OK, I've been focusing on news/political stories recently, so it's time for a change. I fist heard this story on a radio news report, and decided to check them out online.
Story link: http://money.cnn.com/2009/01/26/markets/thebuzz/index.htm?postversion=2009012615
This story focuses on the stock market day. Normally, if 71,400 jobs are lost in a day, the stock would be sharply lower. However, the Dow Jones stocks "gained 100 points" in early trading and then "were still up modestly heading into the close". Home Depot, which announced that 2% of its workforce and the closing of its Expo Design Center stores, went up in value. Meanwhile, Pfizer, who bought rival Wyeth today, went down by 10%. These should have been the opposite. As the bloglike article states, "Wha?"
The answer to the Dow Jones question is a combination of the Pfizer buyout of Wyeth, the announcement that a British bank would post a profit in 2008 despite the crisis (which sent all of the bank stocks up), and the fact that existing home sales rose 6.5% in December. This may be hope that part of the economy is stabilizing, but the job cuts and layoffs signal a lot more economic trouble ahead. Many experts in the article stated that the rally was sure to be temporary.
About the article itself, it was very well-written. The most important information was at the top, followed by facts/statistics with analysis, and finally quotes by economists. The article was very well-written and unbiased for a blog (which it appears to be). Good job CNN/Fortune!
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