The Dow Jones Industrial Average (DJIA) dropped below 10,000 at the close yesterday, after rallying all day. While the Dow is up slightly this morning, it remains below the new point of resistance of 10,000.
Earnings reports this morning were mixed. EBAY, a NASDAQ component report earnings that disappointed investors. On the upside, AT & T reported very good earnings on the back of iPhone sales, and McDonalds also reported solid earnings with forward guidance of expected increases in sales going forward.
The weak unemployment report is putting a damper on the market this morning.
Commodities are trading lower as the U.S. dollar has gained some strength this morning, after dropping to a 14 month low yesterday, below $75, against other major currencies. Oil remains above that critical $80 per barrel mark it crossed yesterday.
While some analysts remain bullish and are forecasting DOW 11,000, others say there are too many negative drags on the economy to maintain upward momentum for the markets. The bears are forecasting DOW 9000 before we see DOW 11,000.
Other stories you might want to read:
What the falling value of the dollar means to you
Oil blows through $80 point of resistance
Resources:
Mixed bag on the markets
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