Posted March 4, 2012 14:44
This week in the market, all three major indices ended at the flat line. It might seem as though the past week was a boring week due to the market ending null. Quite the contrary; the market had many gyrations due to a couple of factors.
The main factor was Chairman Bernanke’s speech. He put a damper on the market saying that the jobs growth was inadequate and must be improved. The irony of that statement is that the January jobs number came in at 243,000 (new jobs created) and in addition to that, the GDP number was at 3%.
Secondly, Chairman Bernanke never gave mention of the possibility of QE3. The term QE3 stands for the third Quantitative Easing.
Another piece of exciting news was the start of trading for Yelp!. The shares had a monstrous gain of 63% in the first trading day, which was Friday. The shares were listed at $15 per share, above the estimated $14 per share. Once the shares began trading at around 10 A.M, the shares hit $24.
Looking forward to next week, the big news will come on Friday. The government will release the non-farm payrolls for the month of February. The number should come in slightly lower than January’s number of 243,000 but should still should positive jobs growth.