Grant ECON DQ 4 - The highest stock point this year was on...

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Stocks rise sharply on signs of economic growth In an article on Forbes.com that was posted today it claims that the stock market had one of it’s biggest rises of the year today based on “signs of economic growth.” The Dow Jones alone rose 249 points today, which was the biggest one day gain since September 1 st . The article also said the payroll services company ADP said small businesses added the largest amount of workers in three years last month. Rising stocks also outpaced falling ones by four to one on the New York stock exchange. From a managerial economics point of view this article in my opinion is a bit presumptuous besides the ADP statistic. December of all months of the year is known to have rising stock prices. The term Santa Clause rally isn’t a coined phrase for no reason.
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Unformatted text preview: The highest stock point this year was on Nov. 5 th. This was two days after the Fed put a $600 billion stimulus plan in motion and since then stocks have only fallen. A one day gain in stock prices is hardly worthy of an article. Though it is optimistic, we are in one of the worst economic times in American history and this influx in stock prices can definitely and probably will cause many Americans that are already struggling financially to lose money playing the market after the rally subsides. Randall, D. K. (2010, December 1). Stocks Rise Sharply on signs of economic growth [business journal article]. Retrieved December 1, 2010, from http://www.forbes.com/feeds/ap/2010/12/01/ general-materials-us-wall-street_8175581.html?boxes=Homepagetopnews...
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