Search

The article reports that U.S. stock prices fell for the fourth consecutive week, as the Dow Jones Industrial Average fell by 0.6 percent in the last full week of trading in May, 2011. The average has declined by 2.9 percent for the entire month of May. It is the second consecutive May in which U.S. stock prices have declined.

The article discusses skepticism about an ongoing bull market in stocks. Since March, 2009 the Dow Jones Industrial Average has risen 86% while the Standard & Poor's 500 index has gained almost 100%. However, some worry that rising oil prices, inflation, and cessation of stimulative efforts by the U.S. Federal Reserve could conspire to push stocks down.

The article reports that various market and economic indicators have regained levels not seen since investment bank Lehman Brothers failed in 2008. Stock prices have doubled since that time, and merger activity has rebounded as well. Markets are seen to have benefited from the U.S. Federal Reserve's $600 billion program to purchase U.S. government securities, and it remains unclear how they will react if that program is not extended beyond June, 2011.

The article reports that market fundamentals, rather than concerns about macroeconomic risks, seem to be playing an increasing role in how stocks, bonds, and commodities are priced. One indication is the breakdown in what has been a strong negative correlation between the U.S. dollar and Standard & Poor's 500 index since early 2009.

The article discusses the favorable reaction to global markets to the U.S. Federal Reserve's announcement that it would buy $600 billion worth of U.S. government securities over an eight-month period. The Dow Jones Industrial Average rose almost 220 points, while stock markets in India, Japan, and China all enjoyed healthy gains.

The article discusses the waning market impact of expectations that the U.S. Federal Reserve will announce a program to purchase U.S. government bonds on November 3, 2010. Stock prices rose during the several weeks leading up to November, but have begun to decline some as published reports indicate the program might not be as large as once thought.

The article reports that stock prices of major U.S. banks fell in response to worries over a possible crisis involving foreclosure on mortgage loans held by homeowners. Foreclosures have been suspended by several banks in response to reports that the documentation of many mortgage loans was improperly or illegally created and used in the foreclosure process.

The article discusses a lack of factors likely to drive stock prices substantially higher. Although interest rates remain low and China has indicated it will let the yuan appreciate some, an uncertain economic recovery, cutbacks in spending by governments around the world, and a debt crisis in Europe could all act to tamp down share prices.

The article discusses whether a recent decline in stock prices represents a temporary correction in a bull market that began in March, 2009, or the start of a new bear market. Strong corporate earnings argue in favor of continued rising stock prices, while a debt crisis in Europe has created anxiety among investors. Several quotes representing differing perspectives are presented.

The article focuses on stock market prices in the wake of improvements in economic indicators and credit markets in 2009. It states that economic indicators and credit markets are returning to the level they were at before Lehman Brothers declared bankruptcy in September of 2009. It mentions the Dow Jones Industrial Average has rallied 42 percent since March 9, 2009, but is still down almost 34 percent from September 12, 2009. It suggests lower corporate profits are keeping stock prices down.

The article discusses the rising stock market. Over a three-month period the Dow Jones Industrial Average has gained about 34%. In addition to stock purchases by money managers, government efforts to revive the economy have also contributed to the rise, as some government funds injected into the economy have been invested in financial markets.

The article reports that U.S. stock prices fell significantly for a second consecutive day. The Dow Jones Industrial Average was down 1.8 percent. Investors reacted to another record price for petroleum futures of $133.17 a barrel and to the publication of the minutes of the April 29-30, 2008 meeting of the U.S. Federal Reserve Board which indicated that the board will not cut interest rates in the near future.

The article reports that an unexpectedly poor quarterly earnings report from General Electric (GE) led to a sharp drop in the company's stock price and in U.S. stock markets in general. GE Chief Executive Officer Jeffrey Immelt said he now expected to profit to grow just 5 percent in 2008, only a month after forecasting double-digit growth. GE's large and diversified operation means that investors consider it a bellwether indicator of economic conditions.

The article reports on the surge of the Japanese yen as Asian stocks prices fell following the earthquake in Japan.

The article reports on the decline in shares of credit-rating companies, including Moody's Corp. and McGraw-Hill Cos., in May 2010.

The article discusses profit expectations for the Standard & Poor's 500 companies in 2010. Analysts expect net income to jump between 21% and 30% compared to 2009. Although rising profit margins and stock buybacks will likely contribute to higher earnings-per-share figures, current share prices may already reflect that.

The article discusses the U.S. Federal Reserve's policy with respect to interest rates. Futures prices suggest investors expect the Fed will begin raising rates before September, 2010. History has shown that stock prices tend to fall about one-half year before rates rise. Given the unusual economic environment in 2009, the impact on prices of higher rates could be especially pronounced.

