Nothing But Early Hope by Milota Sidorova

Finally it has happened, only proving American economy wasn’t recovering as one might think after five days rally last week. The main index Dow Jones gained in total 1,276 points, the broad index S&P 500 rose approximately 20 percent. According independent observers this equaled a gain of several years with balanced economy. So after all this sky highs, the pull back was more than expected.
The loss was huge. In fact, it’s been one of four major losses in American trading history. Dow Jones plunged more than six hundred points just in September 11, 2001 and in Sep 29, Oct 15 this year.

All of thirty index creating companies declined yesterday and Dow Jones lost totally 679.95 points to hit 8,149 point level. However, considering alarming news from Labor Department about urging unemployment, declining consumer index and manufacturing at its lowest point since 1982 and felling construction, investors couldn’t do much better. Yields on three month Treasury, generally considered as the safest slipped 0.03 percent. It seems like investors will to accept lower gains just to keep the stocks back in safe zone.

Summing events from the last week, there was nothing but Mr. Obama rallying markets in high speed. He has announced members of his economic team, mostly experienced and trusted people, warmly accepted by financials.

Monday meant more than a disaster decline for many of Wall Street bank ‘survivors’. Citigroup that has already announced huge loss last week slipped 22 percent. Also Morgan Stanley and Goldman Sachs lost in average 20 percent each. These were the companies with the best rating. Yesterday shake has pointed on the success of governmental ‘rescue’ plan which actually seems like a bubble.
Nice but for nothing.

And for the markets – poet or maybe just Amy W. could tell – back to black.




related story: http://news.yahoo.com/s/ap/wall_street;_ylt=ApI38ZIiOjyKeqP3bWtf1Zus0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

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