Thursday, October 02, 2008
Oh No...Its October!
October is historically not a good month for stocks....and that is all these markets need at the minute. A bogey month!
On Tuesday we saw a bounce with the markets regaining at least half of their monster losses the day before.
October got off to a losing start Wednesday with the Dow falling 19.59 points to close the session at 10,831.07. The SPX lost 3.68 points to end on 1,161.06.
Traders were waiting for a crucial vote by the Senate on an adjusted bailout package, which would likely provide a boost for stocks if approved. However, disappointing economic news and continued worries about the credit markets left traders on the sidelines with the major market indices seeing a slightly bearish bias.
The Senate have approved the bill yesterday and its going to Congress for their approval again. Lots of Senators have been warning of financial armageddon if not passed.....so lets hope it is.
In economic news (remember that...its been a while since we commented on anything data wise economic), the ISM Mfg. Index fell 6.4 points to 43.5 in September. Not only is this a very low figure, but the month to month decline was extremely large. The last time a monthly ISM report saw this sort of a decline was immediately following 9/11. This is another sign that a recession is nigh and puts even more pressure on the government to get a bailout package passed.
Until next time.
On Tuesday we saw a bounce with the markets regaining at least half of their monster losses the day before.
October got off to a losing start Wednesday with the Dow falling 19.59 points to close the session at 10,831.07. The SPX lost 3.68 points to end on 1,161.06.
Traders were waiting for a crucial vote by the Senate on an adjusted bailout package, which would likely provide a boost for stocks if approved. However, disappointing economic news and continued worries about the credit markets left traders on the sidelines with the major market indices seeing a slightly bearish bias.
The Senate have approved the bill yesterday and its going to Congress for their approval again. Lots of Senators have been warning of financial armageddon if not passed.....so lets hope it is.
In economic news (remember that...its been a while since we commented on anything data wise economic), the ISM Mfg. Index fell 6.4 points to 43.5 in September. Not only is this a very low figure, but the month to month decline was extremely large. The last time a monthly ISM report saw this sort of a decline was immediately following 9/11. This is another sign that a recession is nigh and puts even more pressure on the government to get a bailout package passed.
Until next time.
# posted by Paul @ 8:19 AM 
