Monday - June 15, 2009

The market opened low and remained lower. It was searching for direction last week. Investors have been cautious about the stocks going higher and the fundamentals of the economy. They chose to take profits today.
Today is the biggest one-day drop since April 20th. There are a couple of reasons (other than investors taking profit) causing stocks to slide. The New York Federal Reserve's general business conditions index dropped to -9.41 from -4.55 in May. This sent the stocks lower. Commodities and their related stocks fell as the US dollar gained strength. A stronger US dollar was a result of the Russians saying that the dollar is still a good world reserve currency. Crude oil finished at $70.62 per barrel, a drop of -$1.42.
Wal-mart (WMT) got downgraded by Goldman Sachs from "buy" to "neutral". It finished at $48.46 or -2.77%. I have always liked WMT though and I still do.
There are a few earning reports to watch this week: Target, Fedex and Research in motion.


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