The article discusses prospects for shares of Intel Corp. Earnings that exceeded expectations for the second quarter of 2009 helped prompt a market rally. However, analyst James Coviello thinks Intel's profit margin could soon hit 60%, a point that historically has indicated a peak in share price. Intel shares could still do well, though, if businesses increase spending on technology.

The article discusses prospects for 2010 corporate profits. Analysts' estimates for the Standard & Poor's 500 companies imply 2010 profit margins markedly above their long-term average. If those margins are not achieved, or if they come to fruition over a longer period than expected, then share prices could suffer.

The article examines the relationship between stock prices and the price of petroleum futures in commodity futures trading. The two relatively risky investments have both risen more or less equally in 2009, but in the week of September 21-25, 2009, oil prices fell far more sharply than did stocks. Stock prices, which depend on investor sentiment, can increase to far higher levels than petroleum futures, as the rising price of petroleum products eventually damages demand.

The article discusses accounting of corporate profits in financial statements and its significance for investors. So-called operating earnings, which exclude one-time losses such as credit writeoffs, are compared with the earnings declared by Generally Accepted Accounting Principles (GAAP), the standard used in statements filed with governments. There has been an increasing gap between earnings as measured by the two methods since 1995. The implication for stock prices is examined.

The article discusses U.S. employment and its effect on stock prices. The Bureau of Labor Statistics will present its August employment report on September 4, 2009, and most economists forecast continued job losses. Other economic indicators such as manufactures have improved in the summer of 2009. It is forecast that continued weakness in employment would end the 2009 stock price rally.

The article focuses on home-improvement business stocks. It states that home-improvement retailers Lowe's and Home Depot are expected to report earnings down for 2009 compared to 2008. It mentions that the U.S. Census Bureau will report home-construction data for July on August 18, 2009, with home construction expected to be up from a record low in April of 2009. It suggests that Lowe's and Home Depot's stock prices are vulnerable to possible downturns in housing sales.

The article reports that U.S. stock prices fell slightly, indicating a pause in a significant rally since the bottom of the bear market in March, 2009. The Dow Jones Industrial Average fell 0.3 percent, but remains over 40 percent above its March lows. Financial services companies, whose stocks were devastated during the global financial crisis, have been among the rally's leaders in the summer of 2009.

The article discusses the stock market. Although shares have risen sharply amid a current bull market, corporate earnings may need to start showing improvement before stocks rise much higher. A troubled banking sector and frugal consumers could exert downward pressure on earnings, though. John Truschel of Boston Company Asset Management does not believe earnings will rebound strongly any time soon.

The article discusses rallies amid an ongoing bear market in stocks. Since September, 2007 there have been three separate intervals where the Standard & Poor's 500 stocks gained at least 15%. Such volatility is typical in bear markets, although rallies during 2007-2008 have been notably brief. In historical terms stocks are inexpensive, although they could get cheaper still.

The article discusses signs that the Dow Jones Industrial Average (DJIA) could be due for an upward move. That the DJIA has fallen 32.6% below its 200-day moving average -- a level rarely achieved -- suggests it could rally soon. Trader Michael Panzner thinks a near-term "bounce" could occur soon, although he continues to be pessimistic for the long term.

The article examines investor psychology and U.S. stock prices. Prices have risen slightly when the administration of President Barack Obama has announced plans to cope with the financial crisis only to fall sharply almost immediately afterwards. It is possible investors are not reassured by positive comments on the crisis from government officials because they fear more drastic actions, such as bank nationalization, are necessary.

The article reports that prices of stocks have gotten more expensive as Wall Street analysts have gotten more pessimistic in 2009 earnings. When the 2009 year began, the analysts expected per-share operating earnings of the Standard & Poor's 500 (S&P 500) companies to rise 22 percent in 2009. However they revised their expectation predicting that earnings will shrink 12.6 percent. Meanwhile, the S&P's forward price-to-earnings ratio has risen to 12.8 from 9.4.

The article discusses the difference between firms' operating earnings and net income. The latter includes all revenues and expenses, whereas the former strips out non-recurring items, which can have a sizable, negative impact during recessions. In terms of valuation, stocks in late 2008 appear cheap relative to operating earnings, but expensive when reckoned in terms of net income.

The article discusses shares of FedEx Corp. as a bellwether for stocks. Shares of transportation companies tend to rise prior to a recession's end, and FedEx's have appreciated almost 13% since November, 2008. However, continued difficult economic conditions marked by corporate cost-cutting and tight credit markets suggest gains in FedEx could be premature.

