Posted May 14, 2012 11:49
This past week in the market was very stressful for most investors. Sunday night, futures indicated a triple-digit decline for Monday mornings. Supposedly, this was the result of the recent European elections. But, the market only closed down a miniscule amount compare to what had been expected. Even though the market recovered, the market was hit with multiple pieces of bad news.
On Wednesday, Cisco reported earnings that disappointed the street. Then on top of that, their guidance fell short of the street’s view. The stock fell over 10% the following day. Not that this was bad enough, but on Thursday afternoon, JP Morgan reported significant losses toppling $2 Billion. This dragged down the entire financial sector. One positive aspect of the market was that the broader market actually went into positive territory for part of the day. This proved to me that the market is gaining support. Although, I think the market has a bit more to fall. Although the market could get a boost from Facebook on Friday when supposedly begins trading.
Other then Facebook, there isn’t that much news coming out this week. The market should be driven by Europe for most of the week.