It seems there?s no escaping pessimism about the stock market and the economy as a whole ? even the bookstore isn?t safe.
“If you take a walk through your local bookstore, it?s difficult to miss the numerous books projecting the financial collapse, or the general decline, of the United States,” said Bill Stone, chief investment strategist for PNC.
Along with book titles, consumer confidence and investor sentiment show economic pessimism is very high at the moment, Stone said.
The most recent June data from the Conference Board shows consumer confidence at a 50.4 reading ? the fifth worst since the measurement?s inception since 1967. And July 3 data from the American Associationof Individual Investors showed “bearish” sentiment at more than 50 percent among investors.
“The relentless rise in oil prices has continued to put pressure on the stock market as a whole and particularly the financial sector,” Stone said. “Rising consumer costs continue to provoke concerns about the pressure its puts on a weak economic environment.”
Market pessimism struck four companies in The Examiner Top 10 portfolio last week, as Ciena Corp., Legg Mason, Provident Bankshares and Under Armour?s stock price all reached 52-week lows.
On Friday, Ciena Corp., which opened the year at $33.78 per share, fell to a year low of $20.88, down about 38 percent, and Legg Mason, which began the year at $73.25, hit a year low of $32.61, down more than 55 percent.
Legg Mason, like other investment managers, will swing in the direction of the economy, said Andrew Richards, an analyst who covers Legg for investment research firm Morningstar.
Also last Monday, Provident, which began the year at $21.43, fell to a year low of $5.50, down more than 74 percent, while Under Armour, which started the year at $43.69, reached $24.25, down more than 44 percent.
Under Armour, a discretionary product producer, seems to be caught in a period when most consumers are pulling back on their spending where possible.
Examiner Top 10
The Examiner Top 10 portfolio began Jan. 2, the first trading day of the year, with the hypothetical purchase of one share in each company.
Friday?s Closings
Purchase Close Percent
Name Price July 11 Change Change
Ciena Corp. $33.78 $21.19 -$12.59 -37.3
Constellation Energy $102.13 $79.53 -$22.60 -22.1
Legg Mason $73.25 $33.49 -$39.76 -54.3
Lockheed Martin $105.77 $102.68 -$3.09 -2.9
Northrop Grumman $78.74 $65.08 -$13.66 -17.4
Provident Bankshares $21.43 $5.96 -$15.47 -72.2
Southwest Airlines $12.18 $13.20 +$1.02 8.4
T. Rowe Price Group $59.80 $50.78 -$9.02 -15.1
Under Armour $43.69 $25.40 -$18.29 -41.9
Verizon $43.90 $34.92 -$8.98 -20.5
