After two straight sessions closing above 10,000, the Dow Jones industrial average fell 67 points, or 0.7 percent, to close under the level that has long been a psychological milestone for investors. The first part of the week had been very positive for investors, but General Electric and Bank of America’s disappointing quarterly results were enough to keep investors at bay.
The S&P 500 index fell 9 points, or 0.8 percent, while the Nasdaq composite fell 16 points, or 0.8 percent, signaling a disappointing end to a promising week, one that saw stocks rise to year-high levels, and then some.
Analysts say …read more

As earnings season continues, questions about the economy naturally arise. So far, third quarter earnings have been quite encouraging. And today, the good news continued. JP Morgan reported spectacular third quarter earnings, and that is providing hope that the rest of the financial sector will follow suit. The news has prompted the U.S. stock market to head quite a bit higher, fueling hopes that the Dow will hit 10,000 sometime before the week ends.
But is all of this earnings goodness actually indicative of a better economy? The answer might be no. This is because part of the reason that profits …read more

Have the Super Bowl winners and women’s hemlines predicted the stock market’s performance correctly this year? Let’s check up on some popular market anomalies and see how they have turned out so far in 2009.
The Super Bowl Indicator – Correct. The year isn’t over yet, but so far the rule looks good. But, it would look equally as good if the Cardinals had beat the Steelers. Both Super Bowl competitors were old NFL teams. In fact, all four playoff teams were old NFL teams. As the rule goes, a victory from an old NFL team is supposed to indicate a …read more

Many companies are starting to feel a little more optimistic today. And it’s little surprise. The stock market is rallying as reasonably good economic news filters in. First of all, Alcoa earnings offered a pleasant surprise for investors. Expected to report yet another quarter of losses, Alcoa instead turned out a good profit report. The materials company is expected to have benefited from the demand associated with Cash for Clunkers.
Other good news included better than expected retail sales data. Same store retail sales were stronger than expected in September, and that has provided some hope for the holiday season. While …read more

On Friday, the Labor Department will release its jobs report. While many economists view the possibility as unlikely, there’s a chance that the unemployment rate could top 10%.
Last month, the unemployment rate was 9.7%. Most experts believe that this month’s percentage will be about 9.8%. However, some experts believe this is the month that unemployment reaches double figures.
Even if this isn’t the month the jobless rate hits 10%, experts agree that it is only a matter of time. In fact, the peak of unemployment isn’t expected for another six months to a year.
While the recession has technically ended, the unemployed …read more

One of the things that happens during a recession is that companies start hoarding cash. Preserving capital becomes important as cash inflows slow on reduced consumer spending. As a result, during a recession, merger and acquisition activity decreases. However, now that there are signs that the economy is starting to recover, it could be that M&A activity could pick up. After all, there is a bunch of cash sitting around at many companies.
Working corporate deals
Part of corporate finance is wheeling and dealing. Many companies hope to gain more market share and increase their cash flow by acquiring competitors or working …read more

Stocks were up on Tuesday after good news from manufacturing industries, retail sales and Ben Bernanke. Bernanke, the Federal Reserve Chairman, said that the recession has “very likely over”.
The Dow Jones industrial average finished the day at 9,683.41 after rising 0.6%. That’s the highest the Dow has been since October of 2008.
The Russell 2000 jumped 0.8% to 604.84, while the Nasdaq composite index ended the day at 2,102.64 after rising 0.5%. The Standard & Poor’s index was up 0.3% to finish at 1,052.63.
While Bernanke said the recession was technically over, he did mention that unemployment remains a problem.
“It’s still going …read more

The latest news on employment is in, and it looks as though the unemployment rate has hit a 26-year high at 9.7%. Even though the report shows that the pace of job losses is slowing, the fact remains that the economy is still shedding jobs. And many agree that employment is an important economic indicator. After all, it provides insight into how many people have jobs (or don’t), and that in turn provides a look at the health of businesses and individuals.
But how does unemployment work as an economic indicator?
According to The Mortgage Reports, it works as a lagging economic …read more

Signs of economic recovery are appearing, but it will still be a long haul.

Consumer confidence and other positive economic data are not enough to send the stock market higher.