Stock Market Update -Dec 14th

In spite of all the bad news, the market continues to hold up well. The automakers failed to get a bailout package from the government this week. Oil closed higher, so did Gold, and so did many other commodities as the US Dollar fell, following its recent rally. New unemployment claims hit 573,000 this week (a 26 year high), and two more banks were shut down by regulators. People are now investing in Treasury Bills for a zero interest rate return (basically 'paying' the government to hold money for them)!


Next week we have the last Fed meeting for this year; more interest rate cuts are expected to be announced. Goldman Sachs and Morgan Stanley will be reporting earnings as well. It is also expiration week for Options & Futures, so we can expect some volatility as we close out the last month and quarter for 2008 for these derivatives. We could see the market continue with the recent rally.

Recession seen worsening, deflation a risk
Why Would Anyone Buy T-Bills at 0%?
Ex-Nasdaq chairman charged with perpetrating massive fraud
Hedge Funds Face Big Losses in Madoff Case
Bank of America to cut up to 35,000 jobs
Wells Fargo to write down $40 billion in Q4...
GM hires bankruptcy lawyers
Dow's rally may boost stocks next week
Fears rise over possible Ecuador default

8 really, really scary predictions