Stocks Still Dropping
Stocks Still Dropping
August 31, 2010
The Dow Jones Industrial Average was down26 points on opening today, the NASDAQ was down 10 points, and the S&P 500 was down 3.5 points on opening this morning. The DJIA opened well below the very important 10,000 mark on the last day of August, ahead of data expected to be released in September which is expected to show a decline in manufacturing, and extremely low consumer confidence and poor housing numbers.
Stuart Varney of Fox Business says the President’s plan for the economy is a drop in the bucket, which will be little or no help in creating jobs and stimulating the weak economy. Data expected to be released for the third quarter of 2010 is expected to be dismal, with housing sales still falling, manufacturing down, consumer confidence in the dumps, and productivity and construction down. The weekly jobless numbers will be out on Thursday, and data is expected to show that the National unemployment level is above the current estimate of 9.5%.
Traders and analysts are being very cautious, putting money into Treasury Bonds and other more secure investments rather than more volatile stocks. Economists and analysts are expecting data to be released in the first week of September to show that the US has slipped back into a deep recession. Jobs are not being created, there is little hiring, and consumer confidence is extremely low.
Consumer confidence stimulates consumer spending. Consumer spending makes up 70% of the economy. Shares of stocks indexed on the DJIA, the S&P 500, and the NASDAQ Composites are trading below fair market value, and volume is currently low, partially because of the summer. Trading is traditionally lighter in summer.
Related posts:
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- Sputtering Stocks Close with a Gain
- Stocks Set for Rebound Today after Jobless Claims Fall
- Stocks Still Down
- Stocks Set for Mixed Results Today