Friday, November 09, 2007
Techs Burn
The losses continued Thursday with the tech sector really suffering. The Dow closed the session with a loss of 33.73 points to 13,266.29. The SPX gave up just 0.85 points to finish the session at 1,474.77 (having been in the low 1460's at one point). The NASDAQ slid a whopping 52.76 points to close at 2,696.00. We are in the green and looking very good.
The Naz was hurt Thursday following a disappointing outlook from tech giant Cisco. Any bad news at the minute is not going down well.
Retail stocks also took a hit following sluggish same-store sales data for October.
Fed Top Man Bernanke spoke yesterday and his comments were mixed. He noted that the economy is expected to slow in the fourth quarter due to continued weakness in the housing market, record high energy prices and a falling dollar. Bernanke also stated that inflation pressures at the core were easing, but that high energy prices could be a problem for pricing pressures during the quarter! However, because he voiced concern about growth, traders are hoping for another rate cut in December.
It might be hopes of a Fed rate cut that allowed the financial sector to make a comeback late in the session. Oil prices closed near their highs of the day at $96.30, a gain of 84-cents a barrel. There continues to be worries about supply and the weakness of the dollar. Spending has remained decently strong despite high energy prices, but all most everyone agrees that sentiment will not be good if oil hits $100 a barrel.
Until next time.
The Naz was hurt Thursday following a disappointing outlook from tech giant Cisco. Any bad news at the minute is not going down well.
Retail stocks also took a hit following sluggish same-store sales data for October.
Fed Top Man Bernanke spoke yesterday and his comments were mixed. He noted that the economy is expected to slow in the fourth quarter due to continued weakness in the housing market, record high energy prices and a falling dollar. Bernanke also stated that inflation pressures at the core were easing, but that high energy prices could be a problem for pricing pressures during the quarter! However, because he voiced concern about growth, traders are hoping for another rate cut in December.
It might be hopes of a Fed rate cut that allowed the financial sector to make a comeback late in the session. Oil prices closed near their highs of the day at $96.30, a gain of 84-cents a barrel. There continues to be worries about supply and the weakness of the dollar. Spending has remained decently strong despite high energy prices, but all most everyone agrees that sentiment will not be good if oil hits $100 a barrel.
Until next time.
# posted by Paul @ 6:17 AM 
