- Market Commentary -

February 8, 2010 (FinancialWire) (By Genevieve Hawkins) — Volatility has returned to Wall Street in force as Disney (NYSE: DIS) and Coca Cola (NYSE: KO) stocks try to turn things around in the coming week.

Through last Friday stocks dipped wildly as investors became jittery about government debt defaults, sending the Dow down 0.6%, while the S&P 500 dropped 0.7% and the Nasdaq dipped 0.3%. Now that the anticipated correction is here, investors may be wondering how far indexes will drop and how long the downward spiral will last.

For the coming week investors will be watching for testimony from Federal Reserve chair Ben Bernanke and a stream of earnings reports. Economic readings will include those on consumer sentiment and January retail sales.

The overwhelming investor sentiment is negative, which should lead to a spike from bargain hunters early in the week, but don’t be surprised if Dow closes below 10,000 at some point during the coming week. With mortgages resetting in droves in 2010, a double-dip recession and related defaults are becoming more likely. 

[Go to http://www.financialwire.net/?s=genevieve+hawkins to see more commentaries by Genevieve Hawkins.]

The FirstAlert(tm) “Money Index” is an indicator of the depth of market direction or indirection. While not always including the same stocks, the combined NYSE, NASDAQ and AMEX 25 Most Actives and combined NYSE, NASDAQ and AMEX greatest Percentage Losers and Percentage Winners (weighted against pure monetary loss/gain) indicate the direction in which the mass of money is flowing, as well as the general focus of the market. The most recently published FirstAlert(tm) Money Index Synopses are accessible via FinancialWire.net (at http://www.financialwire.net/?s=index+synopsis).  The data providing the basis for the FirstAlert(tm) Money Index is provided courtesy of Stock Smart, and complete Stock Smart charts and closing summaries are directly accessible via a dedicated Investrend.com webpage (at http://www.investrend.com/fa-index).

The FirstAlert(tm) Economics Calendar lists Treasury auctions 3&6-month bills (11:30 a.m.).

The FirstAlert(tm) Events Calendar showcases CSCO, MSPD, UTEK, MLNX at Thomas Weisel Technology & Telecom Conference; HXM at 7th Annual Mexican Housing Day Conference; LINC, FFIV, PENN, RAX at Deutsche Bank Securities Small and Mid Cap Conference; SGMO, IDIX, NVAX, RIGL at Biotechnology Industry Organization CEO & Investor Conference; WAG, HUM, UAM, WLP at UBS Global Healthcare Services Conference.

FirstAlert(tm) Website of the Day: http://www.dickensmuseum.com/

Quote of the Day: “If I had my choice I would kill every reporter in the world but I am sure we would be getting reports from hell before breakfast.” General William Tecumseh Sherman

Today is: Boy Scouts Day.

Happy Birthday: Robert Burton, William Tecumseh Sherman, Jules Verne, Lana Turner, Jack Lemmon, Audrey Meadows, James Dean, John Williams, Ted Koppel, Nick Nolte, Dan Seals, Mary Steenburgen, John Grisham, Gary Coleman, Seth Green.

Today in History: A doctor in Salem Village, Massachusetts Bay Colony, declared in 1692 that three teenaged girls were under domination of Satan, leading to the Salem witch trials. The College of William and Mary in Williamsburg, Virginia, was granted a charter in 1693. Richard Johnson became the first vice president of the United States chosen by the United States Senate in 1837. The Boy Scouts of America was incorporated by William D. Boyce in 1910. The Stars and Stripes newspaper published for the first time in 1918. President Warren G. Harding introduced the first radio in the White House in 1922. Jay Berwanger became the first person to be selected by a National Football League draft, by the Philadelphia Eagles in 1936. The Nasdaq stock market index debuted in 1971. Proceedings of the United States Senate were broadcast on radio for the first time in 1978.

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