14 Jan 2005 New Year – Same Worries

Earnings season customarily brings stock market volatility and this one is certainly no exception.  As oil prices rise creeping toward their record highs and as several major U.S.industrials warn of earnings shortfalls, the good news has largely fallen on deaf ears.  The Dow Jones Industrial Index declined nine of the last twelve trading days for a 3.2% drop from year-end highs.  The NASDAQ is down 5.5% during a similar period.  Investors seem more cynical in January than they did in December when they chased the Dow up 11% for the month.