FollowMonday is definitely not a great day in the stock market today especially for investors. Gold prices decreased today by 6% after China reported that their economic growth has increased by 7.8%. The growth was slower than what took place in the previous quarter but this what stock market analysts were expecting. Stock futures in the United States were lower but this due to them taking cues from other countries such as Europe where stocks decreased by 1%. Stocks in Asia also experienced a serious decrease in their stocks today. It is obvious that the data released by the Chinese government ended up having negative effects on an international basis, not only on the stock market of the United States.
However, this isn’t stopping investors as most of them are still optimistic about a big earnings week. Citigroup reported their earnings ahead of the trading process today whereas Goldman Sachs, BAC, and the bank Morgan Stanley are all in the lead this week. Technology earnings weren’t affected by the China situations as companies such as Yahoo, Nokia, Google, and Microsoft experienced improvements today. When it comes to corporate news affecting the stock market, Dish announced today that they are currently bidding by $25 million to purchase Sprint Nextel. This comes after an agreement took place between Softbank and sprint. The agreement is considered to be one of the most profitable to take place in the United States during the past ten years.
Thermo Fisher also experienced an improvement in their shares after they finalized the agreement with Life Technologies. The deal is going to be worth $14 billion. On an international basis, Asian market ended up lower today after the data by the Chinese government was released. The Chinese composite decreased by 1.2% whereas the Nikkei decreased by 1.6%. Gold also took a catastrophic downturn during the past few years especially with gold prices decreasing dramatically over the past few years. It is unknown when the price of gold is going to improve again especially with continuous decrease that has been taking place. Keep in mind that gold has never decreased to this extent over the past two years and this is starting to be extremely worrying to investors.
