Tag Archives: Google
All we can say is, “Wow!” Citigroup announces a bigger-than-expected $5.1 billion loss. Oil prices hit an all-time high. And the stock market skyrockets for one of its best weekly gains in the past five years.
The mercury is climbing, blossoms are bursting out — so does Wall Street finally get to celebrate a springtime of its own? For eight long months now, a ferocious credit crunch, unprecedented since the Great Depression, has trapped investors in a deep freeze. Not only stocks and real estate, but even some of the (reputedly) safest bonds and money market instruments fell victim to the Arctic blast.
Happily, I’m detecting hints, here and there, of a thaw. It’s taking a lot longer than I had hoped, but we will see the end of this new Ice Age. As a balmier climate sets in, we can look forward to healthy markets again — and a return to the steady, consistent profits we enjoyed from 2003 to around mid-2007.
Don’t be evil! We’ll all be better off if Federal Reserve Chairman Ben Bernanke takes his cue from the Google slogan and leaves interest rates unchanged next Tuesday. We strongly believe that another rate hike at this point would amount to a serious mistake.
Seasonal headwinds are picking up on Wall Street. We got a snappy bounce in the stock market Tuesday as traders came back in high spirits from Independence Day. (Anytime terrorists don’t strike on a national holiday, investors seem relieved.) But today, with oil prices vaulting to a new record, the market backtracked, shedding most of Tuesday’s gains.
What? Google’s IPO jumps almost 20% during the first day’s trading and NASDAQ still drops? Something doesn’t compute. Or does it?
I think the little stock rally we’re in has further to run. If oil prices break down, it could carry well into September. But NASDAQ’s failure to respond to the buoyant Google offering is just one more yellow flag along the road.