The Dow is facing a test at 8,000.

Source: Internet
Author: User
U.S. stocks weekly review-Guo Xinlin U.S. stocks last week's decline was the second in 10 weeks, and the company finally ended a 9-week-long trend. The Dow fell 3.57% per cent throughout the week, with the S & P 500 index down 5%, while Na also fell 3.38%.  Bank shares have been the main driver of the fall under the pressure of raising capital, but the biggest Dow-Jones component is GM, which recently exploded with the news of shutting down 1100 dealers and wondering how many people are losing their jobs. Last week's economic data in the US was mixed, but on closer inspection, important retail and employment data were worse than expected, while some obscure economic data were better than expected.  Bull bulls, of course, can blame the car industry for layoffs on the unemployment data but looking at GM's development, I am afraid the worst time has not yet, a country into recession, the first shock must be the production of inefficient industries, we can not see the car industry layoffs as an individual incident. In fact, the bad things are not just these, including the U.S. fiscal deficit in April, vowed to reduce the U.S. fiscal deficit in the Obama administration in the traditional deficit in April to a big deficit, do not know how his commitment to cash, he also last week to the national appeal can not rely on China to buy U.S. debt days,  But one of the ways to boost employment is to increase government jobs, and it's not clear how America is getting out of the red. The problem also includes credit cards and insurance companies, one reason American Express's share price soared in March was that its credit-default rate was better than expected, but the default rate given in April was staggering, with both Citi and rich countries having double-digit credit default rates, and the US has lost 2 million jobs this year, It is doubtful that the figures for March have been created, and it is hard to trust the reliability of data on US financial institutions, and investors should not forget the negative impact that we mentioned last week on the credit card business that the US was about to pass through the credit-card reform bill.  JPMorgan Chase, Citigroup, Bank of America and American Express are the four major credit card issuers in the United States, they have to face the rise in credit card defaults, but also face the law on the charging of high penalty, then the prospects for this business is conceivable, just "good" financial stocks of the days are afraid to start again sad. The insurance companies then reach out to the government after investment banks and banks, of course, their prominent representatives were AIG, but AIG was more than a traditional insurance business problem, but because of the problems of doing nothing, and the U.S. government has reached out to six life insurance companies, although the shares of six companies were mixed in Friday, But spending 22 billion of billions of dollars on the tarp, which is only about more than 100 billion, does the U.S. government say 700 billion is too early to spend? Will the financial deterioration of the insurance companies cause the financial industry to fire even more?  These questions are worth staring at with wide eyes. U.S. stocks face little economic data this week, but the stock market believes that volatility remains, and if the aforementioned factors worsen again, the U.S. stocks are absolutely not missingThe reason for the lack of downward, and the author has always been the most concerned about the unemployment rate in the car industry will continue to deteriorate in the haze, so the U.S. stock market is a big opportunity to decline for two consecutive weeks, the Dow Jones 8,000 points this psychological point to pay attention to. The dollar index and the US debt market, which are often mentioned, should remain highly valued, after all, whether the US can raise funds is the key to weather the crisis.

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