This week on “Money Talks,” Matt Hames, CTFA, and Troy Harmon, CFA, CVA, are joined by firm principal Scott Keller, CFA, to discuss Monday’s dramatic selloff. They discuss whether the Fed will raise interest rates in the near future, the price of oil and the last bit of earnings for the season. They experts also answer listener questions on Southern Company’s bid to buy AGL Resources, energy stocks Total SA, Apache Corp and Chevron Corp., and explain why the market’s tumble gave investors a chance to do some tax loss selling.
After a volatile week of trading in the markets, the “Money Talks” experts discuss whether the current market action is merely a market correction or a sign of something more to come. They also discuss why investors want to sell in these conditions.
The week began with the Dow Jones Industrial Average closing at its lowest level in 18 months. The S&P 500 Index and the NASDAQ also lost nearly 4% each in a frenzy of selling. The losing streak continued on Tuesday with a rush of selling minutes before the closing bell. On Wednesday, the three major indices surged nearly 4%, with the S&P pulling itself out of correction territory. Still, Wednesday’s big gains don’t erase the financial pain inflicted by the market’s first 10 drop since 2011. The Dow remained 11.1% off its recent high, the S&P 500 remained down 8.9%, while the NASDAQ composite remains 10% off its high and the small-cap Russell 2000 is down 12.6%. Stocks continued to soar on Thursday as renewed optimism about the U.S. economy eased concerns about the pace of global growth. Oil prices soared more than 10% to their biggest one-day percentage gain in six years amid a surge in commodities. The Commerce Department reported Gross Domestic Product, the broadest measure of goods and services produced across the U.S., expanded 3.7% in the second quarter, well ahead of expectations. The markets ended the week with a whimper, as the major indexes notched gains for the week in a subdued end to one of the most volatile periods in years for global markets. Upbeat economic data has helped reassure some investors that while global growth is slowing, the U.S. remains relatively stable. The Commerce Department said consumer spending rose 0.3% in July.
Our experts answer listener questions on Southern Company’s bid to buy AGL Resources, energy stocks Total SA, Apache Corp and Chevron Corp., and explain why the market’s tumble gave investors a chance to do some tax loss selling.
Trading ended mixed on Friday with the Dow shedding some points and the S&P 500 and Nasdaq stepping up. Indices closed out the week with gains following a multitude of volatile moves.
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