Dow Jones shares shot up nearly15% in trading Friday on the heels of the news that the company's controlling shareholders will consider bids from News Corp. and different possible suitors for the parent of the Wall Street Journal.
Shares in Dow Jones climb well past their recent 52-week high of $58.47, closing Friday at $61.20, up $7.89 on much higher-than-usual volume of trading. The unsolicited $5 billion bid that News Corp. made for Dow Jones last month valued the company at $60 a share.
The Bancroft clan that controls Dow Jones did a surprise about-face on Thursday after antecedently rejecting News Corp.'s offer. The Bancrofts said in a statement that they would meet with News Corp. chief Rupert Murdoch and other potential suitors as they consider various options for the company. No timetable was specified for the meeting with Murdoch. A News Corp. spokesman declined comment Friday on whether a meeting been set.
The Bancrofts' surprising replace of heart move spurred speculation that the release of the statement was designed to spur other bidders to make a formal offer for the company. In Thursday's statement, the clan that has controlled Dow Jones since 1902 stressed that its overriding interest was to assure that potential acquirers of the company would maintain "the level of commitment to editorial independence, integrity and journalistic freedom that's the hallmark of Dow Jones."
Dow Jones shares up on bid interest...
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Dow Jones Ind. Ave. and S&P 500 Test Equal Move Targets at Lows
Labels: taatoo |
Dow Jones Ind. Ave. and S&P 500 Test Equal Move Targets at Lows
(Note: Unless otherwise stated, the index action described below relates to the EMini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.)
Hey gang! First off, I want to thank completely of you that made it out to my presentation on Monday evening in New York! It was quite a turn out! I'll be sending out a copy of the power point for the class this week, so keep an eye out for it!The market finally got past its afternoon sluggishness this week. In fact, the swings throughout the session over the past several days have been extremely nice for daytraders. The 5 minute moves have been smooth and without a great deal of chop on either the up or downside. Monday kicked off with a gap up, but selling hit suddenly out of the open and a strong downtrend took hold. This trend continued throughout the session and took the indices into the upper end of the daily target zone we had been following over the past several weeks. This amounted to an equal move zone hitting on the daily time frame in the S&P 500 and Dow Jones Industrial Average.
On Tuesday the markets rebounded with the strongest gains in over a month. The S&Ps had tested the November lows the day before and this served as a strong technical support level which fueled speculation of a low being established. We are still ahead of the typical reversal duration in the markets though, so I wouldn't mind just one more minor test of lows, into perhaps the 7000 level on the Dow. March tends to be a much stronger month for market reversals, as well as breakouts from trading ranges.
The Dow Jones Industrial Average ($DJI) ended lower by 80.05 points, or 1.1%, at 7,270.89 on Wednesday. The index's down 16.2% so far this year. The early morning losses on Wednesday were extended by poor housing data in which the National Association of Realtors reported that existing home sales fell 5.3% in January. This was a much stronger decline than had been anticipated and prices fell near 6 year lows. The S&P 500 ($SPX) fell 8.24 points, or 1.1%, and closed at 764.90. The Nasdaq Composite ($COMPX) lost 16.40 points, or 1.1%, on Friday. It closed at 1,425.43.
Dow Jones Etf...Basics Of Etf Trading...
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ETFs, or exchange-traded funds, were first introduced to the market in the early 1990's as well as are used as an investment vehicle, traded similar to stocks or shares on stock exchanges. These funds are often attractive to investors caused by their tax efficiencylow costs and similarity to stocks. ETFs have been called the most innovative investment medium of the last twenty years by 67% of investment professionals in March 2008. Of these professionals, 60% reported that ETFs have significantly changed how they build investment portfolios. Perhaps the most widely well-known ETF is called the Spider (SPDR) and tracks the S&P 500 index, trading under the SPY symbol.
ETFs experience price changes during the course of a trading day as they are bought and sold, but tend to trade at the same price as the net asset value of its underlying assets along the period of a trading day, and holds assets e.g. bonds or stocks. Most ETFs track / monitor a financial index, for example the Dow Jones Industrial Average.
Exchange-traded funds maintain completely the features of ordinary stock -- for example short selling, options and limit orders -- but provide well-to-do diversification, tax efficiency of index funds and low expense ratios. Unlike mutual funds, it does not have its net asset value (NAV) calculated every day. Some investors tend to invest in ETF shares as long-term investments because the able to be economically acquired, held and disposed of, while other investors prefer to trade ETF shares regularly in order to employ market timing investment strategies.
Some criticism has been given of ETFs. A leading issuer of index funds, The Vanguard Group, has argued that ETFs do not provide enough diversifications, that trading expenses decrease the potential return for investors. ETFs that tracked domestic indexes generally experience less than 2% variation on closing price, but variations might be much better when ETFs track foreign indexes. This is why monitoring of commodities is so important.
In late 2008 it was reported that a few lightly traded ETFs had frequent deviations of more than 5%, and in a select number of cases greater than 10%, though the typical deviation is not much more than 1%. The largest deviations in trade occur just after the opening of market. Several critics have claimed that ETFs have been used to manipulate market prices and been used in short selling, which according to some contributed to the 2008 market collapse.
Dow Jones Tip Sheet: Rockwater Hedge Reckons Municipal Bonds Are Hot-2
Labels: taatoo |Because the fund still gets 5% interest on the whole value of the municipal bond - plus
the additional yield from leverage - and only has to pay 3% on the short-term notes,
industry returns are between 10% and 12%, says Williams.
This compares with annual returns of 5.99% in 2004 and 5.60% in 2005 for Chicagobased
Hedge Fund Research's Fixed Income Arbitrage Index, which incorporates a
variety of arbitrage strategies in fixed-income instruments.
All returns are net of fees. Rockwater declined to disclose specific fees, but fund-ofhedge-
funds managers typically charge annual management fees of between 1% and 2%
and an incentive, or performance, fee of 20%. In addition, investors pay similar fees to
the underlying hedge-fund managers.
Municipal bond arbitrage's still early territory for hedge funds, and while lack of
competition has been good for returns, Williams isn't concerned about new players
entering the field.
"With 55,000 state, county and city government issuers across the U.S.
and unlikely to pull back any time soon, there will be plenty of municipal bonds
available," he says.
At the same time, demand for very short-term municipal paper is high because the
bonds are typically issued for long terms - anything from 20 to 40 years, he says.
The yield curve for these bonds is probably to remain steep even as the Federal Reserve
has raised short-term interest rates, which it did most latterly March 28.
"While the Fed's actions might put pressure on the municipal yield curve to flatten,
historically this hasn't happened and the municipal yield curve has maintained its positive
slope," says Williams.
Once the company builds a track record over a couple of years, Rockwater Hedge plans
on attracting institutional investors interested in this type of instrument, namely casualty
and property insurers, who currently make up the 30% balance of the direct municipal
bond market.
Williams declined to comment on the size of his fund or its performance citing
regulatory concerns and because, at the moment, investment is only by private
placement to high-net-worth every individuals and is not accessible directly to the public.
(Marietta Cauchi covers hedge funds, private equity and mergers and acquisitions for
Dow Jones Newswires.)
Dow Jones Tip Sheet: Rockwater Hedge Reckons Municipal Bonds Are Hot-1
Labels: taatoo |NEW YORK (Dow Jones)--Rockwater Hedge LLC's making a bet on municipal bonds.
The lure was irresistible, according to Bryan Williams, managing principal of the
Newport Beach, Calif.-based fund comprised of hedge funds. Just last year, Williams
morphed from being a conventional advisor of high-net-worth individuals into being a
hedge fund manager.
"Never in 25 years in the money-management business had I come across such a timely
and compelling strategy," says Williams who picked municipal bond arbitrage out of a
smorgasbord of hedge-fund strategies because of its potential for persistently high
returns.
"Investors need an alternative. The bull retail in bonds is finishing, there are single-digit
expectations for equities, and there's a load of money in cash," Williams says.
Not generally regarded as exciting investments, the $2 trillion municipal bond market
has been traditionally dominated by individual holders - either through direct investment
or via mutual funds - who comprise 70% of the municipal bond market.
Over the last four to five years, and increasingly over the last two years, however, savvy
hedge funds have been moving into municipal bonds looking for returns that have
become more difficult to find elsewhere.
Rockwater invests its clients' money in some of the 25 individual hedge funds which,
Williams believes, comprise the total number of funds dedicated to municipal bond
arbitrage out of about 8,600 hedge funds and funds of hedge funds, according to data
from Chicago-based Hedge Fund Research.
Money is made by splitting a long-term, triple-A-rated municipal bond into two
certificates: a floating-rate short-term instrument the fund sells to money-market retail
investors and on which it pays 3% interest, and a residual long-term piece which the
fund retains. Leverage is created by issuing more floating-rate certificates than residual
certificates.
The fund also shorts top-quality corporate bonds to hedge against the risk of interest
rates going up on its long-term piece of the municipal bond.
News Corp, Dow Jones agree on WSJ editorial integrity: source
Labels: taatoo |News Corp. has reached a verbal agreement with Dow Jones to safeguard the editorial integrity of the Wall Street Journal, removing a major hurdle in its hostile takeover bid, a source close to the negotiations said Tuesday.
The issue of editorial independence of the heading US business newspaper has been a key obstacle in the five-billion-dollar unwelcome offer made last month by Rupert Murdoch's sprawling media group.
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The Wall Street Journal reported Tuesday many "open items" remained unresolved, but the two sides had essentially forged an agreement.
The source familiar with the talks told AFP the deal was not yet final.
"We're close to agreement, but no agreement has been put down on paper," a person familiar with the situation told AFP.
