Dow Gives it All Back on TuesdayYesterday's surge reversed itself in trading today, with stocks losing ground everywhere they made gains yesterday. The Energy Minerals and Manufacturing sectors were hardest hit, with losses widespread across the market. The Dow lost 212.33 points in trading today, and closed at 17,402.84. The NASDAQ lost 65.01 points in trading, and closed the day at 5,036.79. The S&P 500 was down 20.11 points, and closed at 2,084.07.
Google Restructures as AlphabetThere was big news in the aftermarket yesterday, as Google (GOOG) announced a restructuring move that would make it a subsidiary of the newly-created Alphabet Corp. Alphabet, which will retain Google's senior management and even its ticker symbols, according to a blog post from the search giant, is set to come into business later on this summer.
Alphabet will act as a holding company for all of Google's new ventures, including self-driving cars and a venture capital arm.
Oil Hit Hard in Trading TodayThe price of oil was hit hard in trading today, and fell below $44 per barrel for the first time in a year. It dragged the Energy Minerals sector down with it, as usual, and created a mess in the already-weakened marketplace. The price of crude oil is expected to keep falling until either demand increases or supply decreases -- a glib assessment of the marketplace, but an accurate one.
China Devalues Currency, World Markets CrashWorld markets -- including all three major US indices -- were down today on news that China had voluntarily deflated its currency. The economic situation in China is volatile, and the Yuan is pegged to the dollar. This means that, unless China grows at a similar pace as he US economy, inflation is inevitable.
In order to combat that inflation, China lowered the value of its currency. The move is expected to hurt US exporters, but help those in China. The fact is that goods and services can be exported more cheaply in other countries than China at this point, a fact which threatens to cripple China's huge manufacturing sector.
In order to preserve manufacturing and help fight inflation, China pegged their currency 2% lower than the US dollar. Although there will likely be pain from overseas exporters, China's suffering middle class has broadly welcomed the news. The price differentials in China are outrageous, with some parts of the country paying much more than Americans do for staple foods like rice and eggs.
Published on Aug 11, 2015By Aaron Phillips