Stocks Turn Up in Choppy Trading
August 13, 2010
Stocks edged higher today but trading was choppy. The Dow Jones Industrial Average was up 7 points, the NASDAQ down 8 points, and the S&P 500 was down 1 point. This comes after three days of decline in trading.
Kim Caughey, senior equity analyst at Fort Pitt Capital Group, said,
“It’s low volume season-also known as August. Traders are on vacation, and we get some pretty crazy reactions, or lack of reactions, because of that.”
Analysts and traders alike have blasted the Fed for keeping interest rates so low, saying that it is not a sign of confidence in the recovering economy. This leads to a further lack of consumer confidence, which means consumers aren’t spending much. Consumer confidence and spending drive 70 percent of the economic markets. Thomas Hoenig, President of the Kansas City Federal Reserve Bank said the interest rates set by the Federal Reserve were “a dangerous gamble”. His comments weighed heavily on investor sentiment, which was already weak after a week of dropping stocks and values. Investors and consumers alike are showing a lack of confidence that leads to a lack of spending-and trading.
The disappointing July non-farm payrolls report, added to the retail reports that showed sales being down at some stores more than others, while inventories were up, did nothing to boost anyone’s confidence in the shaky economic recovery. Companies are still not hiring, and business is slower than analysts had predicted for this period of recovery from the recession.
More Posts by this author
- Stocks Slightly Up, Early Enthusiasm Weaker Now
- DJIA Reflects Jobs Data
- Oil Prices to 75USD, Stocks Up
- Stocks Open Higher Today
- EU Fails Bank Stress Tests Indices Give Back in US
- Stocks Open Lower on First Day of School
- Stocks Higher This Morning on Jobs Data
 |
Post Written By: Market Updates
|
