The Market’s Drop – Analyst Blog
Source: http://www.zacks.com/stock/news/17455/The+Market%27s+Drop+-+Analyst+BlogPosted on Tuesday, February 17th, 2009 | In Stocks to Watch
Highlights include JPMorgan Chase & Co. (JPM) and General Motors Corporation (GM).
Worries about the financial sector caused the S&P 500 (SPX) to trade below 800 for the first time since November. As I write this, JP Morgan (JPM) is down by more than 8%.
The auto sector isn’t helping, either. Shares of General Motors (GM) are plunging by about 12%. Today, both GM and Chrysler are required to provide plans about how they will turn themselves around. GM has been in talks with the UAW [United Auto Workers] about concessions.
Perhaps the biggest catalyst is the realization that the global economy is getting weaker. I don’t remember a time when so many people have talked negatively about the economy. Even at the gym, I overhear people talking about either how their business is struggling or how they are happy just to be employed.
Plus, both fundamentals and technicals pointed to lower stock prices. Earnings estimates have been cut across the board, as 2009 profit projections for the S&P 500 have been cut by more than 30% since November. The Dow Jones Industrial Average ($DJI) has been setting lower highs.
We are in a recession, and during periods of economic turmoil, stocks will fall. This does not mean you should stop looking for investment candidates. Quite the opposite — uncertainty brings opportunity. You just need to be patient and selective. Keep looking and you will find good bargains.
Read the full analyst report on GM
“JPM” Free Stock Analysis: Buy? Sell? Hold?
“GM” Free Stock Analysis: Buy? Sell? Hold?
“SPX” Free Stock Analysis: Buy? Sell? Hold?
“$DJI” Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research
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 About Charles Rotblut (http://www.zacks.com/)
Charles Rotblut is the Vice President of Web Content for Zacks Investment Research and the Senior Market Analyst for Zacks.com. He oversees the editorial staff, manages the market-beating Focus List, Timely Buys and Top 10 portfolios, and plays an instrumental role in the development of new products. In addition, Mr. Rotblut is spearheading the development of investment education products, including the recently released Zacks Method for Trading. Mr. Rotblut is a Chartered Financial Analyst (CFA). He has analyzed publicly traded and privately held companies. His experience includes working for INVESTools (an investment education company), Curian Capital (a money management firm) and McClure, Schumacher & Associates (a business valuation firm). Mr. Rotblut holds a journalism degree from the University of Kansas. |
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