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Bears stroll the markets!
Investors remain concerned about the credit crisis and the growing banking sector home loans problem. The Federal Reserve Bank’s 0.25% cut in the interest rate this week, did not help much to calm the jittery investors. The S&P500 dropped 27 points, the Dow dropped 212 points and the NASDAQ dropped 5 points for the week ending November 2nd, 2007.
The Federal Reserve cut both, fed funds rate and discount rate by a quarter percentage point on Halloween to 4.5% and 5.0% respectively. A cut in the interest rate is good news for the investors and the economy. In addition, government data showed that US economy grew stronger than expected in the third quarter at 3.9% annually. This good economic news was over shadowed by the banking sector reporting losses due to bad home loan and continuing decline in the housing market.
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Fed Funds Rate Cut Discount Rate Cut
4.75% to 4.5% 5.25% to 5.0%
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Jobs gains in October!
The US Labor Department monthly employment report for October showed a gain of 166,000 jobs. October jobs gain came higher than the forecast of 88,000 by the experts. This means companies added twice as many new jobs to their businesses than were expected in October.
Most of the job gains came from schools, hospitals, restaurants, hotels, temporary-help firms, legal services, accounting companies, government and other places. These hiring increases more than offset the job losses at factories, construction, and mortgage businesses due to the growing housing and home loan problem.
The US Labor Department also stated, that for the month of October, unemployment rate remained at 4.7%, which is considered to be low by historical standards.
Jobs are important, because, if people do not have jobs, they don't want to spend money and buy goods. When people do not buy goods, then businesses cannot sell what they make. Businesses soon start to reduce the number of people they need. Soon unemployment starts to increase. This starts the cycle that is not good for the people and the economy.
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Google stock rockets to a new high!
The Google (Ticker GOOG) stock reached a new high this week of over $700 per share. Yes, you read it right. Google’s stock was up over $34 per share this week to reach a new high of $711. The surge in Google’s stock price came after Google confirmed that it will enter the social networking business. It also said that online social networking leader MySpace, is among the web sites that will host interactive application from Google's "OpenSocial" platform. Just five weeks ago, we had reported that Google's stock price exceeded $560 per share.
In 2006, Google had sales of over $13 billion and employed over 10,000 people. Google is known for its advertising and Internet search solutions worldwide. Google also owns YouTube, the company that lets users find, upload, view, and share video content. It is based in Mountain View, California.
Google was founded just 9 years ago by Sergey Brin and Larry Page, two young computer science doctoral students at Stanford University. The Google stock has increased by more than six times from its first public stock sale (also called initial public offering) price of $85 in August 2004.
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$711/share
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$560/share
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What do you know about your money nicknames?
US dollar nicknames - Buck, Clam, Dead President, Bone, Coin, Frog, Ducket, Cabbage, Green, Potato, Cash, and Greenback. You will also hear Washingtons (for $1), Jeffersons (for $2), Lincolns(for $5), Hamiltons(for $10), Jacksons (for $20), Grants (for$50), and Benjamins (for $100) based on denomination.
Canadian dollar nickname - "Buck," as with the US dollar, Loonie, le dollar, piaster, piasse, huard, and more.
British pound - Quid, Nicker, Squid, and more.
Mexican pesos - Varos, bolas, lanas, lucas, papiros, morlacos, and more.
If you know of other names for the key currencies that we cover, please send it to us.
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Learn more about...
What is Credit History? Why is it important to have a good credit history? Volume 12.
What is Economy, Business, Workers, Goods, Services, Stock, DOW, S&P500, and NASDAQ in Volume 16.
Does it pay to study hard? Volume 17.
What is Currency and Foreign Currency Exchange rate? Volume 14. What is stronger or weaker currency? Volume 20.
How does money grow in a bank? Volume 21.
What is Fed Funds rate and Discount rate? Volume 22
What does the interest rate cut mean for you? Volume 23.
How to read stock information? Volume 25.
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Oct 29 - Nov 2, 2007
Weekly Stock Market
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Bear Market-Stocks down!
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Index
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Change
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Last
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DOW
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Down 212
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13,595
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S&P500
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Down 27
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1,510
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NASDAQ
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Down 5
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2,810
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Foreign Exchange Rate
$1 is equal to
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Currency
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Change
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Last
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Euro (€)
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-0.00
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0.69
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Yen (¥)
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+0.48
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114.71
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Pound (£)
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-0.01
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0.48
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Yuan ( )
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-0.03
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7.46
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Rupee (Rs.)
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-0.01
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39.32
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Canadian (C$)
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-0.03
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0.93
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Your Favorite Stocks
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Company
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Bought one stock in Jan-07
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This week stock is?
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Your gain or loss?
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$34.20
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$33.92
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-$0.28
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.jpg "Kellogg (Ticker is K) has over $11 billion in sales. It is know for ready-to-eat cereal and convenience foods.")
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$49.89
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$52.58
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+$2.69
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$43.87
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$59.02
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+$15.15
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We use multiple information resources, such as, websites, companies, stock exchanges, newspapers, and others.
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