"Are the parties producing progress? Absolutely. An ad hoc committee has been meeting with their opposite numbers from News Corp. for several days now and their discussions are continuing.
"Progress's being made on editorial integrity and the independence front," said the person, who requested anonymity.
Any takeover agreement requires the approval of the Bancroft family, the controlling shareholders of Dow Jones, one of America's most storied media firms.
Union officials, opposed to the News Corp. bid, said the Bancrofts still have the ultimate say on any deal.
"This group won't be sold unless the Bancroft family accepts," Steve Yount, of the IAPE union which represents Dow Jones & Co. employees, told AFP.
"The family gave a certain set of conditions. And I have seen no sign that they changed their position."
The Bancrofts originally rebuffed Murdoch's takeover approach in May, citing concerns about editorial independence, but industry analysts say the family might be warming to News Corp.'s bid which is valued at 60 dollars per Dow Jones share.
Some Wall Street Journal journalists are opposed to a tie-up with News Corp., claiming Murdoch has interfered in the editorial decisions of a little of of his media outlets. Their stance appears to backed by some members of the Bancroft family, according to US media reports.
The ad hoc committee, which includes Bancroft representatives, has led some of the ongoing negotiations with News Corp. since Murdoch met with several family representatives earlier this month in a bid to allay their concerns, according to the person familiar with the situation.
Murdoch had proposed setting up a system that would guarantee the editorial independence of the Journal similar to the one used by the Times newspaper of London, one of his high-profile British assets, which his media empire acquired in 1981. The Times has a special committee which is empowered to review the appointment of an editor-in-chief.
Dow Jones shareholders reportedly have been putting pressure on the Bancrofts to accept Murdoch's offer due to of the handsome premium News Corp. is offering for the company.
The Bancrofts have nonetheless signaled they will entertain takeover offers from other achievable bidders, although there are no other well-known bidders at this stage.
US conglomerate General Electric said last week that it would not be teaming up with Britain's Pearson, the owner of the Financial Times, to mount a possible takeover bid for Dow Jones, dashing the hopes of some Dow Jones employees opposed to News Corp.'s bid.
Dow Jones average...
Labels: Dow Jones |stock price average computed by Dow Jones & Company, Inc. The averages are among the most commonly used indicators of general trends in the prices of stocks and bonds in the United States. Dow Jones & Company, a financial news publisher founded by Charles Henry Dow and Edward D. Jones, began computing a daily industrials average in 1896, using a list of 12 stocks and dividing their total price by 12. The list of stocks has since been broadened, and the divisor has been adjusted to compensate for stock splits, stock substitutions, and significant dividend changes. Thus, the averages are not arithmetical means but averages meant to indicate general market price trends. The most commonly quoted is the Dow Jones Industrial Average, which is based on the prices of 30 industrial stocks. Other Dow Jones averages include one based on 20 transportation stocks, one based on 15 utility stocks, a composite based on 65 stocks, and several bond averages. Other popular gauges of the American securities markets are the S&P 500 and the Russell 2000 indexes.
Dow Jones Industrial Average...
Labels: Dow Jones |Daily Market Commentary for March 2, 2009 from Millennium-Traders.Com
For the first time since 1997 the DOW moved below 7000, closing the session on the final bell at 6,763.29. (read more)
http://www.millennium-traders.com/news/newscommentary.aspx
Economic data released today:
Core PCE Price Index:
January PCE Core Price Index rose 0.1% Rate on the month; January PCE Core Price Index rose 1.6% on the year; January PCE Price Index rose 0.2% Rate on the month; January PCE Core Price Index rose 0.7% on the year.
Personal Spending:
U.S. Personal Income rose by 0.4% in January versus consensus of a drop by 0.3%; U.S. Personal Spending rose by 0.6% in January versus consensus of an increase by 0.4%; U.S. December Personal Income Unrevised at a drop by 0.2%; U.S. December Spending Unrevised at a drop by 1.0%.
ISM (Institute for Supply Management) Manufacturing Index:
U.S. February Mfg Business Index came in at 35.8 versus January reading at 35.6; U.S. February Mfg Business Index expected to come in at 34.0; U.S. February Prices Index came in at 29.0 versus January reading at 29.0; U.S. February Employment Index came in at 26.1 versus January reading at 29.9; U.S. February New Orders Index came in at 33.1 versus January reading at 33.2; U.S. February Production Index came in at 36.3 versus January reading at 32.1; U.S. February Inventories Index came in at 37.0 versus January reading at 37.5; U.S. ISM Survey 'Generally Pessimistic' about 2009 rebound; U.S. ISM: Factories contract at 'Rapid Rate' in February.
Construction Spending:
U.S. Construction Spending down 3.3% in January compared to consensus of a drop by 1.8%; December Construction Spending Revised to a drop by 2.4% from a drop by 1.4%.
At the NYSE closing bell on the New York Stock Exchange, here is how the major world indices and major U.S. stock indices ended the trading session on the world markets as well as the emerging markets including the stock market closing bell price:
DOW (Dow Jones Industrial Average) triple digit loss of 299.64 points to end the trading session at 6,763.29
NYSE (New York Stock Exchange) triple digit loss of 256.05 points to end the trading session at 4,360.98
National Association of Securities Dealers Automated Quotations (NASDAQ) loss of 54.99 points to end the trading session at 1,322.85
S&P 500 (SPX) loss of 34.27 points to end the trading session at 700.82
BEL 20 (BEL20) gain of 86.02 points to end the trading session at 1,610.56
CAC 40 (CAC40) triple digit loss of 121.02 points to end the trading session at 2,581.46
FTSE100 (UKX100) triple digit loss of 204.26 points to end the trading session at 3,625.83
NIKKEI 225 (NIK/O) triple digit loss of 288.27 points at the end the trading session at 7,280.15
New York Stock Exchange (NYSE) stock market indicators for the trading session today:
Advanced stock prices 211, declined stock prices 2,943, unchanged stock prices 53, stock prices hitting new highs 4 and stock prices hitting new lows 632. NYSE quotes for volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the New York Stock Exchange stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: ProShares Ultrashort S&P 500 (NYSE: SDS) stock price gained 8.70 points on the trading session, high on the trading session $108.32, low on the trading session $101.51, with a closing stock price at $107.42; Apache (NYSE: APA) stock price shed 6.74 points on the trading session, high on the trading session $58.58, low on the trading session $52.09, with a closing stock price at $52.35; FTI Consulting (NYSE: FCN) stock price gained 4.84 points on the trading session, high on the trading session $42.36, low on the trading session $40.31, with a closing stock price at $41.38; State Street (NYSE: STT) stock price shed 3.42 points on the trading session, high on the trading session $24.41, low on the trading session $21.55, with a closing stock price at $21.85; Alcon (NYSE: ACL) stock price shed 6.02 points on the trading session, high on the trading session $80.89, low on the trading session $76.03, with a closing stock price at $76.34.
National Association of Securities Dealers Automated Quotations (NASDAQ) stock market indicators for the trading session today:
Advanced stock prices 332, declined stock prices 2,532, unchanged stock prices 100, stock prices hitting new highs 3 and stock prices hitting new lows 588. NASDAQ quotes, volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the NASDAQ stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: Woodward Governor Company (NasdaqGS: WGOV) stock price shed 4.94 points on the trading session, high on the trading session $15.20, low on the trading session $10.98, with a closing stock price at $12.28; Syntel (NasdaqGS: SYNT) stock price shed 1.93 points on the trading session, high on the trading session $19.09, low on the trading session $17.76, with a closing stock price at $18.41; First Solar Incorporated (NasdaqGS: FSLR) stock price shed 0.37 points on the trading session, high on the trading session $107.50, low on the trading session $100.90, with a closing stock price at $105.37; Google (NasdaqGS: GOOG) stock price shed 10.83 points on the trading session, high on the trading session $340.70, low on the trading session $326.00, with a closing stock price at $327.16; Baidu (NasdaqGS: BIDU) stock price shed 11.32 points on the trading session, high on the trading session $147.11, low on the trading session $136.26, with a closing stock price at $137.00.
Market trends on the American Stock Exchange (AMEX) and stock market indicators for the trading session today:
Advanced stock prices 141, declined stock prices 461, unchanged stock prices 44, stock prices hitting new highs 5 and stock prices hitting new lows 56.
Chicago Board of Trade Futures Market for the day, at time of this posting:
E-mini S&P 500 (ES) Mar 09: End of trading session price 705.50; Change for the trading session -28.75
E-mini NASDAQ-100 (NQ) Mar 09: End of trading session price 1,088; Change for the trading session -29
E-mini DOW $5 (YM) Mar 09: End of trading session price 6,808; Change for the trading session -244
E-mini S&P MidCap 400 (MF) Mar 09: End of trading session price 437; Change for the trading session -11.90
E-mini S&P Small Cap 600 (HS) Mar 09: End of trading session price 7,185; Change for the trading session -180
World Currencies for the Forex Market, for Forex Trading by active Forex Traders, at time of this posting:
Euro 0.7952 to U.S. Dollars 1.2576
Japanese Yen 97.250 to U.S. Dollars 0.0103
British Pound 0.7118 to U.S. Dollars 1.4048
Canadian Dollar 1.2907 to U.S. Dollars 0.7748
Swiss Franc 1.1753 to U.S. Dollars 0.8508
COMMODITY MARKETS:
Energy Sector - Nymex:
Light Crude (April 09) shed $4.61 on the trading session for a closing price of $40.15 per barrel ($US per barrel)
Heating Oil (April 09) shed $0.12 on the trading session for a closing price of $1.15 a gallon ($US per gallon)
Natural Gas (April 09) gained $0.05 on the trading session for a closing price of $4.15 per million BTU ($US per mmbtu.)
