“Stocks extended their declines in light, choppy trading Friday as investors were reluctant to remain in the market ahead of a weekend, amid worries over a global recession in addition to the ongoing euro zone jitters,” JeeYeon Park reports for CNBC. “The Dow Jones Industrial Average fell below the psychologically-important 11,000 level, after plunging 419 points in the previous session.”
“Hewlett-Packard slumped to a six-year low, plunging 20 percent and dragging the blue-chip index by about 45 points,” Park reports. “The S&P 500 and the Nasdaq also slipped. The S&P is on pace for its second worst four-week losing streak since 1950.”
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Park reports, “[HP] slashed its full-year forecast. HP’s weak forecast comes after rival Dell lowered its revenue outlook earlier this week that dragged down both stocks. At least two firms lowered their rating on HP, while three firms cut their price target.”
“With a lighter-than-usual calendar next week, investors will be closely watching Federal Reserve chairman Ben Bernanke’s speech at Jackson Hole next Friday. Investors will watch for any signs of a possible round of asset purchases (also known as quantitative easing) which will likely help bolster the stock market,” Park reports. “‘I don’t think [Bernanke’s] going to do that,’ said Scott Brown, chief economist at Raymond James, implying that further selloff and volatility may be in the cards.”
Read more in the full article here.
C’mon AAPL. Let’s go!
Why isn’t AAPL stock react in a complementary way to HPQ? Why doesn’t it jump upwards today? Even ACER did (for how long remains the question, because ACER has been in a downward spiral for a long time now).
Profitable companies with a lot of cash and no debt are going to be the safe havens in this market. Apple is the prime example of such a company. That large cash hoard (once called a “liability” by some) just became VERY important.
AAPL may have gone down with the rest of the market so far, but 60 days ago, AAPL was under $320. Today, AFTER the drop, it is about $356. Once that overall market decides where it will stabilize and build a base, AAPL should climb back up to the previous highs and beyond.
Apple can NOW use its cash to wisely buy valuable but struggling companies, whose market values just took a big dive. Time to go bargain hunting (not overpaying for Motorola Mobility or Autonomy). Apple will become stronger than ever, still profitable and still with no debt.
I agree with everything you said, but I’m still worried about the overall downward trend of the market. People are irrational and don’t always look at those kinds of details.
1 Excellent Analysis
Good time to buy some future options for AAPL. I recommend Jan 2012 options
Yup. What you said. And with the iPad 3 rumors swirling,the iPhone 5, cloud coming AAPL will be very high very soon. Use this as a buying op. Do not miss the boat. Options are expensive due to volatility but still are a way to play the fall season and really do well. You can’t win if you dont play. Get on board now!
Ironically, the best thing for the economy would be for Bernanke and the government to stop inflating.
Sure, if they keep printing money, the price of stocks will go up… just as everything went up in Zimbabwe. That’s where we’re headed.
If quantitative easing is “printing money” and inflation is such a worry, then why is there no sign of inflation whatsoever, after they’ve been doing it for a year?
But even better would be if the gov’t would print actual money, and use it to pay actual people to do useful work like like the WPA did in the ’30s. Some of our nation’s best public infrastructure, like national parks, date from that period. American can be great again, but it won’t be as long as we’re ruled by idiots that think every investment in the county is “inflationary” and “socialism.”
The only way we’re heading towards Zimbabwe is along the Gini index showing incredible wealth inequity — we’re now on a par with Uganda and behind Iran. And that’s thanks to the Republican oligarchs and the now the Tea Party. By the way, you do remember that Bernanke was originally appointed by Bush II, or as Molly Ivins said, “Shrub.”
Non-ironcially, the best thing for the economy would be for Bernanke and the government to start inflating.
Oil prices are falling and there is danger of deflation. Inflation is very low now and the US needs quantitative easing because the money supply is too small for the population. The baby boomlet, a very large demographic group, is coming of age to start businesses and buy houses, and the money supply is too small to give them loans.
When inflation hits it will come quickly and not with the warning some are expecting. Inflation doesnt exactly wear bells Printing money is going to devalue the dollar. It is inevitable. This will cause a cascade effect where eventually the entire house of cards will collapse.
Put away your tin foil hats and start saving canned goods.