Nearly $11 billion was spent
in the 72-hour period and this is giving many retailers reason to believe that
despite the growing fears about economic uncertainty, consumers aren't letting
the bad news of the economy affect their holiday spending.
Record
discounts are the cause of the surprising sales numbers. Retailers across the
nation have slashed prices and have launched sophisticated marketing campaigns
to promote their discounts.
It seems to be working.
Many are
hoping that Black Friday this year was an indicator of what retailers can expect
for the remainder of this season. However, many experts still believe this
season will utlimately be seen as the worst in many years. There's still hope
however, that the experts are wrong and the Thanksgiving weekend was cause
enough for everyone to have a little holiday cheer.
Retailers are only
asking one thing from Santa this year, and that's that their books are in the
black by December 31.
The second loss
in a row, down nearly 1,000 points since Monday, the Dow's value has been cut in
half in a little more than a year's time. That amount marks the highest
percentage decrease in value for the Dow since 1932.
All segments of the
market were affected today in trading. No area of investment seems safe. All
indications point to a continued free fall, with no immediate relief in
sight.
With no loan agreement within reach for the major automakers, the
markets will certainly continue the fall tomorrow. When will news of federal assistance come for the troubled car makers? News is that more
concrete information will surface next week as to when a potential bailout for
the big three auto makers can be expected.
Until then, investors will
have to continue to weather the stormy market.
Investors pulled money out of stocks on the
market all day as many feared the current recession will only get worse unless
the federal government can bail out the troubled auto industry.
The course the
market has taken since September hasn't changed much, and it continues to look unlikely that it will rebound anytime soon. Giving up more than 400 points on
Wednesday, the Dow continued on its downward spiral as it quickly approaches
lows seen in 2000 and 2002.
No vote came today regarding the allocation
of part of the $800 billion bailout to the auto industry. Many believe when
Congress does vote that the bill will stall, leaving the three major auto
manufacturers without the needed revenue they feel is vital to saving the
industry.
Most analysts feel a substantial loan to the auto industry
giants will come, but until word of when comes, the market will continue to fall.
Though nervous about the recession and nearly $1
trillion in stock value that was lost the past four trading days on the market,
many traders took action and purchased huge quantities of stock when the
S&P's 500 looked like it was recovering from its own trading
lows.
Investors on Thursday were positioning themselves aggressively,
partly due to hopeful good news most are expecting to come from a meeting in
Washington next week where world leaders are expected to attempt to mend the
world financial troubles through bailout agreements.
Anticipation was the
catch word on the trading floor.
Thursday's rally was proof that many
traders are hoping the world economies will be able to put together stimulus
plans and multi-billion dollar bailouts that will help to end the world
recession quickly.
While many still forecast a rocky future for the stock
markets around the world, the fact that the market aggressively jumped into
positive territory on Thursday is a great sign to many analysts.
Don't
expect the worst to be over though.
Most analysts and insiders believe
the worst is still to come, but Thursday's jump is leading many to believe that
there is light at the end of the tunnel.
News of a government plan to renegotiate the bail out plan didn't help to level
off the decline in stock value. All 30 stocks in the Dow-Jones ended lower;
however futures trading late on Tuesday signaled a possible turnaround for
Wednesday.
Tuesday's slump marked a continued concern that GM may collapse and
weak retail sales in addition to Starbucks faltering and falling oil prices.
Now at the lowest barrel price since March of 2007, oil closed late last week at
$60.76. That's roughly a 59 percent fall since last July.
A recently unveiled $586 billion bailout plan for China could do little to stop the
falling price of crude oil. Things here in the U.S. continue to get worse.
Since, the oil industry is heavily dependent on the U.S. for oil consumption, it would
seem that little can be done to stave the fall of crude oil until signs of an
easing recession show.
Not helping matters is the auto industry's continued free fall. U.S. car sales
are at a near 25-year low, which only encourages falling oil prices.
With no immediate end in sight, crude oil will continue to fall.
Ticket brokers
are asking for upwards of $20,000 for President-elect Barack Obama's
inauguration next January. Some 250,000 tickets for the event are the
most sought after in recent memory.
How are these
brokers getting the inaugural tickets that are usually handed out for free?
Many will purchase them from Capitol Hill employees and people who get them
from Congress members. The government will release the tickets just
before the inauguration and many orders will obviously not be filled as brokers
will have no certainty of getting the quantity they want.
Inauguration
organizers are doing their part to put a stop to the ticket scalping, but some
believe many tickets will be available for purchase but the cost for the
tickets might sky rocket upwards of $40,000 a piece.
To
the victor go the spoils ... and the economic mess. President Elect Obama and
the now Democrat-controlled Senate and House will have one of the toughest tasks
in recent history in store for them when the new administration takes office in
mid-January.
Plans will be finalized on Wednesday for the borrowing of a
record $550 billion that is to be spent in the next three months before
the end of the Bush administration. In addition to that amount, the Treasury
Department stated that an additional $368 billion will be needed in the first
quarter of 2009.
Stocks were up in Asia as the events of the election
unfolded Tuesday night. Investors seem to be looking forward to the end of the
political uncertainty. This week should see some pleasantly received positive
gains for the market.
How much of a change to the market is to be
expected? Only time will tell. But whatever the increase is, it is not expected
to change the projected amount needed to bring the economy out of recession.
