Stock markets rose despite the fear that continuing credit crisis, banking sector problems, record high oil prices, and sliding dollar may slow down the economic growth.The S&P500 gained 37 points, the DOW gained 285 points and the NASDAQ gained 98 points for the week ending November 16th, 2007.
Oil prices continue to rise on the expectations that global oil supplies will remain tight while the oil demand from growing economies like China and India will remain strong.The continued slide of the US dollar is not helping the oil price either, as the weaker dollar makes the oil import more expensive.
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The October industrial production report, which is released monthly by the Federal Reserve Board, showed the sharpest decrease in industrial output in nine months.This is an important economic indicator because it shows the total monthly output of the US factories and mines.The decline in industrial production did not help much to boost the investor confidence about the economic growth.
While the credit crisis and banking sector problems continue to grow, it seems that investors are waiting to see if these problems will get worse in the coming weeks.
Toys remain a question mark for holidays!
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As the holiday shopping season is approaching, people are uncertain about buying toys because of lingering safety, recalls and lead problems. The toy industry is trying to do its best to improve the quality of toys. However, all the required quality checks may not happen before this holiday season.
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A recent poll by a research company showed that one-third of Americans said that they will be buying fewer toys this holiday season due to safety concerns, and 45 percent said they will avoid buying toys made in China.
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Look at labels on your toys and read where they are made.You will find that 3 out 4 toys that you have were made in China.There is a good reason for it.China ships over $30 billion worth of toys globally every year.US companies alone buy over $20 billion worth of toys from China.
Toys?
Professor's Corner
Is there a thing called a “free lunch”?
You may have heard people saying that “There is no such thing as a free lunch”.What does it mean?This is an expression that means that you cannot get something for nothing.Someone who treats you, for say a lunch, often wants something in return, perhaps a favor or help.
Even though you may think that it is free, there is always a hidden cost that must be paid. Chances are that you are paying that hidden cost.For example, the free toys you get at McDonalds with your Happy Meal, you may think they are free but you are paying the hidden cost of the toys with your meal.
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.
What is Currency and Foreign Currency Exchange rate? Volume 14. What is stronger or weaker currency? Volume 20. What does the dollar slide mean? Volume 32.
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