Stock Market Update -Aug 31st

More see-saw action in the market this week, closing at a net loss for the week. Better than expected second quarter GDP boosted the market mid-week. Dell reported earnings after the close on Thursday and saw its price fall about $4 from the previous day's high, helping to bring the market back down. Also concerns about tropical storm Gustav (now a hurricane) heading to the Gulf, helped fuel a sell-off on Friday. Another bank shutdown was announced on Friday.



Next week the market is closed on Monday. Hurricane Gustav could impact the market as we see a reaction in Oil and Natural Gas prices. Another potentially market moving event is the Jobs report due on Friday.

Market watchers point to September as a traditionally weak month, so we could see some more selling in the coming weeks. Also be careful with Gold equities -many have jumped on the recent rally, but note that there is really no volume behind the rally!

How bad is September for the stock market
Payrolls expected to fall in August
Agency’s Head Expects Banking’s Crisis to Worsen
FDIC Says At-Risk Banks at 5-Year High
Home prices drop by a record amount
Survey: South Florida home prices fell 28%

Oil companies shutting down Gulf operations
Gustav eases to Cat 3, is expected to strengthen
Gold ends lower, posts biggest monthly loss in 25 years
Tap in to gold's yearly cycle
We'll be Worse Off Whoever's President: Jim Rogers
(UK) Economy at 60-year low, says Darling. And it will get worse
Lehman Brothers is still standing, but its foundations look shakier every day
Equities: Nightmare on Wall Street?

The world’s most powerful women

Stock Market Update -Aug 24th

We saw some strength in the market on Friday, though with weak volume, which indicates a weak rally. There are still concerns about Fannie and Freddie (experts say they are technically bankrupt -see chart below). Also concerns about Lehman Brothers’, some of the banks, and the overall credit markets. Federal regulators shut down another bank this week.

Oil pulled back sharply on Friday, the US Dollar pulled back a bit from the recent rally, and Gold started a small rally after falling below $800. Interesting to note that the US Mint has run out of the Gold Eagle 1oz coins!


Next week we close out August and the slow summer trading period. The market is still in a small up-trend, though a weak one, so be careful. We may see some new developments on the Fannie and Freddie situation next week.

On another note, food commodity prices have recently started to rise again.

A Double Dose of Bad Economic News
Bernanke: Financial crisis taking toll on economy
The Final Fate of Fannie and Freddie
The Endgame Nears For Fannie and Freddie
Lehman Could Be Taken Over Soon: Analyst Bove
Ten Financial Entities On The Brink
Billionaires say US debts need attention

U.S. Mint runs out of 1-ounce gold coins as demand jumps
Have commodities hit bottom?
Report: One trader held 11 pct of Nymex contracts (Crude Oil)
UK Economy Grinds to Standstill in Second Quarter
Japanese Banks Halt Lending as Bounced Checks Rise to Record
Stocks and Indexes mentioned in this blog are for educational and illustration purposes only.

In other news...
Google founders make $2 billion each in an hour

Stock Market Update -Aug 17th

The market was up a bit this week, while the US Dollar continued its strong rally fueled by weakness in the Eurozone economy. Gold fell to just under $800, in spite of signs of higher inflation from the CPI report. Foreclosures also continue to rise. Wachovia bank said it would cut 600 more jobs, bringing the total to over 11,000.



Next week we get earnings from Hewlett Packard, Home Depot, and a few more retailers.
September Crude Oil futures also expire next week. The equity market may well continue its recent up-trend.

Europe Facing Much Slower Growth
Consumer prices rise at double expected rate
Japan Economy Shrinks 2.4%, Signaling Recession Looms
Dow off 140 as big banks slump
Morgan Stanley to repurchase troubled securities
2 Banks Will Buy Back $17 Billion in Securities
UBS carves up bank structure as rich clients flee
One Third of New Owners Owe More Than House Is Worth
Gold plunges to 8-month low as investors jump ship
Stocks and Indexes mentioned in this blog are for educational and illustration purposes only.

Stock Market Update -August 10th

The recent up-trend in the market continues, fueled by even lower oil and commodity prices, and a surging US Dollar. Note that both the stock market and the US Dollar seem to have bottomed on July 15th when the financial stocks also hit a bottom in prices.



Next week we get earnings from Walmart and a number of other retailers; earnings season is just about over with more than 80% of the S&P 500 companies having already reported. Also we get the CPI report (Consumer Price Index) on Thursday morning. The recent up-trend in the market could continue for a while, but as always be cautious -we are still in a bear market.

Take a look at a couple of nice charts in the middle of this bear market: MCD (McDonalds), JNJ (Johnson & Johnson), GIS (General Mills), and TJX (T.J. Maxx) are all hitting all time highs!

Stocks end the week with a bang
Oil sinks on stronger dollar to $115 a barrel
Fannie Shares Tumble as Home Loan Defaults Rise
Freddie Mac’s Big Loss Dims Hopes of Turnaround
UBS Settles Fraud Claims for $19.4 Billion
Citigroup returning billions to investors
Bank of America subpoenaed over sale of securities
$1 trillion in losses? Bank on more
Stocks and Indexes mentioned in this blog are for educational and illustration purposes only.

In other news...
Toilets Delay Boeing (BA) Planes

Stock Market Update -Aug 3rd

We basically closed the week near where we started. We got a boost from some of the financial companies, but GM's massive loss of $15 billion, along with another bad unemployment number helped to put a damper on things. Another bank was shut down as well. Oil held up this week, while Gold continues to slide, and the US Dollar continues it's recent up-trend.


Next week we have another Fed meeting on Tuesday. Fannie and Freddie also report earnings, along with AIG, Cisco, and others. Market direction is uncertain at this point, but at least we have stopped going down for now.

News stories:
Happy Birthday, Credit Crisis
NY to file fraud charges against Citigroup
Merrill to raise $8.5 bln selling new stock
Lehman in Talks to Sell Soured Debt to BlackRock
Four big banks to kick-start covered bond market
Hank Paulson's Fannie Gamble
Analysis: Is 22 cents on the dollar now the going rate for subprime assets?

U.S. Economy: Jobless Rate Rises to Four-Year High
California slashes pay of 200,000 state workers amid budget crisis
Debt Ceiling: Up $800bn to $10.615tn
Bennigan's, Steak & Ale file for bankruptcy
Starbucks (SBUX) Has First Quarterly Loss In Its History
UPDATE: GM Loses $15.5 Billion As Sales Plunge, Charges Mount
Exxon posts biggest quarterly profit ever
Stocks and Indexes mentioned in this blog are for educational and illustration purposes only.