Thursday, March 12, 2009

Stock Market Mixed After Many Economic News Occured

Stock prices dropped when market opened today after S&P 500 cut GE's credit rating. Economic data also add the decline.

S&P 500 said it is lowering GE's credit rating from AAA to AA+. S&P said they believe that GECC is under increasing earnings pressure, due to recent sharp deterioration in general economic conditions around the globe.
But GE said the S&P's action that only cut their rating down one notch and improved their outlook to 'stable' was a good move.

The other economic data added the decline as The Labor Department said that first-time claims for unemployment benefits increased to 654,000. This claims were above analyst's expectations.

Although GE's cut rating and economic data occured, but both GE and stock market still extended their rally. This is the third day that stock market move higher.

I think maybe this is a sign that market are making its bottom, but until now no one could predict the future exactly.


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