Unleaded Gas (March 09) shed $0.09 on the trading session for a closing price of $1.29 a gallon ($US per gallon)
Metals Markets - Comex:
Gold (April 09) shed $2.50 on the trading session for a closing price of $940.00 ($US per Troy ounce)
Silver (May 09) shed $0.04 on the trading session for a closing price of $13.07 ($US per Troy ounce)
Platinum (April 09) shed $9.40 on the trading session for a closing price of $1,062.10 ($US per Troy ounce)
Copper (May 09) shed $0.02 on the trading session for a closing price of $1.52 ($US per pound)
Livestock and Meat Markets - Chicago Mercantile Exchange (cents per lb.):
Lean Hogs (April 09) shed 0.63 on the trading session for a closing price of 60.28
Pork Bellies (May 09) shed 0.73 on the trading session for a closing price of 79.10
Live Cattle (April 09) shed 1.98 on the trading session for a closing price of 83.95
Feeder Cattle (April 09) shed 1.53 on the trading session for a closing price of 92.35
Other Commodities - Chicago Board of Trade (cents per bushel):
Corn (May 09) shed 8.75 on the trading session for a closing price of 350.25
Soybeans (May 09) shed 28.00 on the trading session for a closing price of 844.00
BOND MARKET:
2 year Bond Closing price 99 31/32, change 6/32, Yield 0.88, Yield change -0.09
5 year Bond closing price of 100 6/32, change 23/32, Yield 1.83, Yield change -0.15
10 year Bond closing price 98 29/32, change1 6/32, Yield 2.87, Yield change -0.14
30 year Bond closing price 97 29/32, change 1 20/32, Yield 3.61, Yield change -0.09
Cisco today joins Dow Jones industrial average....
Labels: Dow Jones |Cisco Systems today joins the elite circle of 30 blue-chip businesses that make up the Dow Jones industrial average, a move that may make it easier for the San Jose company to attract investors — at least initially.
Plus, in joining Intel and Hewlett-Packard on the list, Cisco is sure to get a boost in prestige.
But more than anything, experts say, the decision to replace General Motors with Cisco is recognition that technology is a primary innovator and spark plug of the nation's economy. And that trend is turning heads everywhere from Wall Street to Washington.
"It signals the ascendancy of Silicon Valley and high tech," said Stephen Levy of the Center for Continuing Study of the California Economy. "We're seeing older industries and companies be replaced by a sector that has substantial long-term growth prospects."
Technology already has the attention of President Barack Obama, who is actively promoting such ideas as smarter electricity grids and computerized health records. And now, with Cisco, HP and Intel on the fabled stock index, along with IBM and Microsoft, elected officials may listen even more closely to the needs of Bay Area businesses, said Jim Wunderman, CEO of the Bay Area Council.
"It certainly cements the tech industry in Silicon Valley as an integral part of the American economy," he said. "From a public policy basis, it has some impact. I think it makes a stronger case in Washington and maybe in
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the state capitals."
Since its debut in 1896, the Dow Jones industrial average has predominately featured so-called smokestack industries, from U.S. Rubber and Bethlehem Steel to Standard Oil and American Smelting. However, reflecting a major shift in the nation's economy, those types of businesses have gradually given ground to firms offering products centered on computers, software and communications technology.
Officials with the federal Bureau of Economic Analysis say it's hard to say how much of the gross domestic product is represented by sales of such technology to consumers and the government. But business purchases alone of such goods represented about 3 percent of the GDP in 2008, compared with less than 1 percent in 1968. And one of the biggest up-and-comers in the tech field is Cisco, which was founded in 1984 and earned $8 billion on sales of nearly $40 billion during its most recent fiscal year.
Since the June 1 announcement that Cisco will replace GM, a part of the index for 83 years, the Internet-networking equipment maker's stock price has risen more than 7 percent, closing Friday at $19.87.
That kind of increase is common after companies are first selected for the list, in part because some big institutions invest heavily in firms that are on such indexes, said Sybille Reitz, a Dow Jones spokeswoman.
"It certainly does increase your visibility in the market," she said. "You're included among the bluest of the blue-chip companies in the United States."
But the share-price bump frequently is temporary, she said, adding, "at the end of the day, it doesn't mean anything to their business or to their long-term stock price."
Although HP executives declined to discuss how they've been affected by being placed on the list in 1997, Intel, which got on two years later, hasn't seen much of an impact, according to spokesman Chuck Mulloy.
"By and large, it's more prestige than anything substantive," he said.
John Roberts, director of Stanford's Center for Global Business and the Economy, also expressed skepticism that being on the index would mean significantly more business for Cisco or Silicon Valley. After all, he said, "very few people can tell you whether a given company is in the DJ30. I certainly cannot."
Still, in a prepared statement, Cisco officials said they are pleased at their inclusion.
Noting that today marks "the first time in nearly 10 years that a technology company has been added to the Dow," the company said, "We are honored with this recognition of our continued strong performance."
Dow Jones Industrial Average More Relevant Now.....
Labels: Dow Jones |It was only a matter of time, and it has finally happened, General Motors has filed for bankruptcy and has been taken out of the Dow Jones Industrial Average. On the same day it was announced that Citigroup would be removed from the Dow because of the government’s massive ongoing stake in the company. Who are the two replacements for General Motors and Citigroup? The two companies that will be moving into the Dow Jones are Cisco Systems and Travelers. Travelers will essentially be replacing Citigroup, which it was a part of just a few years ago, so that replacement is certainly quite ironic. Cisco’s replacement of General Motors signals a fairly major change in the overall weighting of the Dow Jones Industrial Average, moving it more towards technology and less toward old industrials and cyclical.
One could make a very solid case that the Dow Jones Industrial Average has just become much more relevant because of these changes, which will officially occur on June 8th. Getting rid of these two companies that were weighing down the Dow because of their terrible position in today’s economy in itself is a major boost, and the two companies that are moving into the Dow both seem to be doing quite well. Travelers Company is an insurance company that has been doing much better than most in its industry, and has managed to keep its losses to a minimum during this economic downturn. Cisco Systems is a leading technology company that is storming around the world with its routers and networking equipment and other odds and ends to help people and businesses connect all around the world.
Over the past few years the Dow Jones Industrial Average has lost a bit of its luster with many market analysts and strategists because they believed it was behind the curve. The moves that are now being made will be a major step in the direction of making the Index a very viable one with a solid mixture of healthy companies from lots of industries. Technology is clearly going to be needed in the future for advances, so the fact that the Dow will now have five technology stocks will likely be a long-term boost to the index. Also, the movement of two companies into the index that have a very solid balance sheet and are loaded with cash is another sign that the Dow is becoming more modern and relevant.
The S&P 500 is a much broader index than the Dow, so it will be difficult to gauge the two against one another, but the Dow has certainly made some major inroads into becoming a market leader once again. Investors who have previously shunned things such as Dow Jones Index Funds or ETF’s that track the Dow and its movement may want to rethink their moves in the coming quarters and consider making it a part of their portfolio. It may be difficult to regain all the luster that the Dow has lost in one day, but the changes and replacements it has made have gone a long way toward improving its reputation.....
Curse of the Dow Jones...
Labels: Dow Jones |When General Motors filed for bankruptcy protection this past week, its 83-year tenure as a fixture within the Dow Jones Industrial Average also came to an end. Faced with the abrupt passing of an economic icon, the stock market rallied; a classic case of selling the rumor (fear of the unknown) and buying the news (increased knowledge of the future). This works in the reverse for good news.
Citigroup’s account in the DOW was also closed by Dow Jones. Replacements Cisco Systems (CSCO) and Travelers (TRV) have been given a mixed blessing, however, because over the last decade when stocks are added to the Dow it has generally coincided with a top in the stock’s price.
Meanwhile, a number of Chinese small-caps in our Consensus system have recently caught the fancy of investors, among them China Green Agriculture (CGA), which makes a special type of fertilizer you never heard of, but need to know about. Fluor (FLR) is a beaten down global infrastructure play that garnered more than $5 billion of new orders in the most recent quarter. Lastly, we profile Satyam Computer Services (SAY), a fallen angel we think is worth a gamble.
Detail
One by one, the icons of the economic hegemony of the West are toppling. The collapse of the Twin Towers was a literal tragedy, but also a symbolic event that marked the end of the myth of the invulnerable West. The implosion of the top-tier brokerages in 2008 cracked the financial foundations not only of Wall Street, but also revealed a pervasive Ponzi-like debt structure that has crippled many mainstream institutions.
This past week, the wheels came off the enterprise that for much of the 20th century was the world's largest and most profitable. When General Motors filed for bankruptcy protection on Monday, however, the market rallied on the news. More about that in a minute.
Government Motors
General Motors has been the world’s largest car maker since 1932. As the U.S. government will own 60% of the downsized company and Canada will own 11%, the moniker Government Motors is likely to stick. Clearly the “bankruptcy” is being handled with kid gloves. It is actually part divestiture and restructuring, part nationalization and part bailout, as it will cost taxpayers around $40 billion.
One reason the market was able to rally in the face of the GM bankruptcy (apart from having correctly anticipated it) is that although automotive manufacturing accounts for the majority of manufacturing jobs in the U.S. (4.5 million), manufacturing per se has played a declining role in the U.S. employment picture over the last 30 years. Between 1979 and 2009, U.S. industrial output doubled, but manufacturing labor dropped from 21% of the total to just 9%.
The auto industry is still a key player in the economy, indirectly accounting for perhaps 4 jobs for every position in the industry itself, but in terms of value added, the automotive sector in the U.S. now contributes just 5.5% of total industrial output.
