Last Thursday, a good number of U.S stocks climbed because of the news that Citigroup Inc decided to support a program that aims to stop the growing number of home foreclosures. Because of this, the drop in Wal-Mart sales was made up for.
On the other hand, the Dow was immensely dragged down. This was caused by a 7.5 percent drop in Wal-Mart. Sales in December was slow-moving, proving a slump in consumer spending and apparently verifying worries of a stretched depression.
The support of Citigroup for programs that aim to help borrowers distressed by foreclosure earned the assistance of one of the biggest retail financial establishments in the country.
The foreclosure proposal is expected to yield a lasting positive consequence on the economic situation in the country. Most definitely, the stock market will benefit from such measures.
US President-elect Barack Obama made another proposal for a wide-scope economic plan. However, some investors are anxious since there was an addition of some minor details.
Shares of Wal-Mart Stores went down to $51.38, leading down Dow seeing that around $16.3 billion of market value was removed from the biggest trader in the world.
The declaration by Wal-Mart was again an austere sign that consumers are still reluctant in spending as the economy has not yet gotten back to its good shape. Consumer spending comprises approximately two-thirds of financial activity in the country. It continues to weaken as families are still worried about threats unemployment, declining savings, and foreclosure.
The first few days of January were expected to show signs of how the entire year will go. Unfortunately, the signs were not good. The real estate market is still in poor condition, foreclosure cases are still evident, unemployment still threatens the working population, and the stock market has been dropping.
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