Weaker job growth and a rise in the unemployment rate enabled Wall Street to take the 3-digit plunge again Friday. The Dow fell 256.54 (1.96 percent) to 12,800.18, below the psychological 13,000 points while the Standard & Poor’s 500 index declined 35.53 (2.46 percent) to 1,411.63. Meanwhile The Nasdaq composite index dropped 3.77 percent or 98.03 points to 2,504.65, thanks to the downgrade of Intel Corp.
United States Labor Department reported that employers raised payrolls by only 18,000 and that the nation’s unemployment rate rose to its highest level since November 2005. A weakening job market will hurt consumer spending and this got investors worried. Previously when the sub-prime crisis hit the stocks market, investors were using the growing employment to argue that as long as people were getting jobs consumption would continue to spur the economy. Employment was the last fort and now with the weakness report, investors are not too sure.
Baidu.com, Inc. (Nasdaq: BIDU, stock) plunged $14 to $361 a share while both Google Inc. (Nasdaq: GOOG, stock) and Apple Inc. (Nasdaq: AAPL, stock) suffered the same fate. Google skidded $28 to $ 657 a share while Apple erased $14.88 to $180 a share. This is indeed good news to investors or traders who wish to have positions in Apple but would like to wait for consolidation to kicks in. So now you’re seeing with your own eyes the Apple stock which is at the current unbelievable attractive level.
While I do not know if the technology stocks will continue to take the beating, I do know it’s time to accumulate in stages. Remember that you can never buy at the lowest and sell at the highest. If you’re mouth-watering looking at Apple and Google’s prices, why not take some actions. On the side note, next Monday’s opening bell will not be a nice view to the other regional stocks markets including KLSE.
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January 5th, 2008 by financetwitter
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Aiyoh you dunno our malaysia market already decoupled from world market meh? Now our market follow CPO market, no more follow US market. That was why a smart Chinese man tell governement to merge all PNB plantation company to Sime Darby. Chinese are smart!