A more important measure of economic health for the U.S. is the Institute for Supply Management’s index of service-related businesses, which make up almost 90% of the economy. The monthly report was issued this week and indicates virtually no improvement in May compared to April. So why is the market rallying in the face of GM’s temporary demise and a dearth of hard data supporting the green shoot hypothesis?
Old News
The simple answer is that the stories that make the headlines are mostly old news to the market. What does the market really pay attention to? The future. In testimony before Congress this week, Fed Chairman Bernanke said he expects “some growth” to return later this year. According to a survey by Bloomberg, most economists agree with the Fed chief and expect the U.S. GDP to expand 0.5% as early as next quarter. This is the “news” the market is trading on. It buys the rumor and sells the facts when the story is positive; it sells the negative rumor and buys the news when the bad news finally arrives. Is this efficient? Perhaps. It is certainly human.
When GM’s bankruptcy was finally confirmed, however, some wheels did turn. Richard Thompson, the editor-in-chief of Dow Jones, quietly announced that GM would be removed from the Dow Jones Industrial Average after 83 years of membership. Only General Electric, which was added in 1907, has been in the venerable index longer.
Curse of the Dow
GM is being replaced in the Dow Jones Industrial average by network hardware maker Cisco (CSCO), not by another auto company such as Ford or Toyota. With respect to the latter company, Mr. Thompson may have missed an opportunity to diversify the index even further by including a foreign-based company that has extensive operations in the U.S. Given that GM is going to be selling its Hummer division to a Chinese car maker, such a move could be viewed as prescient. We certainly expect to see more distressed asset sales to foreign-based companies over the next few years.
But let’s not cry for Toyota. In the last decade, the invitation to join the exclusive Club of Thirty has more often than not marked a significant top in the stock price of the favored company.
Both Microsoft and Intel were plugged into the DJIA in November of 1999 and are now trading far below those levels even after the strongest stock market rally in 75 years. American International Group was added in 2004, never rose much higher and is now 98% below the premium price at which it was added. Pfizer was injected into the DJIA in 2004, which marked a top in Pfizer’s shares. PFE is now 66% lower and bleeding. Bank of America (BAC) became an accredited member in February of 2008, just at the beginning of its historic slide. Shares are now discounted 75%, even after the bounce from the March lows. Kraft Foods was assimilated in September of 2008 and so far that month has marked its peak in price.
But there’s more. In an ironic tortoise and hare tale, Citigroup is also being delisted from the DJIA and will be replaced by Travelers. Citigroup ejected Travelers via a spin off in 2002, as CEO Sandy Weil deemed the stodgy insurance business a leaden liability in his race to conquer the banking world. At first, Weil seemed to have made a savvy choice, as Citigroup shares scampered to a double over the next four years, whereas Travelers’ barely crawled ahead. In the end, however, TRV has a positive net increase today compared to 2002, whereas shares of Citigroup are down 97%. In the end, the spurned tortoise had the last laugh.
Dow Crash.....
Labels: Dow Jones |Daily Market Commentary for October 6, 2008 from Millennium-Traders.Com
Today, the DOW looked as though it was in a race to look just how fast it could dive to new historical depths in excess of 800 points around 2:30 pm Eastern Time. (read more)
http://www.millennium-traders.com/news/newscommentary.aspx
Economic data released today: n/a
At the NYSE closing bell on the New York Stock Exchange, here's how the major world indices and major United States stock indices ended the session on the world retail as well as the emerging markets such as the stock market closing bell price:
DOW (Dow Jones Industrial Average) triple digit loss of 369.88 points on the day to end the trading session at 9,955.50
NYSE (New York Stock Exchange) triple digit loss of 334.03 points to end the trading session at 6,779.43
National Association of Securities Dealers Automated Quotations (NASDAQ) loss of 84.00 points to end the trading session at 1,862.01
S&P 500 loss of 42.34 points to end the trading session at 1,56.89
FTSE All-World excluding U.S. loss of 11.43 points to end the trading session at 174.51
FTSE RAFI 1000 triple digit loss of 175.71 points to end the trading session at 4,202.90
BEL 20 (BEL20) triple digit loss of 189.42 points to end the trading session at 2,567.59
CAC 40 (CAC40) triple digit loss of 368.77 points to end the trading session at 3,711.98
FTSE100 (UKX100) triple digit loss of 391.06 points to end the trading session at 4,589.19
NIKKEI 225 (NIK/O) session closed
New York Stock Exchange (NYSE) stock market indicators for the day:
Advanced stock prices 246 declined stock prices 3,039; unchanged stock prices 20; stock prices hitting new highs 2 and stock prices hitting new lows 1,664.
NYSE quotes for changable stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the New York Stock Exchange stock market for Day Trading online and active Day Trading for those who are or'd liketo be Day Trading for a living: United States Steel Corporation (NYSE: X) stock price shed 3.88 points on the trading session, high on the trading session $60.47, low on the trading session $52.06 with a closing stock price at $59.62; Citigroup Incorporated (NYSE: C) stock price shed 0.94 points on the trading session, high on the trading session $18.12, low on the trading session $16.10 with a closing stock price at $17.41; State Street Corporation (NYSE: STT) stock price shed 4.96 points on the trading session, high on the trading session $48.37, low on the trading session $36.69 with a closing stock price at $42.00; General Growth Properties Incorporated (NYSE: GGP) stock price shed 1.92 points on the trading session, high on the trading session $10.00, low on the trading session $7.24 with a closing stock price at $7.75; Hess Corporation (NYSE: HES) stock price gained 0.25 points on the trading session, high on the trading session $72.25, low on the trading session $60.27 with a closing stock price at $72.25; Honeywell International Incorporated (NYSE: HON) stock price shed 1.92 points on the trading session, high on the trading session $36.97, low on the trading session $34.66 with a closing stock price at $35.92; Flowserve Corporation (NYSE: FLS) stock price shed 4.39 points on the trading session, high on the trading session $69.95, low on the trading session $58.77 with a closing stock price at $67.81; Sempra Energy (NYSE: SRE) stock price shed 3.83 points on the trading session, high on the trading session $49.14, low on the trading session $43.65 with a closing stock price at $45.54; Nucor Corporation (NYSE: NUE) stock price shed 1.01 points on the trading session, high on the trading session $34.31, low on the trading session $28.97 with a closing stock price at $33.74; Walter Industries Incorporated (NYSE: WLT) stock price shed 0.04 points on the trading session, high on the trading session $37.46, low on the trading session $28.23 with a closing stock price at $36.44; CNOOC Limited (NYSE: CEO) stock price shed 8.40 points on the trading session, high on the trading session $96.93, low on the trading session $88.63 with a closing stock price at $96.28.
National Association of Securities Dealers Automated Quotations (NASDAQ) stock market indicators today:
Advanced stock prices 453; declined stock prices 2,608; unchanged stock prices 65; stock prices hitting new highs 6; stock prices hitting new lows 1,117.
NASDAQ quotes, volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the NASDAQ stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: Apple Incorporated (NasdaqGS: AAPL) stock price gained 0.30 points on the trading session, high on the trading session $98.78, low on the trading session $87.54 with a closing stock price at $97.35; OSI Pharmaceuticals Incorporated (NasdaqGS: OSIP) stock price shed 6.44 points on the trading session, high on the trading session $40.41, low on the trading session $36.46 with a closing stock price at $39.40; Baidu.com Incorporated (NasdaqGS: BIDU) stock price gained 5.31 points on the trading session, high on the trading session $227.70, low on the trading session $203.76 with a closing stock price at $227.68; Vignette Corporation (NasdaqGS: VIGN) stock price shed 0.49 points on the trading session, high on the trading session $9.53, low on the trading session $9.00 with a closing stock price at $9.35; Intuitive Surgical Incorporated (NasdaqGS: ISRG) stock price shed 28.58 points on the trading session, high on the trading session $216.95, low on the trading session $186.55 with a closing stock price at $197.12; Google Incorporated (NasdaqGS: GOOG) stock price shed 17.15 points on the trading session, high on the trading session $375.99, low on the trading session $357.16 with a closing stock price at $369.76; First Solar Incorporated (NasdaqGS: FSLR) stock price shed 6.19 points on the trading session, high on the trading session $161.85, low on the trading session $134.50 with a closing stock price at $157.00.
Market trends on the American Stock Exchange (AMEX) and stock market indicators for today:
Advanced stock prices 163; declined stock prices 1,160; unchanged stock prices 41; stock prices hitting new highs 40; stock prices hitting new lows 701.
Chicago Board of Trade Futures Market activity for the day, at time of this posting for December 2008 Contracts:
E-mini S&P 500 (ES) end of day price 1,050.75 substitute -2.50
E-mini NASDAQ-100 (NQ) end of day price 1,408.50, modify -2.00
E-mini S&P SmallCap 600 (SMP) end of day price 319.40, change 0.00
$5 DJIA (YM) end of day price 9,942 change -24
World Currencies for the Forex Market, for Forex Trading by active Forex Traders, at time of this posting:
Euro 0.7392 to U.S. Dollars 1.3528
Japanese Yen 101.79 to U.S. Dollars 0.0098
British Pound 0.5733 to U.S. Dollars 1.7444
Canadian Dollar 1.1001 to U.S. Dollars 0.9090
Swiss Franc 1.1461 to U.S. Dollars 0.8725
Commodity Markets:
Energy Sector: Light Crude (NYMEX: NYM) shed $6.07 on the day for a closing price of $87.81 a barrel ($US per barrel)
Heating Oil (NYMEX: NYM) shed $0.19 on the day for a closing price of $2.47 a gallon ($US per gallon)
Natural Gas (NYMEX: NYM) shed $0.52 on the day for a closing price of $6.84 per million BTU ($US per mmbtu.)
