Thursday, August 19, 2010

Why did the Dow Jones take a tumble?

What caused the Dow Jones to take a tumble today? Read the article following the link above-- click on the title. Read the article and then comment on the reason given and make a prediction of what will happen this Fall and winter.

35 comments:

KCollins5 said...

To summarize this article, it was mainly about how the job market on wall street is doing. With the high unemployment rate rising, it's causing a panic. Many people are believing that the economy is going to fall back into another recession.

smobley5 said...

This article explains that even tho people consider us to be out of the recession, the economy is showing signs of slipping back in. With the economy on a roller-coaster, it could very easily slip gradually back into a ditch durring this fall/winter season. The amount of using unemployment benefits is increasing week by week. This could be signs of another recession already stirring back up.

smobley5 said...

This article explains that even tho people consider us to be out of the recession, the economy is showing signs of slipping back in. With the economy on a roller-coaster, it could very easily slip gradually back into a ditch durring this fall/winter season. The amount of using unemployment benefits is increasing week by week. This could be signs of another recession already stirring back up.

Anonymous said...

This article talks about how the economy keeps getting worse and can easily go back into a recession. It also talks about how there is a down fall in stock marketing which also gives clue that we could possibly go into a recession.

Anonymous said...

With the stock market falling, and unemployment rising people are worried that another recession is coming soon.companys are scared to hire new people and that hurts the stock market in some weeks. Investors are unsure about the direction of the economy.

Alex said...

To sum this article up,our government fears we are falling back into a recession. Although corporate spending is up and is otherwise seen as a good sign for a healthy economy, other businesses have been weary about adding new workers after last weeks recent fall in stocks. This has also led to a tremendous increase in the unemployment rate. The unemployment rate is one of the biggest hurdles for staying out of a recession. If we continue to keep up the corporate spending and can lower the unemployment rate, economic reports say we can settle or otherwise eliminate the fears of a second recession. Honestly in my views i don't see the unemployment rate decreasing anytime soon which concludes me to think that we are in for a second recession in some degree.

Aandrew5 said...

The market took a "tumble" because investors are not confident enough to invest and so do not contribute to market growth. The article referred to the unemployment rates and the "Philly" number that cause a lack of gusto in investors. No one can really blame them after seeing the staggering losses in the market. My prediction is that the market will recover soon. Wether it be next week, next month, or next year, investors, and company's will soon flock back to the stock market. The article mentioned government bonds; the reason everyone doesn't just invest in a government bond which is a safer investment is because the stock market usually over time brings back better returns and therefore more money.

Anonymous said...

Basically, this article is saying how the government thinks that our economy is going to slip back into a second recession. Corporate spending is up which leads to the idea that the economy is prospering but, the unemployed rate continues to climb. This is a sign of a possible second recession in the future. If we want to stay out of this predicted second recession then corporate spending needs to stay up and our unemployed rates have to drop otherwise i see a second recession to follow.

kmyers4 said...

Basically this article is talking about how the StockMarket has been taking a big tumble lately due to the higher unemployment rates. Also, that due to those rates, and the hesitation of the investors in the stock market, the country could easily fall back into a recession in the coming winter and fall months.

edifruscio2 said...

This article is talking about how the stock market has been taking a tumble because of unemployment rates. Many people think that the economy is going to go back into another recession. If unemployment rates do not drop, I believe that there will be another recession.

Sarah Leighton said...

I think that this country could easily fall back into another recession. The stock market has been hit by this a lot, and espically lately. Unemployment is at a 10.5 percent, and the benefits are greatly increasing everyday. I think it's only a matter of time until we get hit again honestly.

lhall2 said...

Dow Hones took a tumble because unemployment benefits rose unexpectedly and manufacturing activity in the mid-Atlantic region dropped.

This fall and winter we are told that the economy has a very good chance of growing.

Evanpetten2 said...

Like a domino effect, unemployment rates are rising and that is causing people to panic. The government thinks it will put the US in another recession. This could easily happen if unemployment rates don't decrease.

DDix2 said...

It describes how we are not far from being back in a recession. And after the fall of the stock market business owners are afraid to hire new workers which is increasing our unemployment rates.

emaloney2 said...

With unemployment rates rising everyday, the risk of another recession is very likely. To contribute to our declining economy, the stock market isn't very steady either. The down fall of that could be the kick off of yet another recession.

Anonymous said...

Well, the market was headed for collapse in the Clinton era with all the bad home loans and such. This finally grew into a problem and the investors got scared and ran. The market started falling and suddenly crashed at the end of bush's administration. To sum it all up, bad home loans, scared investors, and a market too fragile to handle uncertainty

JCallender2 said...

