price of Gold hasn’t changed much since I last reported on Friday. The price of gold is currently $1,877.30, just under a $1 less than what it was on Friday. However, at one point today, the price of gold was well over $1,900 nearing its record. It dropped a little because investors found the opportunity to sell near its highest point. But if the economy in Europe, and in the United States, continue to bring bad news, we can see gold prices remain at its current high price or even go higher.

All of this comes after a long Labor Day Weekend. The bad start seems like what we saw at the start of August. But I am not too worried. These things happen and they will continue to happen. As I mentioned plenty of times, the stock market tends to balance itself out after a point. It rallied for almost two weeks and now it is just balancing itself out again. We just have to hope for the balance to increase in its average price and I believe it will happen sooner rather than later.

The bad news about the job data came in on Friday and I believe that the job report for September 2011 will be better. I also don’t think that we will have to wait for October to get some relief from the stock market’s downward spiral, because the market will balance itself out again and rally again even if it’s for a short time.

All we can do now is hope that the future is better for all of our sake. The stock market is volatile now and as always, this could be the perfect time to invest. And as always, be sure to do your own research because the more volatility that exists, the more risk you’re taking with your money.