Dow Jones in bear market. by Silvia Szarkova

The record oil and gasoline prices are responsible for the most changes in world´s markets. That is not different in United States, where the negative consequences have wider influence and are more obvious, as they are home for a vast amount of stock exchange, including the biggest one in the world- New York Stock Exchange, or if you want that lower Manhattan nick name- U. S. is a home country of Wall Street. Dow Jones was forced to go into a bear market, as on Wednesday the conditions were so unhosting. The bear market is a unwilling status on stock exchange or the market with falling stock prices, a situation in a stock or commodity market in which stockholders are selling in anticipation of falling prices. Dow Jones so closed 20 per cent below its October 2007 peak After toying with this status for several months, Dow was no longer able to stand up for the anticipations of inflation and banking losses, which all weakened the consumers believes. General Motors´ shares went down more than 15 percent, and if continue to decline or a auto market is slumping for a longer time, automaker will need 15 billion dollars to show up liquidity. Bankruptcy is so not impossible, said Merrill Lynch. In addition to this more than bad situation, according to Henry Paulson, Treasury Secretary, also the situation with declining home prices is going to continue, and capital market confusion will also carry on, and prolong so the American economy downturning character also in future. Report released a day before it shows that also employers are afraid- they cut the numbers of employees- in June private empolyers got rid of 79, 000 people. Maybe the worst things are the pesimistic views of managers and further person in business. Kurt Brunner, portfolio manager at swarthmore Group in Philadelphia, Pennsylvania, says: “ This market is not for the faint- hearted right now. I really don´t see us getting out of this quagmire, this dark zone anytime soon- I don´t believe we´ll see a whole lot of positive rhetoric surrounding earnings coming up. “

related story: http://news.yahoo.com/s/nm/20080702/bs_nm/markets_stocks_dc;_ylt=Ag60dRJ4em3Zwd_0vNZZUV.s0NUE

by Silvia Szarkova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>



posted by Lucia Adamova