On November 13, 2007, The Wall Street Journal reported that the Dow industrials jumped 319.54 points, or 2.5%, to 13307.09, which is the second-biggest point and percentage gain this year. On November 14, 2007, Wall Street reported that after the opening bell, the Dow Jones Industrial Average was up 48.86 points, or 0.4%, at 13355.95. Investors are hoping to build on those gains, which included the 319.54-point rally in the blue-chip average that snapped a four-day losing streak. Standard & Poor's 500 was up 8.57 points early, or 0.6%, at 1489.62. The Nasdaq Composite Index was up 0.5%, or 12.47 points, at 2683.15.
The current issues driving the stock market are the high price of crude oil, little consumer spending, concerns about inflation, and the slump in the housing market, and additional government spending associated with military activities in the Middle East.
Another issue that drives the performance of the stock market is the American dollar does not seem to be as “Almighty” right now as it has hit record lows against other major currencies, such as the Euro, the British pound and the Japanese Yen. However, strong economic growth, low inflation, and low unemployment rates should strengthen the value of the dollar.
The economy appears to be weakening as crude oil prices have reached an all-time high and the sub prime mortgage woes are deterring potential homebuyers and creating concern with Wall Street traders. However, the economy and stock markets should perform well in the weeks and months ahead according to Wall Street writers, Gary McWilliams, Cheryl Lu-Lien Tan, and Kelly Evans. They reported that according to consumer surveys it is estimated that holiday spending will rise about 4% that is near the 4.8% average increase for the prior 10 years. Surprisingly, the low consumer expenditure level within the past year indicates that this will not have a major impact on the economy. The stock market will be volatile in the short run as the economy...