Can Obama rescue the market? (November 10, 2008)
The major indexes jumped more than 2 percent on Friday as many buyers returned to Wall Street after two days of heavy selling, mainly from Hedge funds that were forced to close large positions to supply the cash demands from their customers. Despite this, the market continued its negative trend and finished the week 4 percent lower.
A few days after the new American president, Barack Obama, was elected, he reiterated his statement regarding the great deal of hard work that needs to be done to restore the economy’s health. Obama emphasized the obvious, that the economy’s problems won’t be easily solved and he predicted a required period of at least three years to bring it back on track.
In major corporate news, General Motors Corp. (GM) reported a $2.5 billion loss in the third quarter and warned that it could run out of cash in 2009 if the U.S. economic drop continues and if it doesn’t receive government assistance. The company also suspended its plans to acquire Chrysler. In the same industry, Ford Motor Co. said it also lost $129 million for its third quarter and will be forced to dismiss more than 2,000 workers in North America. As auto sales have nearly shut down, more auto akers are expected to face substantial financial difficulties.
A handful of retailers are expected to report earnings this week, including Wal-Mart Stores Inc. (WMT), Starbucks Corp. (SBUX), Nordstrom Inc. (JWN) and J.C. Penney Co. Inc. (JCP). Just like in previous quarters, analysts are expecting major drops in most businesses’ operating profits . If this happens, these earning declines would be the strongest indication that the recession is already here and is planning to stay for a while.
In Yalicoo Competitions
Daytr8r (36.34%) continues to lead in the quarterly competition as he improved his return by 5 percent last week. A few successful energy company picks made by 12345 (23.56%), such as ESLR, SOLF and ENER, dramatically increased his portfolio and put him in second place, while small (22.54%) continues to keep his empty portfolio. Another well-known name on the scoreboard is genibus (14.63%), who has already won several competitions in the past and won’t give up his position on the winner list.
FREE Practice Game
If you feel the need for more stock trading practice, the FREE Practice Game on Tuesday (11/10/2008) is the right place for you. This competition is open for everyone to join. The rules are the same as in other daily competitions, but there is no entrance fee and it could substantially improve your trading skills.
1 Comment Add your own
1. Bhekiwe Dumsani Nsibande | November 13th, 2008 at 12:49 pm
The whole world has been experiecnes some difficult times some of which were as a result of George Bush’s leadership ways.The new president will brings in new hope for the rest of the world,so if Obama can rectify the mistakes made by Bush then yes He will rescue the market
Leave a Comment
Some HTML allowed:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
Trackback this post | Subscribe to the comments via RSS Feed