Banks, techs and retailers are the main cause for the sudden plummet in stocks.
U.S's perpetual weakening currency is starting to damage the economy. Imports continue to drop and they are losing alot in terms of exports as well.
Consumer confidence index dropped to 47.7 from 53.3 which is in fact below 50. This means that they are not feeling optimistic about the economy at all and this translates to lower demands and decreased spending on products and services.
With a decline in demand, the share prices of many retailers and service-providers will follow suit (which is to decline) since the situation is rather gloomy at the moment when everyone is sitting on the fence right now, waiting to see what happens next.
The recent uproar about the tax credit for cars and houses seems to be having a great influence on the citizens' perception. It forces them to be skeptical. In that sense, they are compelled to capitulate to the increasing ambiguity by staying low.
Nonetheless, when everything is cleared up, I surmise that the consumer confidence index will rise. Particularly when the White House has just announced that they will extend the house credits to 2010. In addition, they will offer a new target market (2nd-time buyer who has lived in their first house for more than 5 years now) a total credit of $6,500. Definitely a good catch for people wanting to cast their old home aside.
Things to look out for in the technological sector : Windows 7, IBM's DNA processor, HP's printers
Things to look out for in the banking sector : Perpetual low interest rates without any signs of increase in the central banks.
Things to look out for in the energy sector : Rising oil prices but stablised at the moment.
Things to look out for in the aviation sector : China's airplanes, Boeing's new aircraft, Delta Air Lines
Credits -CNNMoney, -innercityelectric, -paulruffle
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