By:
Joanna Alexander
Courtney Potter
Will Prout
Kathy Ratajczak
Enjoy the ride!
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Dow
Nasdaq
S&P 500
10,655.30 -258.08 -2.36%
2,335.83 -79.57 -3.29%
1,099.23 -32.19 -2.85%
http://finance.yahoo.com/news
• The Institute of Supply Management
announced on Monday that its index of
factory activity rose to 51.6 last month
from 50.6 in August;
• A separate report from the Commerce
Department showed an unexpected
rebound in construction spending in
August
http://finance.yahoo.com/news/Manufacturing-sector-grows
• Concerns Greece is closer to defaulting;
• Senate panel found that home-health
care firms gamed the Medicare system;
• Slowdown in Venture-Backed I.P.O.’s;
• Global Markets Suffer Worst Quarter since
2008 over fear of Global Recession
• Fear of “contagion” in the financial
system
http://finance.yahoo.com.news
Tuesday Oct. 4
Late surge erases earlier
losses on Wall Street
Dow
Nasdaq
S&P 500
10,808.71 +153.41 +1.44%
2,404.82 + 68.99 +2.95%
1,123.95 + 24.72 +2.25%
Fed Chairman Ben Bernanke said
economic recovery is “close to
faltering”
• Important objective is to avoid fiscal
action that could impede recovery
• Europe’s debt crisis poses “ongoing
risks” to US economic growth
• Recent indicators point to likelihood
of sluggish job growth ahead
• Inflation likely to remain subdued
• Long term interest rates should fall by
.2 percentage points due to Fed’s
September efforts
http://beta.finance.yahoo.com/news
Wednesday Oct. 5
Jobs picture remains fuzzy
• Report announcing the addition
of approximately 91,000 jobs was
released to the public for the
month of September 2011
• Report later revised to record the
addition of 89,000 jobs
Who was the leader in creating jobs during this time period?
• Small businesses employing 1-49 employees was the leader in adding jobs
during this time
Unemployment still remains steady at 9.1% despite job additions.
http://money.cnn.com/2011/10/05/news/economy/jobs_chall
enger_adp/index.htm
http://best-cpa-accountant.com/archives/207
Wednesday Oct. 5
• After a 7 year battle with
pancreatic cancer, Apple
founder Steve Jobs passes
away.
• What affect did Jobs’ death
have on Apple’s stock price?
• Relatively little
• Apple’s stock price rose
from an opening price of
$367.86 to a closing price
of $378.25.
“Steve was among the greatest of American innovators - brave
enough to think differently, bold enough to believe he could change
the world, and talented enough to do it. The world has lost a
visionary. And there may be no greater tribute to Steve’s success than
the fact that much of the world learned of his passing on a device he
invented.”
- President Barack Obama
• How will the market respond to the slightly improved iPhone 4s?
• Seemingly not that different to the iPhone 4
• Will Apple continue to be the innovative giant it has made
itself without Jobs’ influence?
http://www.latestcnnnews.com/apples-ex-ceo-died-at-an-age-of-56.html
http://finance.yahoo.com/q/hp?s=AAPL&a=09&b=5&c=2011&d=09&e=5&f=2011&g=d
http://www.huffingtonpost.com/2011/10/05/barack-obama-on-steve-job_n_997373.html
Obama recognizes Wall Street protestors
Occupy Wall Street started on September 17th
 Protestors are in New York City, Los Angeles,
Boston, San Francisco, Denver, Chicago, and
Philadelphia
 In a press conference on Thursday, Obama
acknowledged the protestors proving further
that they are gaining national recognition
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http://www.usatoday.com/money/markets/story/2011-10-06/wall-street
protests-obama/50679970/1
What are the protestors
trying to accomplish?
Since it started more and more people
have joined the cause
In late September, Labor Unions joined
the cause further expanding the protest
Occupy Wall Street has received criticism
for not having a set of goals they want to
accomplish
Although they are unorganized they are
gaining more recognition everyday
http://www.huffingtonpost.com/2011/10/06/occupywallstreet-signsan_n_998099.html?ref=occupy-wall-street#s393086&title=Members_of_trade
30 Year Mortgage Rate Hits Historic Low
Interest rates fall to 3.94%
This is the lowest rate to date
NOW is the best time to purchase a home
Economic conditions are preventing
people from purchasing homes
15 year fixed rate mortgages also reached
record low of 3.26%
http://money.cnn.com/2011/10/06/real_estate/mortgage_rates/index.htm?section=money_topstorie
s&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+
%28Top+Stories%29&utm_content=Google+Feedfetcher
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Late Wednesday night 205-page draft of
“Volcker Rule” was leaked via the web
Paul Volcker – Fed Chairman from 1979-87
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Do you know what the Volcker Rule is?
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Provision of the Dodd-Frank Wall
Street Reform and Consumer
Protection Act
Volcker Rule aims to restrict
proprietary trading
What is proprietary trading?
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“Trading by banks for their own
profit…encouraged financial institutions to
take excessive risks.” (WSJ Friday 10/7/2011)
Why the need for the Volcker Rule
Repeal of Glass-Steagall Act
Increased speculation by large US banks
largely fueled by proprietary trading
 Financial crisis of 2007-2008
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 $15.8 billion in losses due to proprietary trading
during the crisis (WSJ Friday 10/7/2011)
Obama signing DoddFrank Act - July 21, 2010
Major US Index Comparison (Oct 3 – Oct 7)
Major US indices up between 2 – 3.5% for the week
Source: Yahoo Finance