 | MONEY
| 3rd Quarter Ends With A Whimper |
| HOME | PRICE GUIDE | BUSINESS | SPORTS | OPINION | SPECIALS | STORE | ARCHIVES | CONTACT |
|
|
3rd Quarter Ends With A Whimper - Money Matters for 9/30/05 Don Bravo | 9/30/05
US equities markets recorded a less-than-stellar third quarter, though the major indices all closed in positive territory. The Dow closed the day at 10,568.70, up from the June 30 close of 10,274.97, a respectable gain, but the Dow is still lower on the year, down from the December 31, 2004 close of 10783.01.
The Nasdaq was also higher for the quarter but slightly down for the year, though marginally. The Nasdaq ended 2004 at 2,174.63 and closed today at 2,151.69.
NYSE Composite, which has shown strength throughout the year is up sharply from the 2004 close of 7,250.06, ending today at 7,632.98.
It's surely the emerging small and mid-cap companies on the NYSE - in spite of the prevalence of Dow stocks - that are fueling any growth and all gains in the US economy. Those same companies will likely continue to trend higher against other broad measures for the remainder of the year and possibly into 2006.
These mid-cap stocks include a spate of foreign companies in addition to traditional growth companies in the states. Many foreign markets are growing at a faster clip than the US, especially those in the Pacific Rim and South America.
US companies are in a solid position to remain competitive, however, with foreign competition. Wages have virtually stood still in the US, while raw materials have risen for everyone. Additionally, larger US firms have offshored labor that previously was expensive. That's a trend that will continue for US businesses at the expense of the American labor force.
With three quarters in the books, it's interesting to note just how far off most of the experts are in their stock market predictions. It's a safe bet that GDP slowed in the 3rd quarter from the ho-hum 3.3% 2nd quarter reading. The possibility of recession looms larger than ever for the first quarter of 2006, as every forecast for winter heating costs are off the charts, with expected rises of anywhere from 50 to 125% over last year.
If those high costs are realized, the effect will likely be a slowdown in consumer spending and business investment. With oil and natural gas prices near all-time highs, it seems that the only way the US economy can survive is by virtue of a very mild winter or extreme conservation on the part of the general public.
BY THE NUMBERS
Dow Jones: +15.92; 10,568.70 close
NYSE Advancers: 2013
Nasdaq Advancers: 1803
NYSE New Highs: 211
Nasdaq New Highs: 130
Gold: -3.50; 472.30 close
|
