Kiss Dow 9,000 goodbye

July 23, 2009

Looks like those awful Microsoft numbers will underwind a lot of today’s big gain on Friday.

In afterhours trading, shares of Microsoft are already down 8%.

13 comments

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How can anyone be surprised? What is surprising is the fact that so many investors and government officials are so desperate for a return of a “normal economy” that they are willing to pour good money into a lost cause. The stock market is a sucker’s game, a sham, and only a fool could blindly march into the abyss!

Posted by Erik Gustav | Report as abusive

yep.
what Erik said

Posted by yr | Report as abusive

What said above is 100% correct. The bail out money given to banks and wall street bankers is being used to falsely raise the stocks. The govt is totally playing a corrupt role.

Posted by Bobby | Report as abusive

Really Sherlock. What do you think would have happened if the banks were not bailed out?

There are all kinds of complications beyond the stock market that we would be complaining about if the government didnt bail out the banks. Credit? Consumer confidence? Intenational confidence – and all the vulnerablilites that those conditions imply to state a few.

Posted by Pamela | Report as abusive

the point being missed is that well run companies are showing profits, and poorly run (usually companies that are large or mimic others) are not meeting expectations..Tells you that we we believe in the big Microsofts are suckers born every minute for the stock traders and money managers who get rich daily trading stocks…it does not matter if a profit or loss,,,just a trade that makes money. So look at the well run and forget aboout averages until the poorly run managment is filtered out of the business world.

Posted by glenn | Report as abusive

What does underwind mean? Is that a word?

Posted by Mario | Report as abusive

Microsoft is down because the techs are still dodging Vista for XP. Xp has a built in RAM limit of 3GB, so I expect Windows 7 will do better than expectations. Windows 7 doesn’t sound like a cute marketing tag, but an actual new product. I didn’t touch vista because it was named vista.

Posted by Cheshire | Report as abusive

the government role is to help. it chose $$ instead of management. It gave the $$ (of the people) to the wrong party. The banks and insurance companies received the money and the people are still in default. Had it given the money to the people with the condition to pay off their loans to the banks, the people would have become debt free and the banks would have gotten their money.

Posted by julien | Report as abusive

The current system is corrupt.wall street bankers took the money not to lend or try to return the economy to normal state.they choose push up stock prices up.don’t be fool to follow these crooks.wait for a good pullback.

Posted by cem | Report as abusive

If the bailout had not happened .. the economy would have been worse and bigger corporation would have failed leading to huge unemployment, also money would have been difficult to come, with people keeping closer tab to their purse … The goverment effort needs to appreciated. Stock market is the life engine of the economy and its one of the best place to raise capital for corporation for growth for start up etc.. if these were not there .. everyone would have depend on the government for employment or the entire captial would become costly forcing companies expansion and startup out of the window. so each improvement in stock would bring in liquidity and relive the credit pressure ..

Posted by shivaprasad | Report as abusive

At 9000 the Dow and S&P are nearing a PE for 2009 of 22. Earnings season was a ruse as expectations were about 1″ off the ground. Sales declined anywhere between 5-15% YOY…. yet the talking heads at CNBC do their best with GS to “pump her up” only to take her back down again.

The Dow has gained 11% in 10 days from a point where it was expected to correct. Commercial and residential real estate continue to default, sales were up in residential 3.6% only due to distressed sales increases.

But stock if you want, but my common sense says this is a sucker’s rally.

Posted by Matthew Miller | Report as abusive

This can only wonder. Investors and government officials for the big money has always been ready and all.
Corruption everywhere. Today on the news showed how arrested 3 of Mayors and 5 rabbis. What to say?
It is necessary to restore the stock market in the normal mode of government forces. Loans are still not yet solved the problem.

It’s 1934, I’m sure the worst is over.

Time to buy! Um, you first though.

Posted by Mark Godfrey | Report as abusive