Wall Street still on loss by Claudia Sonea

After the tragic situation on Thursday Wall Street had another difficult session that actually ended with the financial shares lifted many other stock sectors. Continuing credit woes, a weakening dollar and rising oil prices are just some of the reasons for which investors feel unease and despite present situation, they still avoid technology shares after the forecast from Cisco Systems Inc. Federal Reserve Chairman Ben Bernanke warned that the big wave of economic troubles endanger business growth. Appearing before Congress' Joint Economic Committee with the Fed's economic forecast, Bernake stated without giving any solid proves that threats to the economy exists or specific details if the bank is prepared to further cut interest rates. Morgan Stanley, one of the largest and the most reputed investment banks headquartered in New York City, gave detailed accounting of its exposure to subprime debt, pleasing investors by eliminating some of the uncertainty that has wracked Wall Street to varying degrees since the summer period. The Dow Jones industrial average fell 33.73, or 0.25 percent, to 13,266.29; Standard & Poor's 500 index fell 0.85, while the technology-heavy Nasdaq fell 52.76, or 1.92 percent. Brandon Thomas, chief investment officer of Portfolio Management Consultants, the investment arm of Envestnet Asset Management, predicts more volatility before any clarity with the subprime issue. Still, the yield on the 10-year Treasury note rose to 4.28 percent in after-hours trading. The main problems are that the dollar it is still lower against most other major currencies, while gold prices advanced for the fifth straight day as investors looked for alternatives to an anemic dollar. Also oil prices add inflation pressure sums everything up and determine Bernanke to say that until the middle of next year things will not be brighter for Wall Street. By analyzing mixed corporate news like Morgan Stanley it can be seen that it had an increase of $2.49, or 4.9 percent, to $53.68 in stock prices, or other corporate news- Cisco, the world's largest maker of networking equipment, fell $3.12, or 9.5 percent and has an unfavorable forecast. Michael Jones, chief executive at Clover Capital Management, stated that investors are sitting back, analyzing and hunting for bargain in the contest of such a high volatility and lack of stability. Don't go away…more things on investment to come.

related story: http://news.yahoo.com/s/ap/20071108/ap_on_bi_st_ma_re/wall_street;_ylt=AtLdCsZMSPL7Cvj.5ykQuges0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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