Volatility continues by Claudia Sonea

Wall Street continues it's plunging and the investors' question about when it's going to end is answered by analysts saying that time will solve it all. The market can not be cooled off especially because there has been no piece of economic data, no corporate earnings report, no move by the Federal Reserve and no government tax plan. However the recent slides might be seen as buying opportunities by bargain hunters, especially due to news like a hefty interest rate cut or better-than-expected profits at the nation's big-name companies. In spite of financial results from multinational companies that make up the Dow Jones industrials â€" Microsoft Corp., AT&T Inc., Johnson & Johnson, Pfizer, Caterpillar Inc. and Honeywell International Inc. that could lead to short-term gains, investors are not yet confident into buying. Arthur Hogan, chief market analyst at Jefferies & Co. explains that there is nothing to confirm their moves, not even expectations of better news. Furthermore, last week there was negative news from Philadelphia Fed, dismal home construction data from the Commerce Department, a worse-than-expected profit at Intel Corp. and historic losses at Citigroup Inc. and Merrill Lynch & Co. Hugh Johnson, chief investment officer of Johnson Illington Advisors, revealed that S&P 500 operating earnings growth was lower in the third quarter of 2007 than in second quarter, and is sure to be lower in the fourth quarter of 2007 than in the third. And last week results when its index dropped 5.41 percent confirm Johnson's statement. Also, more profitable banks, such as JPMorgan Chase & Co. and Wells Fargo & Co. made public problems in a wide swath of consumer credit, from home equity loans to auto loans and credit cards. On 29-30 it will be the Fed's meeting on interest rates and Martin Luther King Day on Monday, a market holiday, is supposed to forecast some of the future economic reports. The Labor Department reports about the jobless sector and the National Association of Realtors' report on December sales of existing homes will be on close supervision. Economists assure that there is nothing to do than to wait and see what will happen next. Stay connected!

related story: http://news.yahoo.com/s/ap/20080121/ap_on_bi_ge/wall_street_week_ahead;_ylt=AkTKVJzOvrDrpbOS.nxv0kas0NUE

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

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