Stock Market Update -Nov 1st

Except for a rally on Thursday after the GDP report, the market was down for another week (I wrote last week "...We could see another 'market down, prop up the bonds' week"). Also this was the first monthly loss in the S&P since the rally began in March. We could be at a turning point in this nine month rally. Banks are in the headlines again, with the financial sector showing a lot of weakness.

New Unemployment claims for this week came in at 530,000 (chart).
(still over the half million mark every week)
Nine more banks were shutdown by regulators this week! (list).

Commodities: Oil prices fell from the high to close the week around $77 per barrel. Natural Gas was back up to the $5.00 level. Other commodities gave up some ground as the dollar regained some strength. Gold prices were down as well. The US Dollar index closed up for the week around the 76 level. Bond prices were up as the stock market fell.

The national debt crossed the $12 trillion mark this week (see clock on the left). The government doesn't seem to be too concerned though!

The Dollar relationship to the Stock market

Next week we get more earnings reports including Ford, Cisco, and Starbucks. We also have the Fed meeting announcement on Wednesday, and the monthly Jobs report on Friday, both potentially big market moving events. We will probably see unemployment finally pushing over 10%.

Market analysis: The market was down again this week, on heavy volume, and closed October as the weakest month since the March rally started. We could be in for a bigger correction. As an investor, now would be a good time to get defensive and hedge or protect your gains. As a trader, hopefully you are already out of any long positions.

Note that BIDU was down $50 on Monday after they reported earnings. RIMM continues to breakdown, and AAPL finally started to crack this week too -all market leaders on the NASDAQ.

Small banking empire collapses; 9 fail in 1 day
CIT files for bankruptcy
Exxon Mobil earnings plunge 68%
Citigroup Shares Tumble After Analyst Sees Major Writedown
GMAC seeking third bailout - report
Do banks have something to hide?
Wilbur Ross Sees ‘Huge’ Commercial Real Estate Crash
What's Still Wrong with Wall Street

U.S. GDP rises 3.5% as stimulus kicks in
Stimulus creates 640,000 jobs
Jobs will return -- in 2012
Be Prepared for the Worst
China’s Recovery Strengthens, Adding Room for Stimulus Cuts
Forget China, Brazil's a cheaper investment
Don't Argue with Paul Tudor Jones about Gold