US Stock Market Sleeps?!
By Irakli Berdzenadze
Personal Financial and Investment Consultant
US stock market sleeps?! This is a main question today after a bad news from today morning. U.S. stocks fell sharply Tuesday after disappointing data on American manufacturing and as European leaders readied for discussions on the region’s debt crisis.
U.S. stocks fell, following a two- week decline in the Standard & Poor’s 500 Index, as a private report showed American manufacturing industries contracted in August, fueling concern the economic recovery is slowing. Netflix Inc. slumped 10 percent, the most in the S&P 500, after Amazon.com Inc. reached a deal with pay-television channel Epix. Peabody Energy Corp. (BTU) lost 4.9 percent as Dahlman Rose & Co. cut its recommendation on the company’s stock. Morgan Stanley (MS) rose 2.6 percent after CLSA Ltd. recommended buying the shares. Valeant Pharmaceuticals International Inc. (VRX) rallied 15 percent after agreeing to buy Medicis (MRX) Pharmaceutical Corp. for $2.6 billion. Medicis surged 38 percent. All major indeces is in red position for example: S&P loss 7.29 $; Dow Jones loss over 100 $ all major stocks are in red positions and mrket going down. shares were battered after Amazon.com Inc. AMZN -0.91% reached an agreement with Viacom Inc.’s VIA -1.35% pay-television channel Epix. Valeant Pharmaceuticals International Inc. VRX +15.14% gained after it said it would acquire Medicis Pharmaceutical Corp. MRX +38.01% for about $2.6 billion.
shares were battered after Amazon.com Inc. AMZN -0.91% reached an agreement with Viacom Inc.’s VIA -1.35% pay-television channel Epix. Valeant Pharmaceuticals International Inc. VRX +15.14% gained after it said it would acquire Medicis Pharmaceutical Corp. MRX +38.01% for about $2.6 billion. But instead of this information currency exchange market continues stabilization and going well. Shareholders of Wall Street banks who agree with former Citigroup Inc. (C) Chief Executive Officer Sanford “Sandy” Weill that the companies should be broken up face an obstacle: bondholders. That’s because trading on Wall Street relies on borrowed money, or leverage, that can be obtained cheaply as long as the traders belong to a conglomerate such as Bank of America Corp., JPMorgan Chase & Co. (JPM) or Citigroup that gets federally insured deposits. Jefferies Group Inc. (JEF), a securities firm that isn’t part of a bank and can’t turn to the Federal Reserve for help, currently is charged more to borrow in the credit markets.
How long this will continue and what was a main reason of this?
Main reasons:
1) Crises in Europe
2) US manufacturing rating
3) Global market unstability
How long time this will continue?
It's depend on global economic and politic situation, but today's situation isn't seems good, because European crises going in hard position and european leaders can't to make any decision about Greece and spenish economy.
Where to invest today?
In cheap stocks, but it would be better to wait for some several hours or days or invest immediately in Bonds.
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