On 30 August 2008, the trading session started pointing downwards, Dow Jones Industrial Index, DJI dropped as much as 160 points and after some recovery, it is currently down by 124 points. It was a disappointing session after the US Government released the data for personal income for the month of July 2008 which dropped by the largest amount in nearly three years.
Dell’s profit report was another disappointing news to the investors which had weighed down heavily on Nasdaq, the index reflecting Technology stocks. Nasdaq is currently down by 38.94 or 1.61 percent.
Crude rose as the Tropical Storm Hurricane Gustav is on its way towards Gulf and Mexico oil facilities.
Putting together all the negative news into perspective, investors went on selling as soon as the trading bell sounded. A slight recovery was seen. But still a three digit points declined with DJI.
Following a series of rallies before this session, a pullback is seen to be a good thing for the market in my opinion. I would believed that the market will continue its path to recovery because the prices of the stocks currently are very attractive and appealing in the long term perspective.
The above is all personal opinion and not at all an inducement to trade.