Wednesday, May 7, 2014

Economic Journal - Wednesday, 5/7/2014

(as of 7:20 AM PST)

Technology stocks continue to fall, extending losses from yesterday’s trading.  Profit reports mostly disappointed after the market close yesterday and we can see that disappointment, especially in the Nasdaq which is down moderately, while other indexes are showing small gains.  An apparent break in the Ukraine crisis is providing some support. Without that positive news, we could be looking at another triple digit loss on the Dow and greater percentage losses on the Nasdaq.  There seems to be a decidedly negative momentum which might weigh on stocks more and more as the day progresses.  Investors appear to be abandoning momentum growth stocks and looking to fundamentals, such as revenue growth and earnings in making investment decisions.  Gold is down over 1% while oil is holding steady.  Fasten your seat belt.  There is turbulence ahead. 

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