Oil, GM, and Unemployment Hurt Stocks
With high priced oil, GM’s disappointing weak profit outlook, and unemployment on the rise, U.S. stocks finished lower.
“The market’s ugly 2005 continued yesterday as a late-afternoon selloff pushed stocks to their biggest losses of the new year”, New York Post said.
Oil prices are around the highest they have been in six weeks due to cold weather forecasts, possible OPEC production cuts, North Sea storms, and violence in Iraq.
“A cold winter froze the market’s faith today,” Alaron oil analyst Phil Flynn said.
“The terror premium has increased again,” he said in reference to Iraq.
With all of that not helping things, General Motors’ outlook really pushed stocks down.
“You get a little bad news, and there’s nobody willing to step up and buy on the dip,” said Wachovia Securities market analyst, Bryan Piskorowski. “It’s the same pattern we’ve seen nearly every day this year. Investors are being very conservative and playing this day-to-day. It’s not new to the market that GM’s robbing Peter to pay Paul, but it was enough to trigger some sell programs.”
It has not been a very bright New Year so far.
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