Today’s Dow Jones industrial average was finished at $ 18,199.33, which was $ 30.06 (0.2%) higher than yesterday’s one. Although Dow Jones industrial average rose, the movements of it continue to be unstable. There are three reasons of the lack of the stability.
- Stock price fluctuation caused by earnings announcement of each company. For example, Apple’s stock price declined and Boeing’s stock price rose.
- The fluctuation of futures prices for crude oil WTI
- Back-and-forth of American interest rate expectation
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Be careful of the American interest rate hike.
Until December of the FOMC, I think that there are lots of various news about the American interest rate hike. “Gradual rise in interest rate” is the default route, but most of the people shown up on the news will be interviewed and make remarks in their own interests. With that in your mind, you need to catch up the news. Already, the expectation “Two rate increases in 2017, three in 2018 ” has shown up.
【BlackRock’s Rieder Sure of December Fed Hike as Treasuries Fall】
http://www.bloomberg.com/news/articles/2016-10-26/treasuries-fall-as-blackrock-s-rieder-sees-fed-hike-in-december
Fluctuation in the Nikkei average stock price by the earnings announcements will continue still.
Today’s Nikkei Stock Average was approaching at 17,346 yen, which was 45 yen lower than yesterday’s one. Opening price of Nikkei Stock Average has fallen because the stocks of Canon and Nintendo, which had the earnings announcement yesterday, were sold. Please do not simply think the reasons why the stocks of Canon and Nintendo fell down are that the earnings forecast became low and expectation of next profit was down. After all, the important point is “ how most investors feel about the downward revision and decline expectation. Even in the case of the downward revision and decline expectation, there is possibility that stock prices rise.
Don’t be a gambler.
Each company’s earnings announcement has been in full swing. You might think that there is a chance to get much profit because of high volatility of stock prices. But please don’t be a gambler. You should check investment schedule carefully.
Caution
The contents of this blog are written based on the personal opinions about Dow Jones industrial average, the Nikkei Stock Average,and the sentiment of short-term investors, medium-term investors, and long-term investors. With respect to the loss caused by investment based on the contents of the blog, I do not take any responsibility.
Thank you,
k-zma
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