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Hanna
Thursday, November 6th, 2008, 10:27 PM
Well, do all you think Obama responsible for shattering the stock market record? We have had some of crazy discussions at our class about this particular topic. The news demonstrated that the biggest drop in the Dow Jones (DOW),Standard & Poor's (S&P) and as well as NASDAQ . So to sum up Obama's victory somehow shows there were a drop of 3 percent in the these three stock market. Those who're interested with this topic might find some additional information as below.


NEW YORK (Reuters) -Stocks plummeted on Wednesday, a day after Barack Obama's historic victory in the U.S. presidential election, as a fresh batch of dismal economic data underscored the massive challenges awaiting his administration.

The drop marked Wall Street's biggest loss ever on the day after a presidential election, coming immediately on the heels of its biggest Election Day rally on record in the previous session.

Selling hit across the board, with shares of big manufacturers, including Boeing, as well as banks, technology companies, home builders, retailers and energy companies among the biggest casualties.

And Thursday could be even uglier after Cisco Systems Inc , a technology bellwether, said after the close of regular trading that fallout from the United States had now spread to key markets abroad and its revenue could fall as much as 10 percent in the current quarter. It shares slid more than 6 percent after the bell to $16.25, down $1.14 from their Nasdaq close at $17.39.

Investors worry that the new administration won't be in a position to act fast enough to avert a deep economic downturn.

"Even though there's a lot of enthusiasm and a lot of excitement around the new president, I think it's going to be very difficult for anything quick to happen," said Dean Barber, president of investment firm Barber Financial Group in Kansas City.

"Today we just had reality set in that ... we're still losing jobs and we still have consumer spending at very low levels and we are heading into a holiday season that looks like it could be one of the worst."

The Dow Jones industrial average slid 486.01 points, or 5.05 percent, to 9,139.27. The Standard & Poor's 500 Index plunged 52.98 points, or 5.27 percent, to close at 952.77. The Nasdaq Composite Index lost 98.48 points, or 5.53 percent, to 1,681.64.

Grim economic news included a report that showed deep cuts in employment by private employers in October and data that showed the vast service sector contracted sharply last month as the worst financial crisis in 80 years roiled the world's largest economy.

Jet aircraft manufacturer Boeing sank 6.9 percent to close at $49.55 on the New York Stock Exchange, making it the second-heaviest drag on the Dow and ranking only behind Exxon Mobil Corp, whose shares tumbled 4.9 percent to $73.69, while rival Chevron lost 4.2 percent to $74.88.

The slide in energy shares was also precipitated by a sharp drop in oil prices on fears that an economic downturn will hurt energy demand. December crude fell $5.23, or 7.42 percent, to settle at $65.30 a barrel on the New York Mercantile Exchange.

On Nasdaq, the stock of iPhone and iPod maker Apple was the top drag, down almost 7 percent at $103.30.

Shares of Cisco, a maker of equipment that forms the backbone of corporate technology networks, dropped 5.1 percent to $17.39 on Nasdaq. After the bell, the stock slid to $16.25.

Financials weighed on the S&P 500, with shares of Morgan Stanley ending down almost 10 percent at $17.06, and those of Bank of America down more than 11 percent at $21.75. The S&P financial index fell 8.8 percent.

Steelmakers Nucor Corp and U.S. Steel Corp tumbled after Arcelor-Mittal, the world's largest steelmaker, forecast a weaker fourth quarter, slashed output and froze growth plans.

Nucor plunged 10.5 percent to $35.50, while U.S. Steel tumbled 8.3 percent to $37.75, both in NYSE trading.

Among home builders, luxury home builder Toll Brothers plunged nearly 10 percent to $20.73, while among retailers, Wal-Mart Stores , a Dow component, fell 3.6 percent to $54.13.

All 30 Dow components ended in the red.

A report from ADP Employer Services showed private employers made their deepest job cuts in six years last month and companies' planned layoffs surged to their highest in nearly five years.

