Stocks feel bear
Stocks will start the second half of 2008 staring into the jaws of a bear market.
At Friday’s closing bell, it looked like there was little relief in sight from runaway oil prices and the lack of reassurances from bank about their already gloomy outlooks.
Investors will face a blitz of economic data in the holiday-shortened week, with the marquee number coming in Thursday’s payrolls report for June.
Recession fears are rising with crude oil’s dizzying spiral to a succession of record highs and the relentless stream of forecasts for more bank write-downs. When the second quarter ends on Monday, the U.S. market may finish June with its worst monthly percentage decline since September 2002.
“The combination of a banking system that is on its knees and high commodity prices is just making investors nervous,” said Ray Rund, managing director and head of research at Shaker Investments in Cleveland, Ohio cash advance fast cash payday loan. “Even though we are not technically in a recession, it certainly feels that way.”
U.S. oil futures shot up to a record high just a penny shy of $143 a barrel on Friday — wrapping up a week when the president of OPEC predicted that oil prices could rise as high as $170 in the coming months. Gold hit a one-month high.
The Dow Jones industrial average .DJI finished the week down 4.2 percent, while the Standard & Poor’s 500 Index .SPX slid 3 percent, and the Nasdaq Composite Index .IXIC dropped 3.8 percent. It was the worst week for the Dow and the Nasdaq since February 10.
SHRINKING PAYROLLS, SLOWER FACTORIES