Stocks Were Stuck in Idle as Volume Slides Across Wall Street
July 22, 2008
Traders were hesitant to jump in or out of stocks Monday as the market ended relatively flat and on lower volume. Crude oil jumped on news that Dolly may threaten the Gulf’s off-shore drilling facilities. However, the storm seems a little erratic at this point to judge the path and if it will head towards those oil rigs. Stocks at this point seem real sluggish and news that AAPL guided lower (sandbag as the street refers to it) the stock was taken out to the woodshed and beaten. Earnings season is upon us again and we’ll certainly see our share of beats/inlines/misses, but it’ll highlight the point that playing earnings is simply gambling and not speculating. Monday’s action was quite tame, Day 4 for S&P500 and Day 5 for the NASDAQ respective rally attempts. It was nice NOT to see us sell off on heavier trade, but will Tuesday bring on the pain for the newfound “bottom feeder” bulls?
I continue to be cash heavy and not a big fan of building any sort of long term positions. Although we may be close to a bottom, we won’t know until after. Odds are in my favor when I am patient and wait for that bottom to form and then move higher.
Enjoy
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Reuters Business- Alcoa to slash jobs and sell 4 unitsNEW YORK (Reuters) - Alcoa Inc said on Tuesday it would slash more than 15,000 jobs, halve capital spending and sell four businesses as it reduces aluminum production in the face of the global economic downturn.
- Bank of America selling $2.8 billionHONG KONG (Reuters) - Top U.S. lender Bank of America , raising cash to weather a dismal market at home, is selling a $2.83 billion chunk of its holding in China Construction Bank at a 12 percent discount on Wednesday, according to a term sheet obtained by Reuters.
- U.S. budget deficit seen topping $1 trillion in 2009WASHINGTON (Reuters) - Politicians want American consumers to resume spending to pull the economy out of its tailspin, and the U.S. government is leading by example with a potential $1 trillion deficit in 2009 -- even before a massive stimulus plan.
- Alcoa to slash jobs and sell 4 units
- Market Watch
- Miners lead in Asia as metal prices jumpAsian shares were higher Wednesday after another gain on Wall Street, with mining stocks powering ahead on a recovery in prices for base metals and gold.
- Millionaires join the rest of us in feeling the economic heatAn overwhelming majority of Americans 45 years and older think the economy is in dire straits. That’s not limited to those who live paycheck to paycheck either. A record 80% of millionaires polled in another survey said this is the worst financial crisis they have ever experienced.
- Asia Markets: Mining, metal stocks rise, unmoved by Alcoa newsAsian metal and mining stocks such as Rio Tinto and Sumitomo Metal Mining Co. climbed Wednesday on an increase in nonferrous metal prices, disregarding Alcoa Inc.’s decision to slash jobs and curb output in response to the global economic downturn.
- After Hours: Alcoa shares slump in wake of cost-cutting plan; F5 surgesShares of Alcoa Inc. dropped Tuesday evening as the aluminum giant outlined aggressive cost-cutting plans that will include job losses for more than 13,000 workers, while F5 Networks Inc. shares got a lift following the company’s forecast.
- Latin American Markets: Brazilian investors eye rate cut; Wal-Mart de Mexico downgradedBrazilian stocks rose Tuesday, holding to higher ground as investors eyed the possibility of cut in interest rates following a report that the country’s industrial production dropped sharply in November.
- Miners lead in Asia as metal prices jump