Tuesday June 1 was another day of volatility for Wall Street.
The Dow was down a 100 points to 11,250 just after opening. Then it was up to break even by 11:00 am, then down again 150 points by 12:30 and finally back up to a positive close of +32. Volatility is usually an indicator of a turning point in the market, for better or for worse, and there was little positive news for bulls.
There was some grim economic news, however, as the New York Times reported that new car sales plunged to their lowest level in a decade, and that Starbuck's will close 600 stores in the US. The company still plans to open 150 stores in Europe over the next three years. And of course, oil passed $143 a barrel. Other economic news from around the world is linked below:
Canadian dollar is expected to fall to $0.90. Economists predict the Fed will raise rates, commodity prices will fall. Globe and Mail
Japanese banks are investing and lending abroad again. Unlike the rest of the world, Japan is 'awash in liquidity.' Economist
Share buybacks are down as companies conserve cash. Will this 'erosion of support' cause shares to go lower? Economist
Ousted AIG chief gets $47 million severance package. AIG has taken more than $30 billion in credit related write downs of late. Financial Times
Technical analyst Louise Yamada sets a 10,000 target for the Dow. This would mean a decline of another 12% from current levels. LY Advisors
BP executives leaving Russia as work permits refused. TNK-BP joint venture, Russia's third largest crude producer locked in control dispute. Telegraph
Inbev in hostile takeover of Anheuser-Busch (BUD)? Inbev "will pursue all available avenues to gain control." Telegraph
OECD predicts sharp rise in UK unemployment; GDP growth estimates lowered. Problems to last through 2009. Guardian
China and India, now the worst of the BRIC markets. What happened? How low can they go? Excellent analysis at Barron's
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