Tag Archive: new york stock

This is a followup post of the article from earlier today titled “Market Falls as Reports Come in of Lower Home Prices.”

Earlier today, it seemed that the momentum from yesterday would not carry over, that the rallying of the stock market was over. But today, it showed us that the stock market isn’t done. After my last article here, the Dow Jones rallied and finished with a gain of almost a 144 points totaling to 11,320. It’s getting closer and closer to the 12,000 mark, a mark we haven’t seen for some time.

The NASDAQ Composite increased just under 22 points, finishing at 2,467. The S&P 500 finished with a gain of 15 points at 1,177. And the New York Stock Exchange finished at 7,273 with a gain of 63 points.

Steep Gold Price Drop

Gold Price Drop by Yahoo! Finance

While the stock market rallied, the price of gold kept on dropping. Currently the price of gold is roughly $1,758, dropping an additional $26 from our last report here on Stocksicity. To the left you see a graph that shows you just how steep the drop has been for gold. And if the stock market’s momentum carries on to tomorrow once again, we could see the price of Gold keep dropping as investors start putting their money in stocks rather than Gold. As always, some investors could use this as an opportunity to buy gold for a discount compared to earlier this week. If I had the money to purchase large sums of gold, I personally wouldn’t. I believe that this is a bubble and once the market gets better (and I believe it will soon enough), the price of Gold will keep dropping and eventually get to a level we haven’t seen for several years.

The banking sector did pretty well today. Citigroup (C) showed an increase of more than 4% which Bank of America Corporation (BAC) saw a rise of almost 11%. JP Morgan Chase (JPM) saw an increase of just over 3%.

Apple’s stock originally rose $2.58 during the trading day. However, after the market closed, it was announced that CEO Steve Jobs has resigned from his post at Apple. He left his post to Chief Operating Officer Tim Cook. As a result of the news, Apple stocks plummeted more than 5%, or almost $20 per share,  in after hours trading. The news should sink in over night and the value of Apple should go back up to balance itself out over the next few days. But this requires Tim Cook to make a good presence at Apple. He has to show everyone that he is the right person for the job. I have no doubt that he is the right person for the job. For Apple’s sake, let’s hope that he can fill the shoes of Steve Jobs.

I am glad the market turned around in the afternoon. I would have hated to see the stock market do so well earlier in the week just to go through a steep drop the next day. I also hope that the stock market’s momentum carries onto tomorrow and the stocks rally again. We are still hopeful for what Bernanke has to say in his announcement on Friday. If it’s a good one, I think we’ll be seeing more greens in the stock market next week as well.

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.

Online Stock Brokers

Years ago, to make a trade, you either had to call your stock broker, who was an actual person, and ask him or her to buy a stock for you. The process could take several minutes from the time of the call to the actual purchase and the actual stock price may have changed. The other way is to be on the floor at the New York Stock Exchange and make a purchase there. Either way, it wasn’t very convenient for people like you and me who have other things to do and other places to be. Thanks to the technological revolution we have been experiencing in recent history, trading stocks has never been easier. Thanks to Online Stock Brokers, you and I can trade from the comfort of our own home and without relying on a third party human to make the trades for us.

There are many online stock brokers now. They all have their advantages and disadvantages over one another, but they all make trading much easier and in most cases, cheaper.

Commissions paid to online stock brokers are far less than what you would have to pay an actual person to trade for you. Most online stock brokers also provide traders with various tools that allow you to deeply research into companies you may be interested in investing with. These tools include watch lists, research sections, as well as individual reports of companies by various analysts that you would normally not find on the internet.

Watch lists allow you to keep track of various stocks without actually purchasing them. Some brokers have special features with their watch lists such as notifications and the ability to export the information to a spreadsheet like Microsoft Excel.

Watch List notifications are very handy tools because you may not have the time you need to keep an eye on the stock all day long. You may want to set up a notification that notifies you when the stock has reached a certain price so that you can purchase it. Notifications in most cases can be set up to receive emails and text messages to your cell phone.

Most of these online stock brokers also come with live streaming quotes. These streams are updated live and allow you to buy and sell stocks in seconds. These quotes are much more reliable than the quotes you get from places like Yahoo Finance or MSN Money. In my opinion, this is the best tool any online stock broker can provide because it is all real-time so you won’t miss your opportunity to purchase or sell shares the price you want.

Another handy advantage of an online stock broker is the ability to set your own orders. There are different orders such as limit, stop, and stop limit orders. These orders allow you to place certain parameters for your future orders. For example, if you own 10 shares of Citigroup  and would like to sell them when the price of the stock reaches $30, you can set up a stop order or to sell at $30. The system will then automatically sell your shares whenever the value of Citigroup reaches $30. This is a great way to maximize profits or or minimize losses.

I’ve told you quite a bit about what online stock brokers offer, so you may be asking, what are some good online stock brokers.

I personally use Scottrade. I have been using their system for almost two years and I don’t regret it. Their trade price is $7 per trade. This means that I pay $7 in commission whenever I sell or buy a stock. They provide great tools including an awesome streaming quotes software. I generally have it running on the side of my monitor or in the background where I monitor stocks that I own and stocks that I am keeping my eye on for the future. If you’d like to try Scottrade, you can actually get 3 free trades by signing up with my referral number, VXPP8981. You can also click the following link to be forwarded to the sign up page: Click to Sign up with Scottrade.

You will get 3 free trades worth $21, and I will get 3 free trades. It’s a great way to get started and make your first purchase. They do require a $500 minimum deposit so make sure you’re ready when you do sign up!

Another great stock broker is E-Trade. You may have seen commercials on it with the talking baby, I guess the message they are throwing out there is that it’s so easy that a baby could do it. I have an account with E-Trade, however, I never actually put any funds in there. Their regular trades cost $9.99 per trade but they lower it to $7.99 if you make more than 150 trades per quarter. I am not a heavy investor, I only have a few trades a year.

E-Trade is also running a promotion where you get a $500 sign up bonus if you start an account with $2,000. This is also a great way to get started. But remember, you may have to pay interest taxes on the $500! You can sign up at E-Trade.com.

Another broker that has been making a breakthrough into the market over the past few years is Think Or Swim. They are currently owned by TD Ameritrade so their promotions and prices have been combined. They offer a flat $9.99 per trade  and now, if you open with $2,000 or more, they give you free trades for 30 days. If you make 20 trades your first month, you’ll be saving about $200. That’s a great way to start as well.

Another option you have is actually called Options House. They have been around for a while and they offer some of the lowest commission rates I have seen. They have a flat commission of $3.95 per trade. I have actually thought about moving here from Scottrade or even just opening a second broker account with them and conduct all of my future trades here. They require a minimum deposit of $1,000 to open a cash account. They are currently running a new promotion where you can get a 100 commission free trades, value of almost $400, if you open an account with a deposit of $3,000 and use the coupon code FREE100 when signing up.

Scottrade, E-Trade, Think or Swim, TD Ameritrade, and Options House are just five out of the many other options that you have when you have to choose an online stock broker. Other brokers include names like Schwab, TradeMonster, and OptionsXpress. They all have their advantages and disadvantages over one another. This articles serves to provide you with general information regarding online stock brokers.

The internet makes it easier for all of us to invest. But don’t allow companies to take advantage of you. Always do your own research and speak to representatives from stock broker companies that interest you before making an informed decision. In the future, I hope to provide you with more in depth reviews of some of these stock broker companies to help you with your research in finding the perfect stock broker for your needs.

Happy Investing!