Unleaded Gas (NYMEX: NYM) shed $0.17 on the day for a closing price of $2.06 a gallon ($US per gallon)
Metals Markets:
Gold Market Price (COMEX: CMX) gained $33.00 on the day for a closing price of $866.20 ($US per Troy ounce)
Silver (COMEX: CMX) shed $0.04 on the day for a closing price of $11.29 ($US per Troy ounce)
Platinum (NYMEX: NYM) gained $20.70 on the day for a closing price of $986.50 ($US per Troy ounce)
Copper (COMEX: CMX) shed $0.20 on the day for a closing price of $2.49 ($US per pound)
Livestock and Meat Markets (cents per lb.):
Lean Hogs (Chicago Mercantile Exchange: CME) gained 0.05 on the day for a closing price of 66.48
Pork Bellies (Chicago Mercantile Exchange: CME) shed 1.05 on the day for a closing price of 93.05
Live Cattle (Chicago Mercantile Exchange: CME) shed 3.00 on the day for a closing price of 94.78
Feeder Cattle (Chicago Mercantile Exchange: CME) shed 3.00 on the day for a closing price of 97.80
Other Commodities (cents per bushel):
Corn (Chicago Board of Trade: CBT) shed 30.00 on the day for a closing price of 424.00
Soybeans (Chicago Board of Trade: CBT) shed 70.00 on the day for a closing price of 922.00
Bond Market:
2 year bond gained 13/32 on the day for a closing price of 101 2/32 with a Yield of 1.44, Yield Change -0.21
5 year bond gained 1 on the day for a closing price of 103 4/32 with a Yield of 2.45, Yield Change -0.21
10 year bond gained 1 6/32 on the day for a closing price of 104 13/32 with a Yield of 3.46, Yield Change -0.14
30 year bond gained 2 7/32 on the day for a closing price of 108 30/32 with a Yield of 3.98, Yield Change -0.12
Is Dow 6,000 Possible?.....
Labels: Dow Jones |I guess the answer to that question would be "In what year?" Certianly not in 2008 if you consult stock market hyper guru Abby Joseph Cohen, the superbull at Goldman Sachs, who maintains that the Dow'll finish 2008 at a level 22 percent higher or 14,755. You do cognize that she makes money by people purchaseing stock don't you?
Back in the real world, the stock market ended on Friday with the Dow Jones industrial average falling 59.91 points, to 12,099.30. That modest decline capped a four-day 678-point plunge that left Wall Street traders and everyday investors wondering if the worst was over.
Abby would of course say YES!
Ah, but there are different voices. David W. Tice, a renowned bear, said Friday that the Dow would sink to 6,000 by the end of the year as the country slides into a recession. Now we're not talking about a small difference here. While their views diverge, both strategists agreed on one point: The wild ride is far from over.
Be prepared for sleepless nights if you decide to invest in this crazy market. Or, you could just purchase several gold coins and go about your business, while sleeping well at night. In whiplash trading, the Dow has fallen 14 percent from its peak in October. While the market has taken deeper dives in the past --- it plummeted 37.8 percent from January 2000 to October 2002, for example --- volatility is approaching its highest levels in several years.
"The R-word is really scaring investors," said Leon Rousso, a certified financial planner in Ventura, Calif. "I've been holding hands and comforting people to get through this and not to panic at a possible recession." Yet a little of analysts warn the news could get much uglier. Earnings forecasts have gone down quite dramatically this year!
"What could lead to greater economic losses or fallout in the market would be further recognized losses or downgrades in the financial sector," said Joe Davis, an economist at the mutual fund company Vanguard Group. "That is the heart of the problem and where the greatest risks lie."
America is also at risk of losing it's Triple A credit rating!
Indeed, while many of the world's largest financial institutions, such as Citigroup, Mejrrill Lynch and UBS, have written down billions of dollars worth of securities linked to mortgages in recent weeks, many investors remain concerned that losses could grow if default levels continue to climb not only on mortgages, but also on credit card bills and auto loans. And, making matters worse, there is mounting concern about the efficacy of companies that sell insurance for bonds, with MBIA and Ambac, to survive.
One would almost have to automatically say that ANYTHING is POSSIBLE with the environment that currently exists world-wide. Whereas in times past America could largely dictate what happened internationally, those days are over.
Is 6,000 possible? Absolutely! Is it probable? Doubtful!
Dow Jones Industrial Average - How's the Stock Market Doing?.....
Labels: Dow Jones |If you have ever listened to a business report on the news, you have heard of the Dow Jones Industrial Average. Established in 1896 by Charles Dow, it's an icon in the trading industry. But what exactly does it mean?
Basically, the Dow Jones Industrial Average's a stock market index that offers a quick way to get a feel for how the stock market is fairing on any given day. It does not offer specifics, but rather, lets us know the general trends that the stock market is following.
The way it is calculated is actually fairly simple. 30 very large companies are selected and the values of their stocks are added together. An average daily value is then derived (the average is scaled using a divisor, which modifies regularly).
The first Dow Jones Industrial Average was comprised of only 12 companies. Of the original 12, only one - General Electric is still used in today's Dow Jones reports. Over the years, the number of stocks included in the average gradually increased.
The Dow has been criticized by several market analysts for not including enough companies to represent overall market performance. Other critics argue that trading on all 30 stocks included in the Dow does not almost always open at the same time every morning, thereby skewing that day's average. Despite these issues however, the Dow Jones Industrial Average has, over the years, consistently performed similarly to the broader US market, which is no doubt why it remains so favorite today.
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5 Easy Steps to Start Investing in the Stock Market.....
Labels: Dow Jones |The stock market just hit the level that had in 1997. Billions upon millions of dollars had evaporated. Banks, mutual funds and individual investors are in shock. BUT all those news are producing reference to the stock market indices, for example the Dow Jones Industrial Average.
The Dow Jones Industrial Average's computed with the stock prices of 30 of the largest public companies in USA.
The Dow could be down as an average, but some individual stocks can be high and profitable. To help you find those stocks, I'll lay here for you 5 well-to-do and fast steps.
1. Sign up with an online broker. With an online broker, you can do transactions as low as $9 per round trip (a round trip is a purchase + sale of the stock). By law, the minimum to open the account with the stock broker is $3,000. That is the minimum money you need to begin trading in the stock market by yourself. Please note that the online broker does not tell you which stocks to buy or sell. They just provide the online interface to do so, but the choice is yours.
2. Find a provider of accurate market data. If you search, you will find many internet companies that can provide you with the stocks prices online. Some of them can give you the live price of the stocks, in real time, for a monthly fee. Others (such as yahoo finance) will provide you for free with the market graphics and prices delayed 15 minutes.
3. Find the stocks on the move. Each day, here are companies with positive news. For example, a pharmaceutical company that gets a new medicine approved by the FDA. A defense company that gets a huge contract with the military. Or a company with a great quarter report.
4. Each day, start watching those stocks. Get a feeling of how they behave. In the beginning you must practice what's called "paper trading". That is, pick a stock to buy and sell the same day, but not invest any money yet.
5. Keep a written dairy for 30 straight trading days. Write the pick of the day, and why you think the price of that stock will go up. Make a note on the optimal time to buy it and the best time of the day to sell it. Please don't overlook this step, and the knowledge you increase from writing it, will train your mind to pick the right stocks.
If you follow the above steps, I can assure you that you'll become a proficient stock trader with big profits. I cognize for sure, because those are the steps I took myself to earn my living in the stock market.
In the stock market world, the days when the market is up are called "Bull Market", and when the market is down are known as "Bear Market". Well, this method you just read will work for you in bull markets and bear markets, because here we are talking about individual stocks and not about indices.
Up One Day, Down One Day: Stock Market Trading.....
Labels: Dow Jones |Market closing prices run up as well as run down faster than summer lightning strikes and rain pours. One day, investors are encouraged; the next day, investors are disappointed. Does the retail mislead investors one day to sucker the same investor the following day? Or, does the stock market inform beyond immediate perception?
The difficulty facing investors involves delving below the obvious market numbers. When the market makes accelerated pricing moves's there a warning message underlying the number? All conversations involve the spoken or obvious message and the unspoken underlying message. Getting to the "what is really being said" challenges everyone listening to the language of the stock market. As someone told me once, "The real message is almost always the message behind the message." Here are a little of messages within the message of the Dow Jones Industrial Average.
Intra-day stock market activity
Most investors ignore the opening, few glance at sidewalk tickers or hear intra-day TV or radio stock market reports. Markets drift or make wild intraday moves. In most cases, intra-day stock market price moves get their momentum from news. For example, "Stocks drifted lower in aimless trading Tuesday as mixed earnings news overshadowed an unexpected jump in consumer confidence and left investors cautious about extending the prior session's sharp advance." Each explanation references a news item. News moves the markets durng the day; company stock transactions provide the most obvious example of what news does to intra-day stock trading.
Trading Volume
The number of shares traded by a company stock or the equity market indices tells us the most. Volume matters in nearly every life-category. Often, I tell my children to "turn down the volume." No matter what direction the market moves, turning up the volume makes the message clearer. A company's stock price moves or broad market moves can be misleading. If a corporate stock reaches a new price high on lower volume, you might think completely is well. In fact, the stock must make that new high price with strong volume (perhaps 3 times the daily average volume) to demonstrate strong purchaseing activity. The same principle holds for market indices. High volume on the upside over successive trading days (no less than 3) recommends market strength; high volume on the downside suggests otherwise.
