Stock Market Update -Jul 6th

The selling continued this past week, as we saw more job losses and high oil prices. Maybe we'll get some support at this level from buyers, but it's still risky at this point so be sure to protect your positions.


Remember my post about Starbucks being a recession indicator back in April -well this week they announced 600 store closings and 12,000 job cuts.

Next week begins a new earnings season -we could see some market reaction to the downside if we continue to get bad news. Looking at the charts above, you can see the S&P 500 is at a critical level that it touched in January and again in March. It could go either way from here, but the DOW has already broken down through this level (chart on the right).

News stories:
Employers cut 62,000 jobs in June, 438,000 this year
Starbucks to cut up to 12,000 jobs, close 600 stores
American Airlines set to cut 7,000 jobs
Oil soars to high near $146, then eases as dollar strengthens
Waiting for stocks to rally? Don't hold your breath
The Bear's Back

Investors’ new worry: Second-quarter earnings
Corporate earnings on track for fourth straight quarterly drop
Morgan Stanley analysts: Credit crisis to extend to 2009
GM needs $15 billion to avoid bankruptcy, Merrill analyst says
Banks: Everything must go!
The buck doesn't stop here; it just keeps falling
Vulture real estate investors swoop in
G-8 meets as economy storm clouds thicken
Stocks and Indexes mentioned in this blog are for educational and illustration purposes only.

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