Gains From the The Oil Fall

Stocks on the Rise

The oil price hike may have been a problem for quite some time; nevertheless, it seems that stocks are rising due to the falling price of oil.  The oil price continued to drop below $114 per barrel last Monday but was able to recover a bit.  Because Georgia and Russia are still at war over a territory, there might have some delay with some of the oil shipments.  Despite the hostilities, the oil price still is low and seemed not affected by the warfare.

On the other hand, millions are thankful for the lowered oil price.  In the U.S., the average price of one gallon of gas last Monday was $3.81.  This is $ 0.3 lower than the July 17 price of $4.11.

There were many players in the stock market that gained from the lowering price of oil.  Dow Jones Industrial was able to gain 48.03 points or 0.41% to11, 782.35.  While the S&P 500 to get an additional 9 points or 0.69% to 1,305.31.  Nasdaq composite index, on the other hand, was able to have an increased 25.85 points or 1.07% to 2,439.95.

Twenty stocks were able to move higher for each 12 in the negative territory on the New York Stock Exchange.  Twenty to eight positive was for the ratio on the Nasdaq.

Last Friday, Nasdaq was able to rise 2.48%, S&P 500 getting 2.39%.  Lastly, Dow got 303 points or 2.65%.

Losses for Mortgage-Related Securities

Among the U.S. credit unions, the five biggest of them have stated large mortgage-related security losses.  The Constitution Corporate Federal Credit Union, U.S. Central Federal Credit Union, Members United Corporate Federal Credit Union, Western Corporate Federal Credit Union and the Southwest Corporate Federal Credit Union have unrealized paper losses amounting to $5.7 billion.  Reversing the losses can be achieved is stabilization of the mortgage market.

More Stock Market News

Waste Management decided to raise its bid to $6.7 billion for Republic Service.  The country’s largest garbage carrier raised the bar to $37 per share instead of $34 for the Republic.

The Citigroup analyst, upgraded Amazon.com, believed that Amazon Kindle’s sales have the possibility to exceed what the expectation is.

The Clear Channel Outdoor Holdings stated that their earnings are 23 cents per share.  This is relatively higher than the 19 cents they had a year ago.  With this, their revenue risen to 9.3%. As for Fuel Tech, their revenue also raised to 16% because of their 2 cents per share earnings this year compared to their 1 cent last year.

For the European stock index, the FTSE 100 index of London gained some 0.96% to 5,541.80.  Paris, on the other hand, its CAC 40 index was able to get an additional 1.04% (4,538.49).  For Germany, DAX index increased 0.73% to 6,609.63.

The Major Asian indexes were not the same last Monday.  The Hang Seng index of Hong Kong dropped to 0.12% to 21,859.34.  Nikkei 225 index of Japan added 1.99% to 13,430.91.