Industry Groups
Every bull market reveals industry group leadership. Briefing.com is one source of information about industry group strength or weakness. On this day, home entertainment software leads up while air freight and logistics shows weakness. You can track 197 industry groups as an Investor's Business Daily reader.
Leaders and laggards
Every group has its leaders and laggards. When the broad market indices shift out of a bull (down) market, a new group of stocks will emerge as leaders. Watching these stocks during a bull market provides investors with insights about a bull market phase. When leading stocks suffer pricing weakness, investors should stay alert to broad market shifts on the downside. Stock leadership cycles from bull market to bear market to bull market.
Making a correction
Commentators provide multiple excuses for the days when markets endure losses. Every bull market requires a 10% to 20% correction. This shakes out overly optimistic investors. Knowing when to get "in" and "out" of the market stymies stock market gurus. Some do it right many of the time, and others do it wrong all of the time. No matter what direction the market takes, equity/stock and debt/bond investors put their money somewhere. Usually, stock selling means bond buying. If stocks and bonds are sold, cash becomes the default investment. It all depends on the benefits perceived from any asset class.
Charles Dow's "Theory" known as the "Dow Theory" provides some investment wisdom. Today's market activity (Dow Jones up with the Dow Jones Industrials "down") reminds us of 100 years of Dow's investment wisdom. His successor was William P. Hamilton (the fourth editor of the Wall Street Journal.
* Hamilton's bullet points on Charles H. Dow's theory are helpful. "The Averages discount everything." * "The primary trend cannot be manipulated." * "Both the Industrials and Rails (the modern day Transports) must affirm each other in order for the signal to have authority." * "A rise in the Dow Jones Industrial Average must be 'confirmed' by the Dow Jones Transportation Average in order for the rise in the market to be sustainable." * Dow Industrials are companies that make; Dow Transportations are companies that deliver. If the transports are down, the industrials may be in trouble. Today, the Industrials are up (52 points); the Transports are down (80 points)
Asset Class Correlation and Manager Style
Asset allocation across and within asset classes allows investors to endure the downs while waiting for upward moves. It is more probably for asset classes to increase value in a bull market, but all asset classes will not participate at the same time. This is what an investor wants: one asset class up when another may be down. Within asset classes, trading styles should differ. Each of these functions adds value to portfolio performance.
<h1 class="subject">What's a bigger problem high unemployment or a low Dow Jones Industrial average?</h1>
|Is it better if stock prices are low but people have jobs,
or
if people don't have jobs but stock prices are high?
High unemployment is the bigger problem.
The DJIA is an indicator of corporate economic well being which is affected by employment or unemployment. That's because the number of people who are gainfully employed above the poverty line gives you an indication of how much disposable income consumers have to save or invest in financial products, or to spend on general goods and services, or to pay down debt.
The sum total of these activities directly affect the earnings of publicly traded companies, and this eventually leads to a higher or lower DJIA. If enough people don't have enough good paying jobs, then the DJIA will come down to reflect the equilibrium that is not enough aggregate demand and too much supply in the aggregate.
High unemployment is a MUCH bigger problem! If you compound the problem with high stock prices. Stocks have no where to go except down. People who own them will lose fortunes.
When unemployment is high, people don't save, buy goods and services or invest. The stock market will dive.
A low stock market and high employment is an investors dream. It is a golden opportunity to invest in bargain stocks. Stocks will soar and investors will make a fortune.
In economic terms, low prices are the cure to deflation.
The stock market is an indicator of how one part of the economy is functioning, but a poor indicator of the economy overall.
Unemployment is a good indicator of the economy as a whole.
So unemployment.
Generally the Dow Jones Industrial Average reflects the economy. If consumers don't spend unemployment rises. Businesses rely on consumers to spend so that they can pay their employees. No spending equals no jobs.
There is a relationship between the DJIA and jobs---if it gets low unemployment rises--so when the DJIA rises there is hope that unemployment goes lower.....
High unemployment by a long shot. But falling stock values leads directly to higher unemployment, so parsing them into separate problems is a bit tricky.
High unemployment since people are force to live off unemployment benifits which drains the budget and is not replaced with income being with held.
I think the root situation is defiantly jobs - allot of good paying jobs would bring up the stock market.
They go hand in hand..
However unemployment is the biggest.
unemployment. no one working can not buy products or good which make the market go down.
You don't think they might be related? Fix unemployment. The Dow will correct itself.
<h1 class="subject">During One Week The Dow Jones Industrial Average, The Most Commonly Used Measure Of The Stock Market, Rises 43</h1>
|Points, Falls 11 Points, Rises 38 Points, Rises 69 Points, And Falls 148 Points. By How Many Points Is It Up Or Down Overalll For The Week?
A. Down 12 Points
B. Down 9 Points
C. Up 9 Points
D. Up 12 Points
answer it's B because:
+ 43 - 11 + 38 + 69 - 148 =-9
.
<h1 class="subject">What does the dow jones industrial average consist of?</h1>
|is it every stock on the ny stock exchangen, the top 500 stocks, all transportation & manufacturing stock, or 30 stocks?
30 stocks
You should be able to see a list of them here:
http://www.bloomberg.com/markets/stocks/movers_index_dow.html
<h1 class="subject">What are the XM radio stock ticker symbols for dow jones industrial average, nasdaq and s & p 500 index?</h1>
|<h1 class="subject">What would be the one best stock to invest in from dow jones industrial average and why?</h1>
|If you are asking for one DJIA stock to invest in now and never have to think about again, I would nominate Johnson and Johnson. They are one of the most diversified stocks in the Dow (pharmaceuticals, medical devices, nutrition products, and consumer products), they are extremely well managed, none of their businesses is likely to become obsolete, and their current valuation is reasonable.
My second choice, Proctor & Gamble, shares many of these same attributes, although they are primarily consumer products beut extremely diversified in this area. GE would probably be my 3rd choice.
Most of the other DJIA stocks are concentrated in a single sector, and as such are less suited to a "buy and forget" approach. (Not that I recommend such an approach, mind you. I'm just answering your question.)
Good question! I always look for stocks that have a low P/E and pay a high dividend. Out of the 30 DOW components, I actually own 2 individually. Merck (MRK) and DuPont (DD). Both are P/E under 20 and pay a dividend. Merck, despite the Vioxx scandal has solid fundamentals and with people becoming more and more reliant on prescription drugs, I think the company will do well. DuPont is into so many markets both here and abroad with many revenue streams in non-dollar assets, I think they are an 'old economy' company that will long outshine this flimsy service economy we are depending on to carry us through.
Hope this helps!
<h1 class="subject">How was the Dow Jones Industrials average originally calculated?</h1>
|How was the Dow Jones Industrials average originally calculated? When it first came out, what stocks were used and what was the formula? What I really want to know is if I used the same formular on the same stocks today, what would the Dow Jones Industrials Average really be?
http://www.djindexes.com/mdsidx/index.cfm?event=showAvgMethod
<h1 class="subject">Will the stock market (Dow Jones Industrial Averages) go up or down on Thursday October 5?</h1>
|This is my first attempt at using the web as an oracle. We will tally answers and see who wins.
Of what year?
Long Answer: Considering that October 5th is within 2 weeks after most companies' ex-dividend date, most stocks are rebounding after the steep drop that occurs. Additionally, stocks are generally valued higher going into the 4th Quarter as dividends are almost always higher, so the returns are higher relative to other investments (bonds, etc.)
Short Answer: UP!!
The absolute answer is both. At any given moment it will record the last trade as up, or down. So from one trade to the next, it could be going up or down. The only way it can truly be flat is if the market is closed that day.
If you mean will it close higher that day than the day before, then my answer is yes.
<h1 class="subject">Is Obama's lead in the polls depressing the Dow Jones Industrial Average?</h1>
|The Dow Jones Average should be coming up with news of Treasury Department's activities to stabilize the market. However, the Dow Jones Industrial Average continues to drop. Is this due to Obama's current lead in the polls? Did we lose $1,000,000,000,000 (i.e., trillion) of the two trillion lost in the New York Stock Exchange because Obama is ahead?
Yes.
"Wall St." likes a split government.
They don't like when both houses of congress and the president are of the same party.
Too many silly laws get passed that way.
The market dropped happened because of mismanagement by the highest money making companies. The bail out came a day late, after the mid-sized banks had already lost their hold, leaving only the top banks to tumble. The market crash was a result of these banks failing. Lowering the prime rate by a half of percent, bailing out a few banks, and causing panic on the world market took a long time coming, so it is going to take a long to come back. The polls have nothing to do with the economic fall.
right and the credit crunch had noting to do with it?
No its not Obama it's because the world economy is well on its way into a recession despite the American govt actions investors are not feeling safe hence a continuing drop in the Dow Jones AND all other stock markets around the world.
I doubt that very seriously. Only the ones who don't like him will say it is and make up other accusations against him as well. The same with Mc Clain. It's called ' mud throwing '. I don't pay any attention to it. If it's not on the 6 o'clock news it's nothing.
quite the contrary. the dow is not really crazy about the Bush/Republican economic policy's anyway. and we all remember how Bill Clinton's democratic victory boosted the market during his presidency.
YES,
The Dow dropped nearly 300 points on the day he clinched the nomination.
Speculators are afraid of his economic plans
I think the Republicans are throwing the race. The economy is so bad, no one can fix it. In 4 years things will probably be worse and people will want another change...In step the Republicans.
nope, we lost the money because people are not spending money if it's not necessary and because the government continues to bail out rich thieves
No, they are depressed when they see 42 percent of americans really are not smart enough to learn by trial and error.
I do believe you are on to something..
Let's band together & keep Obama far away from the White House :)
It's our only hope!!
I believe so. And if Obama wins, it will get worse.
