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A Little Life In The Stock Market Today

Today the stock market had a little life in it. Gaining 75 points to start off the week after a dismal performance during the last three weeks. The DOW has been doing outstanding holding on to this level of 16,000-17,000 points. The question is though…How much longer will this last???

There is too much turmoil going on in America as well as around the world for the DOW to even be at this level. So why is the DOW and the other indexes doing so well?

This is an election year which will play a factor in the performance of the markets. Politics plays one of the biggest roles in what happens on Wall Street. Laws that are written, wars that are waged along with the money being printed by the Federal Reserve can and will cause the DOW to skyrocket or plummet. With all the crap going on, I’m surprised the DOW isn’t at the 10,000 or lower range.

I read an article the other day written by someone who is an stock analyst claiming the DOW should be be around 10,000-11,000 range. The assistance coming from Ben Bernake and friends in the form of the never-ending-printing-machine have made our dollars weak which in return will cause the market to be higher than it should be. Last week the Federal Reserve announced the reduction of quantitative easing. In doing so, expect interest rates to start rising. If your were thinking of buying a home or more property for an investment, I suggest you do it real soon before rates go up.

If your are one of the many people who have gone back in the stock market, either in your 401K or you’re doing your own trading, I recommend pulling back, moving more of your investment into commodities like gold, silver and other hard assests or getting the hell out completely. There’s only so much stress on anything before it snaps.

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Stock Market – 1st Week of July 2011

The week ending July 1, saw the US stock market showing its best performance over the last two years. In fact, the DOW rose to a fairly decent 648 points. The showing for last week was partly attributed to steps by Greece to deal with the country’s financial crisis. Some industry experts also believe that the slight flickers of hope from the US manufacturing sector also helped. So far, this week seems to be maintaining the momentum, with reports that the DOW Jones and S&P have had a 5-day winning streak.

The DOW overcame slight hiccups earlier in the week to end on a rising note, registering 12,626.02 or a 56.12 point rise at the end of trading on Wednesday, July 6. There were increases on the other main indicators as well, with the Nasdaq rising by 8.25 points moving to 2, 834.02 and the S&P advancing by 1.34 to 1,339.22.
The weak service sector job market is partially responsible for the slower market this week. Interestingly, while showing slower than anticipated job growth, the service sector also registered 19 straight months of job growth in the sector.

US Stock Futures Continue to Fall
The activity of the leading international markets continues to have a negative impact on US stock market futures. The downgrading of Portugal’s debt rating to ‘junk status’ by Moody’s lead to lower European stock markets. The continuing financial tremors in Europe are having a less than desirable effect on other stock markets globally. The downgrading of Portugal’s debt rating resulted in Asian markets closing the day with mixed trading.

With China set to increase its interest rates by a quarter point there will be a negative impact on the market. There are expectations that the hike which is due to the country’s high inflation rate, is expected to happen by the end of the week at least.

With trading taking a day off due to the 4th of July celebrations, the reduced activities also helped to lower the stock market futures. Reports indicate that the DOW Industrial Average futures dropped 54 points, the Nasdaq 100 was down by 8.75 points and Standard & Poor’s 500 also fell 8 points. Investors the world over are being cautious as they watch to see what will happen in the Eurozone as well as in China.

Slowing Stock Market Derailing Takeovers
The continuing snail’s pace of activity in the global stock market is negatively impacting takeovers. Between May and the end of June 2011, there was a 22 percent fall in the value of takeovers according to Bloomberg.

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