Saturday, May 5, 2012

stocks market forecast next week may, 7-11 2012

stocks market forecast next week may, 7-11 2012, dow jones next week may7-11 2012, gold prices may 7 2012, : Investors will seek clues from speeches by Federal Reserve officials next week to find out the central bank’s plans following a wave of disappointing data on U.S. employment.

Many are saying that Emerging markets are facing corrections because they are seeing what is ahead of them! I don’t believe all this political and macro things. I don’t think that time has come yet to say that EU will collapse; yes it is true that they are facing extremely hard times. I think what is going on and what will be, these all are laying grounds for big inflows which these Emerging markets are going to get in coming future.

Liquidity is one of the main ingredients behind January, 2012 rally, which market is lacking now. Earning season was good for companies around the world but inflation is not showing any improved picture yet. This inflation situation can deteriorate if any bad news comes from gulf-area. Election outcomes from France & Greece may affect the financial market in coming days. Monthly US jobs report was very important data for market and I think it may change lots of calculations. Here I must say that Friday’s jobs report may create lot of panic among retail and some high net worth investors or for those weak hands who are holding shares in between February end to April. I will think about crash if big institutes (who are mostly immune up to now) participate in that correction.

Next week, “the headlines will focus on speeches from the Federal Reserve to determine what action will now be taking given the soft employment numbers,” said Michael Yoshikami, chief executive officer of Destination Wealth Management in Walnut Creek, Calif. “It is our view that in all likelihood the Federal Reserve will embark on a new quantitative easing policy sometime in the next 60 days.”

Federal Reserve Chairman Ben Bernanke will speak about bank lending in Chicago Thursday morning. Speeches from presidents for the Federal Reserve banks in Richmond, Minneapolis, Dallas and Philadelphia are also on tap.

The speeches come on the heels of disappointing U.S. jobs data in the past week, which showed a slowdown in jobs growth for April.

Figures also showed that Chicago manufacturing eased to a 29-month low in April, consumer spending slowed in March and first-quarter productivity fell. Growth among U.S. manufacturers expanded in April, however, by the fastest pace in 10 months and jobless claims for the week ended April 28 fell for the first time in a month.

Investors have been pouting over a U.S. economy that is “not hot enough for a sustained recovery and not cold enough to prompt Bernanke to institute a [third round of quantitative easing],” said Keith Springer, president of Springer Financial Advisors.

Several major retailers, including department store operators Kohl's Corp. (KSS) and Macy's Inc. (M), are expected to report their latest quarterly results next week. Social media giant Facebook Inc. is expected to kick off the roadshow for its initial public offering Monday, after setting an IPO price range earlier this week that values the company for as much as $96 billion.

Gold gained for the first time this week after a government report showed U.S. employers added fewer workers than forecast in April, raising speculation that the Federal Reserve will add stimulus measures to boost growth. Gold futures for June delivery gained 0.1 percent to $1,637 an ounce on the Comex in New York. Prices fell 1.8 percent in the previous four days. read gold prices predictions next week may 7-11 2012

Against that backdrop, the Dow Jones Industrial Average DJIA -1.27% closed at 13,038 on Friday, down 168 points, or 1.3%, to 13,038, losing 1.4% for the week. The Nasdaq Composite COMP -2.25% fell 68 points, or 2.3%, to 2,956 for the session, down 3.7% for the week, while the S&P 500 SPX -1.61% fell 22 points, or 1.6%, to finish at 1,369, down 2.4% from a week ago. Read about Friday’s action in U.S. stocks.

If DOW turns around at some point of time then it will get resistance at 13200. But in early days of the coming week if it drops more then initial resistance will be at 13050–13100 level. Though all these resistance levels depend upon its moves in early days of the coming week. Investors may feel panic if DOW moves around 13000 –13150 level. I think person who has long position should cover it if DOW drops below 12900.

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