Stock Down Again Monday
Stock Down Again Monday
August 30, 2010
The Dow Jones Industrial Average was down by more than 30 points, the NASDAQ Composites were down almost 5 points, and the S&P 500 was down almost 3 points this morning. Consumer spending was up 0.4% for the month of July on demand for autos.
This positive is almost certain to be overshadowed by negative numbers in jobs netted, falling sales of existing homes, and other terrible numbers. Unemployment is still 9.5%, and the so-called “Summer of Recovery” was not a recovery. Next month, data is expected to show that this was much more a “Circling the Drain Summer”, as economists and analysts say that the economy is weak and is certainly backsliding.
Gasoline prices have fallen seven cents a gallon in the last two weeks, finally catching up to the decline in the cost of crude. Demand for gas this summer has been significantly lower compared to other years, due to the high unemployment rate. People have not been traveling or driving as much, and consumer spending is still anemic, though it was improved slightly on higher demand for cars.
September marks a traditional period of lower demand for gasoline, due to lower travel rates and students being back in school for the year. This is expected to keep gasoline prices steady or even cause them to decline somewhat.
Data expected to be released in September will show exactly how far the American economy has slipped, with jobs numbers for the third quarter of the year expected to be dismal, and housing sales down and foreclosures up. News on the stock markets as well as the economy is expected to be choppy at best.
Related posts:
- US Durable Goods Numbers Disappoint, Cause Stocks to Open in Slump
- Stocks Post Gains for Second Day in a Row
- Stocks Up Ahead of Better than Expected Data
- Stocks Take Tumble on Terrible Housing Numbers
- Stocks Bolstered by Slew of Merger and Acquisitions Activity