Investors wonder if economy has hit bottom

This morning, we get more jobless numbers, more Wall Street scrutiny in Washington, and more reports on how much money companies made in the last three months.

Investors hope it all adds up to a better day in the stock market.

Your retirement account probably took a beating yesterday. It’s like the economy’s taken a nasty punch and is struggling to get up before the referee yells knock-out!

Hundreds of Dallas teachers recently got pink slips.
Teacher Tiffany Shannon says “we just pray and hope everything will turn out okay.“

The government’s weekly jobless claims come out half an hour before the market opens this morning.

Yesterday’s 500-point slide has investors wondering if they’ve hit bottom.

Portfolio manager Gerald Jordan says “the market’s dropped 10% to 20% in a week that is almost always, always the bottom.“

Earnings reports, like Wachovia’s near $24 billion loss, led to thursday’s selloff.

UPS reports today.

One analyst says the market’s reaction is a healthy sign.

Financial advisor Ric Edelman said “we’re worried about normal market stuff as opposed to global financial meltdown which was a conversation we were having not very long ago.“

To prevent global meltdown, with Japan’s Nikkei index at a five-year low, President Bush is bringing leaders of the world’s top 20 economies to Washington next month.

White House Spokesperson Dana Perino said “they have emerging markets, they’re important on a variety of levels to the global economy.“

Today, more hearings on Capitol Hill after the Wall Street firms that rate investments took heat for letting bad mortgage debt slide for years.

Rep. Henry Waxman, Chairman of the House Committee on Oversight and Gov’t Reform, said
“federal regulators ignored the warning signs and did nothing to protect the public.“

Jerome Fons, a former Moody’s Corporation Executive, said “a drive to maintain or expand market share made the rating agencies willing participants in the shopping spree.“

But even in this weak economy, Wal-Mart says it can’t keep some luxury items on its shelves.

Wal-Mart CEO Lee Scott said “when it’s something the customer wants, the customer seems to have the capacity to buy it.“

Low gas prices seem to be helping consumers make ends meet.