Stocks End the Day Down After a Rough Start
The stock market ended down today, after a rather rough start. The bulls gave it a valiant attempt for awhile, hoping to undo yesterday’s profit taking, but it was not to be. Too much bad news is putting a damper on the economy, and sending stocks lower.
Even though the jobless claims data was more positive this week than last, and even though oil prices plunged below $40 a barrel (they closed at $37 a barrel), the stock market remained resolutely down. These items are the sort of things that normally help the stock market. However, there just doesn’t seem to be enough optimism, and the news about General Motors (GM) and General Electric (GE) just seems overwhelming.
Downgrades on the stock market
There have been a number of downgrades on the stock market recently, mostly in the financial sector (Morgan Stanley was hit hard by a downgrade yesterday). However, even without downgrades stocks are having a hard time. GE is a good example. Even though GE wasn’t officially downgraded, its outlook changed from “stable” to “negative.” This is the sort of thing that does little to inspire confidence and encourage investors.
For GM, the news keeps getting worse. The government is promising some sort of aid by the end of the year, but the U.S. auto industry isn’t holding its breath. Especially since there are now indications that the bailout help may actually be aid with filing Chapter 11 bankruptcy — something the car maker was hoping to avoid in the first place. GM plummeted as word reached investors that the company would resume merger talks with Chrysler.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