The article discusses the significance of a massive selloff in stocks on September 29, 2008. Although shares recovered some the following day, trading volume and the number of issues participating in the advance were relatively weak. With credit markets in difficult circumstances, it is not likely that stocks can enjoy a sustained rally any time soon.

The article discusses the inability of U.S. federal intervention in financial crises during 2008 to calm worried investors. Although markets briefly rallied in the aftermath of the Federal Reserve's emergency rate cut in January, and the Treasury Department's intervention concerning Fannie Mae and Freddie Mac in September, in these and other instances the markets soon resumed their downward path.

The article discusses the significance of falling oil prices. Stocks related to consumer discretionary goods performed well as the price of oil declined during the summer of 2008. If weakness in oil prices reflects expectations for a softening U.S. economy, however, then stock prices could begin to suffer as well.

The article discusses seemingly contradictory signals being given by the stock and bond markets. Since July 15, 2008 shares have risen in price even as spreads between corporate bonds and the 10-year U.S. have increased. Some analysts believe widening spreads reflect corporate deleveraging rather than expectations for a worsening economy.

The article discusses the disconnect between stock prices and corporate earnings. Historically share price movements reflect earnings developments six months in advance, but the relationship seems to be breaking down. Contributing factors include hedge funds concerned with short-term results, and growing numbers of firms that don't offer earnings guidance.

The article discusses shares of General Electric Co. (GE). Stock in GE has appreciated little since July of 1998, and was punished severely by investors when the firm failed to meet analysts' expectations with its earnings report released in April, 2008. Any improvement in GE's share performance may have to await better overall economic conditions.

The article reports that U.S. stock prices fell sharply in reaction to investors' anxieties about renewed inflation in the economy. The Dow Jones Industrial Average was down 1.5 percent, its largest one day drop since May 7, 2008. Inflation fears were generated by another record high for petroleum futures of $129 a barrel, and the Department of Labor's announcement of an 0.4 percent rise in its producer price index for April, 2008.

This article focuses on the Dow Jones Industrial Average. The Average dropped 120.90 points on May 9, 2008, to close out the week at a 2.4% fall. The fall has deflated optimism about rising stock. Stock that fell most significantly includes companies American International Group, General Motors, and FedEx.

The article reports that U.S stock prices rose modestly despite some discouraging economic reports. Another rise in the price of oil and a poor University of Michigan consumer confidence report for April, 2008 did not prevent the Dow Jones Industrial Average from finishing with a gain of 0.3 percent.

The article reports that U.S. stock prices declined significantly after General Electric (GE) issued a surprisingly poor earnings report for the first quarter of 2008. The Dow Jones Industrial Average was down 2 percent as GE's stock price fell 13 percent. GE's announcement damaged investors' hopes that the economic damage created by the fall in U.S. housing prices would be limited to the financial services industry.

The article examines the quarterly reports of the first major corporations to make their earnings statements for the first quarter of 2008. Alcoa, the first to do so, reported a 52 percent decline in profit compared to the same quarter of 2007. Computer chip maker Advanced Micro Devices and delivery company UPS both issued warnings profits would be lower than expected. This suggests U.S. stock prices may suffer further declines as overoptimistic investors get more bad news.

The author offers opinions on U.S. stock prices. The decline in prices in 2008 is seen as likely to contribute to further weakness in the economy. Consumers have been selling stock to finance consumption as borrowing has become more difficult. This means they will eventually lower the spending which is the foundation of the economy.

The article presents an evaluation of the consensus of U.S. stock price forecasting for 2008. The Standard & Poor's 500 index companies are selling at a 16:1 price-earnings ratio, close to the long-term historical average. Forecasts that corporate profits will grow significantly in the second half of 2008 do not account for the effects of a recession.

The article discusses the adverse implications for stock prices of rising inflation. During the 1970s stock prices fell as inflation surged, but recovered during the 1980s and 1990s as inflation moderated. A study by Ned Davis Research shows that years in which the consumer price index registers above-average increases presage weak performance by the Standard & Poor's 500 index.

The article discusses financial-market results for March 15, 2011. In Japan the Nikkei stock index rose almost 376 points, while in the U.S. the Dow Jones Industrial Average recovered partly from a 296.91-point decline to finish down 137.74 points. Prices of several commodities fell amid concerns about the impact of an earthquake and tsunami in Japan on the global economy.

The article discusses the 11% gain recorded by the Dow Jones Industrial Average on October 13, 2008. Inspired in part by government plans to inject capital into the U.S. banking system, the rally raised questions as to whether an ongoing bear market in stocks was over. Phil Roth of Miller Taback & Co. believes that stocks will continue to perform well in the medium term.