Stocks slip on GDP and debt uncertainty

[ej510]

Source: CNN Money



NEW YORK (CNNMoney) -- Stock prices fell modestly Friday as investors worked through a worse-than-expected report on U.S. economic growth and the sluggish progress on a debt ceiling deal.

While stocks were well off their earlier lows, the major U.S. indexes are still on pace for their worst week in a year.

The Dow Jones industrial average (INDU) fell 56 points, or 0.5%; while the S&P 500 (SPX) was down 3 points, or 0.3%; and the Nasdaq Composite (COMP) rose slightly, up 3 points, or 0.1%.

Traders and market observers pointed to a few reasons for why Friday's declines were more modest than originally anticipated.

Stocks were oversold on a short-term basis, traders said, with the Dow down for the sixth straight session and the S&P 500 flirting with a key technical level. Other traders pointed to what appeared to be progress on the debt ceiling.

"When the market dropped to the 1,282 level on the S&P, we saw an oversold 'buy' signal," said Phil Orlando, market strategist with Federated Investors. "I'm not saying we couldn't go lower, but that move at 1,282 was significant from a short-term technical perspective."

Read more: http://money.cnn.com/2011/07/29/markets/markets_newyork/

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Aww poor widdle Wall Street is nervous.

[Igel]

1. And if there's no deal Monday it'll be worse.

My mother lost money that she uses for her retirement. If it doesn't come back, it'll mean she'll be on minimum-Medicaid nursing home detail for a few months longer. And the government will have to pay for it. Except when she needs it, it won't be there.

If she loses more, it'll be worse.

She's 83, has Alzheimer's, and was a steelworker for 30 years. Her husband was a steelworker for 38 years.

Remember: First, dehumanize and ridicule the enemy. It makes hating them and revelling in their misery all the easier. It's worked countless times. Oddly, usually it's done when there's some advantage for the victor. In this, everybody winds up poorer. (Somalia and Zimbabwe have really low Gin coefficients; obviously, they're the models worth emulating.)

[CountAllVotes]

2. Stocks were oversold on a short-term basis

That is one good excuse for the losses.

The other reason is because it is take the money and run run run time before it is all gone once again!

:kick: