Dow under 10,000
by Peter Switzer
A good figure would create a relief rally but a shocker could cripple confidence and the market.
The Dow Jones index lost 74.25, or 0.74 per cent, to close at 9,985.81.
Economists are tipping a 1.4 per cent result for GDP growth and that is a fair way down from the first quarter reading of 2.4 per cent.
Nervous Nellies have a good reason to be anxious, however, there are a lot of long-term investing experts still insist this a buying opportunity.
My concern is that disappointing economic data has swamped the great company profits news and it is happening in the spooky stock market months of August and September, as well as October lie ahead.
“It looks like a very good time to be going bargain hunting in the stock market,” Erik Ristuben, chief investment officer at Russell Investments, told CNBC overnight. “We're seeing maybe a little bit more of a modest recovery than we thought, but we're still in positive territory.”
In the news
There was some better news last night with first-time applications for unemployment benefits falling by 31,000 last week to 473,000.
One surprise is that the price of oil has risen two days in a row, which could be a good omen. If everyone was heading for the double-dip exit doors the oil price would be falling.
Another market mover could be the Fed Chairman Ben Bernanke’s speech at Jackson Hole, however it will be the GDP numbers that will excite or de-vibe me tomorrow morning when my TV takes me to Wall Street.
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Published on: Friday, August 27, 2010blog comments powered by Disqus