on Sat 11/21/2009 7:57 AM
Investors can't shake their fears that the economy isn't keeping up with the stock market. Stocks fell for a third straight day Friday as a disappointing outlook from computer maker Dell Inc. suggested that an economic recovery could be uneven. The major indexes all had moderate losses, leaving the Dow Jones industrials with a slim 0.5 percent weekly gain while broader indexes slid ap reports.
The market, which has been shuttling between concerns about the economy and traders' need to find high-yielding investments, is back to worrying about the economy. Demand for safe haven investments like Treasurys and the dollar rose for a second day in response to Dell's outlook and comments from European Central Bank President Jean-Claude Trichet, who said the ECB plans to start reining in some of its stimulus programs. A rising dollar also hit commodities producers and exporters.
The week's trading saw investors, who have been pumping money into stocks because record-low interest rates mean paltry returns for the dollar and Treasurys, change that strategy. Many are now questioning whether the massive stock rally this year really has been justified given the soft spots in the economy, and so they've been quick to retreat to safe harbors like government debt and the greenback.
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Posted by Brad_10
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unemployment is a major concern california florida michigan are all in deep trouble on that front and no jobs no consumer spending low corporate profits so high markets just don't add up.
on Sat 11/21/2009 7:59 AM
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Posted by Treaty
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I am pretty impressed with the resiliance of this market, the dow has broken out decisively above 10,000 and the pullbacks are small.
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