Nov 04 2006
U.S. stocks fell on Friday, with the Dow posting its longest losing streak in more than a year, as jobs data showing strength in the economy raised worries the Federal Reserve may need to resume raising interest rates.
The Dow closed below 12,000 for the first time since October 18. A jump in oil prices contributed to negative sentiment. December crude oil settled at $59.14 a barrel, up $1.26, or 2.2% on the session.
Labor Department data showed the U.S. unemployment rate fell to its lowest in more than five years. “Some investors were hanging on the idea that the Fed would cut rates soon, which would give an extra boost to stocks. But that possibility no longer seems to be sustainable,” said Michael Metz, chief investment officer of Oppenheimer & Co. in New York.
Chart-wise, if the indicator is anything to goes by, it seems the down-trend is intact with a smooth down-slope. Most of the market analysts said it’s time for stocks to come down. Hence will this downtrend continue ? Or could it be all the fund managers decided to push down the overall market in order for them to buy low ? I would think the overall market is still bullish but on a temporary downtrend.
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November 4th, 2006 by financetwitter
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