This articles explains that the government thinks our countries economy is headed towards another recession, but what else is new. DOW took a 'tumble' because investors are afraid to lose money and invest it. In my opinion I feel like the government will always fear for the worse for our country. Stocks will always continue to climb and fall. Its a cycle that will never be broken. We have dug ourselves into a 13 something billion dollar hole that we'll never be able to get out of, but it doesn't mean we don't have room for improvement.

DBrice5 said...

To Summarize This Article, The Government Thinks We Are At Risk Of Falling Back Into Another Reccesion And That Jobs On Wall Street Are Being Lost Due To The Economy. :(

AClinard said...

During my reading the first few paragraphs of this article, I noticed the phrase:

"The pair of economic reports followed news that Intel Corp. was acquiring McAfee Inc. The deal, valued at $7.68 billion, was not enough to offset the weaker economic readings."

This may be a possible explanation for the spike in unemployment claims. When a company merges with another (especially two large companies like McAfee and Intel) some people have to be "let go" so employees from the buying company can put in those positions. So it may be likely that when these companies merged, possibly hundreds of jobs were lost, thus the spike in claims.

kmabry4 said...

The articles says that the economy is not improving and how the government thinks that the United States will fall into another recession. The fall and winter seasons are not looking good for the economy. It looks like it's only going to get worse.

TylerMcLaughlin5 said...

This article is about how bad the economy and/or stock market is doing because of high unemployment rates and lack of investors. although the economy appears to be improving, i fear we are going to slip into another recession.

Tyler Michael Joseph O'Dell #2 :D said...

The Dow Jones article talks about how we may fall into a second recession due to the increasingly high unemployment rate. In order to get out of this predicament, the unemployment rates need to gradually drop.

Grudd4 said...

To sum up this article,our government fears that we may fall back into a 2nd recession. Although corporate spending is up and is a good sign that economy is rebounding from the recession. The stock market is very unstable according to the article because investors are not confident enough to invest, which does not contribute to positive stock market growth.

mhurr2 said...

this article basically states that with the stock markey showing no immediate sigh of aa reboung companies are scared to hire new workers. this is causing people to fear that our ecomonmy is gonna slip into another reccesion even though we are technically out of the last recession. though business spending is up there is still a very high level of unemployment.

mhurr2 said...

i belive that in the coming fall an winter with the way things are going now that we will fall into another reccession.

NJohnson4 said...

This article explains how the high unemployment rate is causing more people to try and get whatever they can out of the government. This makes it even harder for the government to try and dig the country out of the current recession. With the recession not looking like its going to get any better, investing in the stock market will start to slowly fall. With that comes the fear of yet another, and possibly a worse recession in the months to come.

wilmerashley5 said...

n this article it talks about how they think the economy will go back into a recession.The Philly Fed manufacturing survey was negative 7.7 for August after a reading of positive 5.1 last month. I think in the fall we will increase, but during the winter we will go into a recession.

wilmerashley5 said...

n this article it talks about how they think the economy will go back into a recession.The Philly Fed manufacturing survey was negative 7.7 for August after a reading of positive 5.1 last month. I think in the fall we will increase, but during the winter we will go into a recession.

wilmerashley5 said...

n this article it talks about how they think the economy will go back into a recession.The Philly Fed manufacturing survey was negative 7.7 for August after a reading of positive 5.1 last month. I think in the fall we will increase, but during the winter we will go into a recession.

katy02 said...

this article is about is about jobs/high unemployment also alot of people are saying that the economy is going to go back into a recession

MBarton said...

The reason that the Dow Jones took a tumble today is that the manufacturing activity has dropped during August. The number of jobs has dropped so the production rate has dropped too. Bond prices rose as a result of the decrease in production and weak jobs. There is fear of a second recession.

aglobke5 said...

It's all about how the market on wall street or the stock exchange is doing, and i'm sure they will be able to recover from there tumble, its mainly because of the recession.

dbrown5 said...

Dow Jones tumbled because the economy is bad and people get very worried about spending their money and this causes certain stocks to fall because less money is invested in them.

blake davis4 said...

The article is overview on the job market on wall street.The unemployment rate is sky high and how things could easily change by one little thing and how we could fall back into that deep recession we recently have been in.

Anonymous said...

This article is about the overview of the job market. Even thouigh we are out of the recession many believe the economy to be slipping. With the unempolyment rate on a rise, there is a panic.