No, it's because of the Neo Cons and what they have done to our economy.
<h1 class="subject">The Dow Jones Industrial Average (DJIA) is determined by averaging the price of all stocks on the NY exchange?</h1>
|A. TRUE
B. FALSE
False. The Dow Jones measures the performance of the largest, strongest 30 industrials.
False, there are stock that are not 'industrial' on the NY exchange/
<h1 class="subject">What stock symbol trades the Dow Jones Industrial Average?</h1>
|stock symbol: DIA
<h1 class="subject">Who is calculating the Dow Jones Industrial Average Index ?</h1>
|Who is calculating the Dow Jones Industrial Average Index ?
The NY Stock Exchange or the Wall Street Journal ?
Could you give me a link to the calculation formula ?
The Dow Jones Industrial Average Index is calculated by Dow Jones Indexes, a unit of Dow Jones & Company.
Dow Jones ( a subsidiary of news corp)
The Dow Jones Industrial Average (NYSE: DJI, also called the DJIA, Dow 30, or informally the Dow Jones or The Dow) is one of several stock market indices created by nineteenth century Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. Dow compiled the index as a way to gauge the performance of the industrial component of America's stock markets. It is the oldest continuing U.S. market index, aside from the Dow Jones Transportation Average, which Dow also created.
Today, the averages consists of 30 of the largest and most widely held public companies in the United States. The "industrial" portion of the name is largely historicalâ€"many of the 30 modern components have little to do with heavy industry. To compensate for the effects of stock splits and other adjustments, it is currently a scaled average, not the actual average of the prices of its component stocksâ€"the sum of the component prices is divided by a divisor, which changes whenever one of the component stocks has a stock spilt or stock dividend, to generate the value of the index.
Dow Jones calculates it, hence the name.
<h1 class="subject">What is the NY STOCK EXCHANGE Dow Jones Industrial average for today?</h1>
|It's DOWN -215.45 Points~ -2.51% Today.
8,376.24 Close.
The Naz is down - 46.82
The US dollar in your pocket is worth~
.78 cents in Europe.
Or another way to look at it:
You need $1.28 USD * to BUY 1 EuroDollar!
The Dow closed at 8,376.24
<h1 class="subject">What is the dow jones industrial average?</h1>
|people were talking about the stocks going down 312 points today. does this mean the dow jones industrial average went down 312 points? what is the dow jones industrial average? is that a stock? i know i sound like an idiot, but please help me.
go to the source
http://www.djindexes.com/mdsidx/index.cfm?event=showAverages
DJIA is an index of 30 stocks - largest companyies in America (Blue Chips)
it is a price-weighted index of thirty stocks that all together are considered to be indicative of the overall stock market. they are bellweather stocks that try to cover all major segments of the economy.
they consist of large companies such as General Electric, 3M, IBM, Disney, JPMOrgan Chase, etc.
it is one of the least broad of the indices.. comapre it to the S&P 500, which has 500 stocks, or the Wilshire or Russell indices that have thousands.
so they take each stock, and as of the 'beginning date' the price-weighted average is assigned a value, so that in teh end the Index is worth 1. as each stock goes up or down, it affects the index's value.
Is the way the value of money translates in the market.
Look it up on wikipedia
Squadfix has the answer. Study it and you will see what the fluctuation is all about.
It is a group of stocks.
<h1 class="subject">What are some of the important criteria when looking to invest in a stock at Dow Jones Industrial Average?</h1>
|Is there a way in choosing a stock how do you know which one to invest in besides the obvious payoff but are there other important factors to look at also
many factors to look into:
-dividends
-p/e ratio (valuation)
-the performance of the company (ie the financials: balance sheet, income statement etc)
if you're not a financial guru though, my suggestion. invest in a no load (no commission) index mutual fund that invests in the dow jones ? try vanguard or fidelity for example.
investing in such a mutual fund is just a better way to invest for the average person, less cost, less risk, more diversification.
Future relevancy and growth. That could be Pepsi and Coke in the 1960s or elderly care for the baby boomers 20 years from now.
Have you heard of Dogs of the Dow trategy?
go to this website and you will learn more
<h1 class="subject">Twelve stocks that are part of the Dow Jones Industrial Average?</h1>
|I have this homework assignment for my accounting class and she wants us to list 12 stocks that are part of the average. I searched it on wikipedia and found the 12 ORIGINAL. Now, I don't know if she wants that so can someone help me?
Here are the current 30 stocks on the list:
http://www.wikinvest.com/stock/Dow_Jones_Industrial_Average_(.DJIA)
<h1 class="subject">What's the advantage to owning any of the 30 stocks in the Dow Jones Industrial Average?</h1>
|Would it be a good investment strategy to buy stock in all 30 companies?
Look up the "Dogs of the Dow" strategy and I like the "Dow 7" or "DOW 5" techniques.
Look those up and you will learn a lot.
The DOW stocks are the biggest and are picked to represent their industries. They do much of the dollars in business in the country so there is a reason to own them.
But they also have the big influence in something like the S&P 500 which is market cap weighted meaning the bigger the company the more influence it has on the index.
The advantage is that they have been identified as some of the largest most stable blue chips. If you want a conservative list, there it is.
If you buy stock in all thirty, you are paying thirty times the commission you have to. DIA is an ETF set up for people who want to own the DJIA.
No way. Pick up good companies like JNJ and KO. If you want to buy all the stocks, then go with the dow ETF with symbol DDM.
Dow Jones Industrial Average Stocks:The Dow Indexes...
Labels: Dow Jones |Dow Jones Industrial Average Stocks:Dow Jones was founded by Charles Henry Dow, Edward Davis Jones and Charles Milford Bergstresser on Wall Street in New York. At that time the company was called Dow, Jones & Company and the company produced and delivered daily news bulletins called to subscribers in the Wall Street area.
In 1884 Charles H. Dow introduced the first Dow Jones stock index which was based on the nine railroads and which later became well-known as Dow Jones Transport index (DJT index). In 1896 the second, Dow Jones Industrials Average index (DJI Index), was started to be tracked. Later at the beginning of the 20th century, the Dow Jones Utilities index (DJU Index) was set and introduced to the stock retail world.
The DJI, DJT and DJU indexes are selected, maintained and reviewed by editors of The Wall Street Journal. A stock typically's selected only if it is one of the biggest and actively traded companies on the U.S Stock Market.
The Dow Jones averages are price weighted therefore affected only by modifies in the stocks' prices, in contrast with other types of indexes' weightings where the index price is affected by price changes and changes in the number of shares outstanding.
The Dow Jones Transport Index (DJT) Index
Even the Dow Jones Industrial Average is one of the best-known United States stock index, the Dow Jones Transportation Average has an honour to be one of the oldest stock market indexes.
The DJT, assembled in 1884 by was composed of nine railroads, such as the New York Central and Union Pacific, and two non-rails, Pacific Mail Steamship and Western Union.
Over the decades, railroads have been joined in the average by the likes of Delta Air Lines, Federal Express and Ryder System.
The Dow Jones Industrial Average (DJI) Index
Charles H. Dow unveiled his industrial stock average on May 26, 1896. At that time the Dow Jones Industrials comprises 11 stocks, most of which were railroad companies.
Until 1896 the Dow index was published irregularly. However, on Oct. 7, 1896 the Dow Jones Industrials index was expended to 20 stocks and started to be published on a daily basis in The Wall Street Journal. In 1928 the number of stocks included into the Dow index was increased to 30, where it remains.
The 30 stocks in the Dow Jones Industrial Average Index are selected as the biggest publicly traded U.S. companies in their industries. At the end of 1999, these 30 stocks from the DJI index covered about 28 percent of all U.S. stocks.
The Dow Jones Industrial Average Index is the most-analyzed index in the world.
The Dow Jones Utilities (DJU) Index
The Dow Jones Utility average index was introduced in January 1929 and is the youngest of the three Dow Jones Averages.
The utility average index started with 18 stocks. On July 1, 1929, the number the number of DJU stocks was increased to 20, yet, on June 2, 1938 this number was reduced to 15 stocks, where it remains ever since.
Dow Jones Industrial Average Stocks:Dow Jones Index...
Labels: Dow Jones |Dow Jones Industrial Average Stocks:Daily Market Commentary for February 12, 2009 from Millennium-Traders.Com
Trading activity increased during the final half hour of trading with the DOW coming back off a triple digit loss. (read more)
http://www.millennium-traders.com/news/newscommentary.aspx
Economic data released today:
Retail Sales:
U. S. January Retail & Food Sales rose 1.0% compared to consensus of a drop by 0.8%; U. S. January Retail & Food Sales Excluding-Autos rose 0.9%; U. S. December Retail & Food Sales Revised to a decrease by 3.0% from a drop by 2.7%.
Jobless Claims:
U. S. Jobless Claims for week of February 7 fell by 8K to 623K compared to survey of a drop by 8K; U. S. January 31 Week Continuing Claims rose 11K to 4,810,000; U. S. January 31 Week Jobless Claims Revised to 631K from 626K; U. S. Continuing Jobless Claims at Record High.
