After compulsively checking my class website every hour, I finally broke down and emailed my TA about my midterm grade. But…then I compulsively checked my email every hour. The wait was worth it though because I got a 99.5 on my Security Markets midterm. I’ll try to pretend the missing .5 point is not bothering me. I may or may not be shamelessly bragging about this on the internet, but like, what are you gonna do about it?
So Mr. Market, whats up today? The Dow dropped 300 points as Cisco reported a drop in demand and major retailers turned in weak sales for October. The only store withstanding this volatility is Wal-Mart. Stores from Target to Nordstrom’s posted large losses. The Labor Department also reported a jump in unemployment benefits. So before things can get better, they are clearly going to get worse.
On the bright side of the moon, PredictWallStreet published 15 snazzy forecasts today. Ooo Oo I’m picking three of my more favorable companies to highlight today. I love all these choices.
General Motors (GM) is forecasted to close down-the only down forecast today actually. The auto industry has took a giant hit in the wake of the economic downturn with GM at the forefront. After being denied a cool $10 billion for the attempted Chrysler merge, GM is left to work with what they have got and make the best of it. There is still hope for a $25 billion loan program for developing fuel efficient vehicles. With consumer spending at all time lows, GM and other companies like Ford, face the difficult task of enticing customers to make such large purchases. Right now GM is down almost 11% and sentiment has dropped into the bearish zone. There are 140 predictions right now and interestingly enough only 51% predicted GM to close up. Combining the down forecast with the 49% of down predictions, I think there’s a pretty good change GM is gonna be down.
Google (GOOG) is forecasted to close up today. The ad deal between Yahoo! and Google is kaput after Google received much pressure form US regulators and backed out. Yahoo! was clearly disappointed with there withdrawal but received some consolation when there shares surprisingly shot up. Google, on the other hand, hasn’t be so lucky. GOOG is currently down 3.78% and sentiment remains bearish. However, it is interesting to note that out of the 50 or so predictions, over half (51%) have predicted Google to close down, contrary to what the forecast says. So we’ll have to check back tomorrow and see which is right. I am personally predicting down because I think the deal breaker news will eventually catch up with Google, but its effects will be marginal. It’s hard to make a bigger dent in the internet giant.
And again, Exxon Mobil Corp. (XOM) is forecasted to close up again today. Oil prices neared $60 a barrel this morning on heightened fears of a recession. With oil prices pulling back, we are bound to see consumer more willing to drive, which will indirectly effect other aspects of consumer spending. I filled up this morning for only $27 and was pretty stoked about it. It’s been a long time since I have been conscious about driving too much to save money and I hope it stays this way for awhile.
Dont forget to predict and play the contest on PredictWallStreet for you chance to win up to $450! Everyone have a good weekend!
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