It is a earning report season now in the US markets. Ford today announced a better than expected result and this good news seem to push the US market higher.
Ford’s loss wasn’t as bad as analysts had forecast, and it used up much less cash during the first three months of the year than it did in the end of 2008. The stock is up 15 percent.
On the other hand, another bad news is haunting another big automotive maker – Chrysler. Chrysler is close to filing Chapter 11 of U.S. Bankruptcy laws as early as next week.
And we are still waiting to see what is the outcome from the GM re-structuring exercise. There is a likelihood that GM might file for a bankruptcy as well.
Dow Jones Reaching Key Resistance at 8,000 Level
Our stock market has been rally for the past 4 weeks. Dow Jones is now trading near its resistance at around 8,000 level. So, the fall of the big giants in automotive industry will definitely have an impact to the world market and likely another round of tsurami is in formation.
Beware, and exercise extra cautions if you are still in the market.
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