Business Inventories:
U. S. December Business Inventories fell 1.3% compared to expectations of a drop by 1.0%.
At the NYSE closing bell on the New York Stock Exchange, here is how the major world indices as well as major United States stock indices ended the trading session on the world markets as well as the emerging markets including the stock market closing bell price:
DOW (Dow Jones Industrial Average) loss of 6.77 points to end the trading session at 7,932.76
NYSE (New York Stock Exchange) increase of 3.67 points to end the trading session at 5,256.35
National Association of Securities Dealers Automated Quotations (NASDAQ) gain of 11.21 points to end the trading session at 1,541.71
S&P 500 (SPX) gain of 1.45 points to end the trading session at 835.19
BEL 20 (BEL20) loss of 41.02 points to end the trading session at 1,843.00
CAC 40 (CAC40) loss of 63.38 points to end the trading session at 2,964.34
FTSE100 (UKX100) loss of 32.02 points to end the trading session at 4,202.24
NIKKEI 225 (NIK/O) closed Feb 11 - loss of 23.09 points at the end the trading session at 7,945.94
New York Stock Exchange (NYSE) stock market indicators for the trading session today:
Advanced stock prices 1,384, declined stock prices 1,668, unchanged stock prices 118, stock prices hitting early highs 4 and stock prices hitting new lows 120. NYSE quotes for changable stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the New York Stock Exchange stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: Devon Energy Corporation (NYSE: DVN) stock price shed 0.86 points on the trading session, high on the trading session $52.08, low on the trading session $50.15, with a closing stock price at $51.77; Rio Tinto (NYSE: RTP) stock price shed 0.91 points on the trading session, high on the trading session $112.30, low on the trading session $102.18, with a closing stock price at $111.89; New Oriental Education & Technical (NYSE: EDU) stock price shed 12.37 points on the trading session, high on the trading session $43.33, low on the trading session $38.04 with a closing stock price at $40.76; Terex Corporation (NYSE: TEX) stock price shed 4.17 points on the trading session, high on the trading session $10.80, low on the trading session $8.65, with a closing stock price at $9.45; ITT Educational Services Incorporated (NYSE: ESI) stock price shed 5.94 points on the trading session, high on the trading session $124.32, low on the trading session $114.40, with a closing stock price at $123.06; ProShares Ultrashort Financials (NYSE: SKF) stock price gained 1.65 points on the trading session, high on the trading session $150.38, low on the trading session $134.40, with a closing stock price at $135.14; ProShares Ultrashort S&P500 (NYSE: SDS) stock price shed 0.11 points on the trading session, high on the trading session $83.40, low on the trading session $78.17, with a closing stock price at $78.41; MasterCard Incorporated (NYSE: MA) stock price shed 2.18 points on the trading session, high on the trading session $162.15, low on the trading session $155.15, with a closing stock price at $161.80; Direxion Financial Bear 3X (NYSE: FAZ) stock price gained 1.09 points on the trading session, high on the trading session $51.44, low on the trading session $44.24, with a closing stock price at $44.64; CME Group Incorporated (NYSE: CME) stock price gained 7.62 points on the trading session, high on the trading session $194.33, low on the trading session $181.27, with a closing stock price at $192.90.
National Association of Securities Dealers Automated Quotations (NASDAQ) stock market indicators for the trading session today:
Advanced stock prices 1,369, declined stock prices 1,333, unchanged stock prices 171, stock prices hitting new highs 8 and stock prices hitting new lows 138. NASDAQ quotes, volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the NASDAQ stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: Strayer Education Incorporated (NasdaqGS: STRA) stock price shed 39.22 points on the trading session, high on the trading session $195.99, low on the trading session $179.01, with a closing stock price at $186.65; Asia Holdings Incorporated (NasdaqGS: ASIA) stock price gained 2.46 points on the trading session, high on the trading session $12.77, low on the trading session $11.00, with a closing stock price at $12.74; Buffalo Wild Wings Incorporated (NasdaqGS: BWLD) stock price gained 7.00 points on the trading session, high on the trading session $29.56, low on the trading session $27.11, with a closing stock price at $28.91; Apollo Group Incorporated (NasdaqGS: APOL) stock price shed 0.10 points on the trading session, high on the trading session $82.96, low on the trading session $76.35, with a closing stock price at $82.26; First Solar Incorporated (NasdaqGS: FSLR) stock price shed 1.36 points on the trading session, high on the trading session $146.37, low on the trading session $139.78, with a closing stock price at $145.50.
Market trends on the American Stock Exchange (AMEX) and stock market indicators for the trading session today:
Advanced stock prices 218, declined stock prices 327, unchanged stock prices 67, stock prices hitting new highs 6 and stock prices hitting new lows 14.
Chicago Board of Trade Futures Market for the day, at time of this posting:
E-mini S&P 500 (ES) Mar 09: End of trading session price 83250; Change for the trading session -0.25
E-mini NASDAQ-100 (NQ) Mar 09: End of trading session price 1,240.25; Change for the trading session 17.00
E-mini DOW $5 (YM) Mar 09: End of trading session price 7,903; Change for the trading session 7
E-mini S&P MidCap 400 (MF) Mar 09: End of trading session price 509.20; Change for the trading session 4.90
E-mini S&P Small Cap 600 (HS) Mar 09: End of trading session price 7,760; Change for the trading session -25
World Currencies for the Forex Market, for Forex Trading by active Forex Traders, at time of this posting:
Euro 0.7781 to U.S. Dollars 1.2851
Japanese Yen 90.9500 to U.S. Dollars 0.0110
British Pound 0.7018 to U.S. Dollars 1.4249
Canadian Dollar 1.2439 to U.S. Dollars 0.8039
Swiss Franc 1.1637 to U.S. Dollars 0.8593
COMMODITY MARKETS:
Energy Sector - Nymex:
Light Crude (March 09) shed $1.96 on the trading session for a closing price of $33.98 per barrel ($US per barrel)
Heating Oil (March 09) gained $0.01 on the trading session for a closing price of $1.33 a gallon ($US per gallon)
Natural Gas (March 09) shed $0.05 on the trading session for a closing price of $4.48 per million BTU ($US per mmbtu.)
Unleaded Gas (March 09) gained $0.01 on the trading session for a closing price of $1.28 a gallon ($US per gallon)
Metals Markets - Comex:
Gold (April 09) gained $4.70 on the trading session for a closing price of $949.20 ($US per Troy ounce)
Silver (March 09) shed $0.01 on the trading session for a closing price of $13.51 ($US per Troy ounce)
Platinum (April 09) shed $2.80 on the trading session for a closing price of $1,078.00 ($US per Troy ounce)
Copper (March 09) shed $0.01 on the trading session for a closing price of $1.53 ($US per pound)
Livestock and Meat Markets - Chicago Mercantile Exchange (cents per lb.):
Lean Hogs (April 09) gained 1.53 on the trading session for a closing price of 63.80
Pork Bellies (March 09) gained 1.13 on the trading session for a closing price of 82.10
Live Cattle (April 09) shed 0.10 on the trading session for a closing price of 87.55
Feeder Cattle (March 09) shed 0.25 on the trading session for a closing price of 95.15
Other Commodities - Chicago Board of Trade (cents per bushel):
Corn (March 09) shed 2.25 on the trading session for a closing price of 366.25
Soybeans (March 09) shed 9.50 on the trading session for a closing price of 968.50
BOND MARKET:
2 year Bond Closing price 99 30/32, replace 0, Yield 0.89, Yield change 0.00
5 year Bond closing price of 99 31/32, change 0, Yield 1.75, Yield change 0.00
10 year Bond closing price 99 24/32, change 11/32, Yield 2.78, Yield change -0.01
30 year Bond closing price 117 30/32, change -1 13/32, Yield 3.44, Yield change 0.07
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Dow Jones Industrial Average Stocks:Dow Jones...
Labels: Dow Jones |Dow Jones Industrial Average Stocks:The Dow Jones Industrial Average (NYSE: DJI), called the DJIA, Dow 30, or informally the Dow Jones or the Dow is one of many stock market indices created by nineteenth century Charles Dow. Dow compiled the index as a way to gauge the effectiveness of the industrial component of America's stock markets. It is the second oldest continuing United States market index, after the Dow Jones Transportation Average, which Dow also created.
Today, the average consists of 30 of the largest as well as most widely held public companies in the United States.
Looking at the daily graph of the Dow, we could see that in May- June there were always big turns. Let us check the first trade chart of the Dow to see what planets caused these turns:
12 May 2004 till 23 June 2004 transiting Mercury, which is also ruler of Asc. Is applying to natal Sun, and conjuncts it on 24 June. Transiting Jupiter applies to natal Sun, which is exact on the 23rd. The Dow went up from 9822 to 10530.
13 May 2005 till 17.June 2005 Transiting Mercury applied to Natal Sun and conjunct it exactly to date. Beneficial Venus had her role here as well, also conjunct natal Sun on the 13th. Jupiter at this time was already squaring the Sun, so the uptrend from 10140-10710 was stopped.
10 may 2006 until 13 June 2006. Now what happened this year? Wasn't Mercury there to do the job? Or Jupiter? Sure they were, but stronger planets came on the stage! Transiting Uranus opposed natal Mars, on the Asc, and that is no doubt more forceful then easy-wizzy Mercury. Of course there should be more than one reasons for all movements. And there were! Saturn on the Dow's Jupiter, brought his depression as well, so the Dow fell from a high of 11684 to 10706.
13 March 2007 till 4 June 2007 After the full moon there was a run-up of 82 days as if there is no tomorrow, and something has to be accomplished. Well there were a couple of reasons. Transiting Venus gets closer to natal Sun, but mainly Pluto turns retro and ingresses again Sagittarius, Mercury from stationary turns direct, and applies to tr. Sun, Neptune in the sky form a sextile with Venus, and many more positive angles, which resulted in an uptrend of 12070 to13692.
22 May 2008 - ?? now Mercury is separating from natal Sun, will turn direct on the 19 June, transiting Uranus is opposing natal Uranus, a position which occurred exclusively in June 1925, not only that, Uranus turns retro and will " iron" this point till 26 Nov.08, and its effect will be felt after Feb 2011. Maybe the whole structure of the Dow or the trade will be changed during this period.