The Institute for Supply Management said the U.S. service sector contracted sharply in October.

Investors were also nervous ahead of Friday's government data on October non-farm payrolls. Economists polled by Reuters have forecast a loss of 200,000 jobs in October.

Trading was muted on the New York Stock Exchange, with about 1.31 billion shares changing hands, below last year's estimated daily average of roughly 1.9 billion, while on Nasdaq, about 2.21 billion shares traded, slightly above last year's daily average of 2.17 billion.

Declining stocks outnumbered advancing ones by a ratio of about 4 to 1 on both the NYSE and the Nasdaq.

(Additional reporting by Leah Schnurr; Editing by Jan Paschal)

Loki
Thursday, November 6th, 2008, 10:42 PM
Well, do all you think Obama responsible for shattering the stock market record?

It is tempting to think so, but no. The stock market, and the current crisis, has as little to do with George Bush as Barack Obama.

The market has had an amazing rally in the run-up to the election (after hitting record lows), and a strong pullback after the election was widely expected -- whether McCain or Obama had won.

A new administration won't be able to solve America's financial woes in a couple of months. There is a deep recession ahead of us, possibly even a depression. Bear markets can take a few years to play out, I don't think we're halfway through this one yet. We will reach new lows in the stock market by early next year.

Hanna
Friday, November 7th, 2008, 04:45 PM
It is tempting to think so, but no. The stock market, and the current crisis, has as little to do with George Bush as Barack Obama.

The market has had an amazing rally in the run-up to the election (after hitting record lows), and a strong pullback after the election was widely expected -- whether McCain or Obama had won.

A new administration won't be able to solve America's financial woes in a couple of months. There is a deep recession ahead of us, possibly even a depression. Bear markets can take a few years to play out, I don't think we're halfway through this one yet. We will reach new lows in the stock market by early next year.

Maybe, but I'm going to repute your theory.... If you read this report ''The Presidential ELECTION CYCLE Vincent A. Colicchio, CFA, MBA U.S. Global Investors, Inc'' Then it clearly demonstrated in 1939 Roosevelt (D) War clouds, Dow off 2.9 percent, however the current situation with Obama is about -5,05 percent then you could sum up saying its a biggest drop in 75 years. The data also stated
''The only severe loss in a pre-
presidential election year going back 84 years occurred in 1931 during the Depression'' But you read more in this report it indicated during the 1948 the Truman era there's drop in S&P with -4.15 still Obama keep the record.

So you'll find more additional interesting sources in Pre-Presidential Election Years: No Losers in 64 Years -Stock Traders Almanac 2003. Happy reading.

Loki
Friday, November 7th, 2008, 04:59 PM
Maybe, but I'm going to repute your theory.... If you read this report ''The Presidential ELECTION CYCLE Vincent A. Colicchio, CFA, MBA U.S. Global Investors, Inc'' Then it clearly demonstrated in 1939 Roosevelt (D) War clouds, Dow off 2.9 percent, however the current situation with Obama is about -5,05 percent then you could sum up saying its a biggest drop in 75 years. The data also stated But you read more in this report it indicated during the 1948 the Truman era there's drop in S&P with -4.15 still Obama keep the record.


I don't dispute this ... but the fact is, we're currently in the worst bear market since the great depression in 1929, and to think a John McCain victory would have done any better than an Obama one on the market, is just wishful thinking. The financial system will need years to recover from this bear market, if not decades.

Loki
Thursday, November 13th, 2008, 09:02 PM
The Dow has just rallied 900 points in the last 3 hours ...

http://ichart.finance.yahoo.com/z?s=^DJI&t=1d&q=c&l=on&z=l&p=s&a=v&p=s

Hanna
Thursday, November 13th, 2008, 10:27 PM
The Dow has just rallied 900 points in the last 3 hours ...

http://ichart.finance.yahoo.com/z?s=^DJI&t=1d&q=c&l=on&z=l&p=s&a=v&p=s

Grim picture lot worse than what I thought.