Stocks continue to struggle today on the stock market as Dubai remains a bit of an issue. Also contributing to the bearish slant to today’s trading is the fact that Black Friday sales ended up being mixed. However, stocks aren’t down as much as they could be, since there are some silver linings to the stories dominating the markets today.
Dubai isn’t that big a deal
While the reaction on Friday to Dubai’s possible debt problems was huge, over the weekend, investors realized that U.S. direct exposure to Dubai markets isn’t that big. Additionally, the UAE promised to provide funding for Dubai banks, and things appear to be relatively contained for now. That has some investors breathing a sigh of relief.
Cyber Monday might make up for Black Friday
The other issue giving investors pause this morning is the lackluster sales performance on Black Friday. Yes, sales were higher than last year. But only just higher. And individual spending on Black Friday was down. This indication that consumers are still holding back has some investors concerned about economic recovery, since consumer activity is such a large part of economic activity. However, there are hopes that today, Cyber Monday, will make up for it as consumers look for online deals.
In the end, though, it is clear that investors are mostly waiting. They are waiting for indications of how the holiday shopping season will go, and for indications about how bad things are in Dubai.
Image source: Imre Solt via Wikimedia Commons
Post from: EveryJoe