Markets to wade further into uncharted territory; Jobs report, oil near $143 to keep traders on edge

[marmar]

from MarketWatch:



Markets to wade further into uncharted territory
Jobs report, oil near $143 to keep traders on edge
By Moming Zhou, MarketWatch


SAN FRANCISCO (MarketWatch) -- Stocks next week are expected to enter the third quarter on uncertain footing after the Dow Jones Industrial Average briefly fell into bear-market territory this week, battered by record oil prices and a slumping financial sector.

"It's going to be a very interesting week; it's going to be a very dangerous week," said Paul Mendelsohn, chief investment strategist at Windham Financial Service.

Mounting concerns about consumers and the economy will bring oil prices and the June employment report, which will come out Thursday because of a holiday-shortened week, into sharp focus.

Also on Thursday, the European Central Bank is widely expected to raise interest rates, a move that would likely further pressure the dollar and might further lift commodities prices. A weaker U.S. currency tends to boost the price of dollar-denominated commodities, such as crude, as it makes them cheaper for holders of other currencies.

Enter the bear

Stocks finished the week sharply lower, with oil near $143 a barrel, ailing financials and concerns about the economy all catching up to a market that has now lost nearly 20% from its 2007 highs, which would mark an official entry into bear-market territory.

After sliding nearly 360 points on Thursday and falling further on Friday, the Dow finished the week 4.2% lower at 11,346.

The blue-chip index is on track for its worst June since 1930. The Dow also has now lost nearly 20% since its Oct. 9, 2007 record high of 14,165.

The S&P 500 Index ended the week down 3% at 1,278.38. The broad index, which market experts use as a gauge for the overall market, is now off 18.1% from its high of 1,562 points on Oct. 10, 2007. ..........(more)

The complete piece is at: http://www.marketwatch.com/news/story/markets-wade-further-uncharted-territory/story.aspx?guid=%7BCA1E7FA5%2D7B46%2D47DA%2DB40D%2DF3754C3FF412%7D

[MadHound]

1. Oh the horrors, reality finally catching up with the markets

It's about time, the market has been about twenty five-thirty percent overvalued for a number of years now, and despite all the hot air, the work of the PPT and others, you can't keep the market up there forever. Reality is finally striking the markets, and it's going to hit hard.

[Deja Q]

2. They'll find ways to blame the consumers and exonerate the actual causes.

?

:dunce: :shrug: