United States stocks tumbled today citing disappointing quarterly earnings and weak economic reports. The Dow Jones industrial average fell 365 points. The S&P 500 and Nasdaq composite also fell but not at the same magnitude as the Dow. In the midst of the growth of the U.S. dollar, the missed earning expectations were seen resulting from falling oil prices and economic issues abroad. It seems the U.S. has gotten through the majority of the effects of the Recession however issues in other countries have effecting the U.S. It will be interesting to see how long these oil prices stay this low and how it will effect further stock market rises and falls.
Source: http://www.wsj.com/articles/u-s-stock-futures-decline-1422365493?mod=WSJ_hp_LEFTTopStories
5 comments:
I do not foresee oil prices remaining this low for much longer. Prices have already started to creep back up. Due to the low prices, countries that rely on oil sales, such as Russia, Venezuela, and potentially Saudi Arabia, will continue to face negative pressure and consequences.
I agree with Emily. Oil prices will not remain low for much longer. As oil reliant countries such as Venezuela and Russia begin to experience rising oil prices I believe the world economy will start to pick up again.
The slump in oil prices is definitely spilling over in the stock market, but seems to be only a part of the reason, and mainly affecting oil companies. The question is if oil prices recover will the stock market recover as well?
Also, since oil exporting countries like Venezuela, Saudi Arabia are not planning to cut back oil production, and US having its own shale revolution, it will be interesting to see what will cause this raise in prices.
I agree with Emily and Matt that oil prices will not remain this low for much longer. It is evident that we can see the prices starting to rise already; however, it will be interesting to see what price oil prices will be at come summer time when more people are willing to travel and how this will affect the stock market then. These low oil prices have taken their toll on countries like Russia and Venezuela that export a great amount of oil. Their economies are struggling and the low oil prices are not helping their economic situations at all. These countries rely heavily on the exportation of oil and as long as oil prices remain this low, I think we will continue to see the Russian and Venezuelan economies struggle. Hopefully, the oil industry can sort itself out and we can see a positive trend in the stock market once again.
I think that oil prices will remain low since the US has began to produce it own oil. Also the development of more fuel efficient and alternative fuels cars should keep prices low.
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