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Dow Closes Below 10,000 for First Time in 7 Weeks

Posted by Brian Krassenstein on Aug 26th, 2010 and filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Dow jones 10,000The Dow Jones Industrial Average is shaky enough to get anyone dizzy. Today the DOW dropped below the 10,000 mark for the first time since early June. Concerns about the overall economy, and the legitimacy of the recovery, have investors questioning the equity markets. Early in the day the market rallied and was in the green for an extended amount of time as the Labor Department reported a better than expected unemployment number. The rally didn’t last the day though, and stocks went the other way as the Federal Reserve reported that manufacturing growth in the Kansas City Missouri area fell in August.

“The cumulative weight of all the bad data is just adding up. “It’s like the weight of water behind the dam just pushing for some release,” stated Peter Cecchini, who is chief strategist at BGC Partners.

The market anxiety will continue into Friday when two important events are set to take place. First of all, the Commerce Department will release the most up to date estimate of the 2nd quarters’ GDP. Many analysts expect the number to be revised downward a considerable amount. The second event will be the speech my Federal Reserve Chairman, Bernanke at the Wyoming Central Bank Retreat.

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