Two days of losses in the markets and exchange traded funds (ETFs) are showing signs of reversal midday as bargain-hunters storm the house.
The attraction of low stock prices has investors’ attention. A worse-than-expected unemployment report didn’t deter those in search of bargains, even though the U.S. unemployment rate is at a 14-year high of 6.5%, reports Sara Lepro for Associated Press.
Investors have been optimistic toward the economy before, buying up bargain stocks only to cash them in when the going gets tough, so the volatility prospect is still strong.
Oil is trading in the $61 range after a 2-day drop amid fears of a larger scale economic recession. More businesses and families are expected to cut back on energy use, especially after the higher unemployment rate unveiled the reality, reports Pablo Gorondi for Associated Press.
The high jobless rate, mixed with uncertain energy prices and an unclear picture of the near future has caused consumers to pull back amid the stress, only to add to the downturn. The American consumer is continuing to put away their wallets and spend on only the bare necessities.
Ford Motor Co. (F) provided further evidence of the weakening economy, saying it plans to cut about 2,260 more jobs and that it burned through $7.7 billion in cash in the third quarter, reports Jeannine Aversa for Associated Press. In 2008, a whopping 1.2 million jobs have vanished, with 240,000 of those cut last month.
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