After continuing where it left off yesterday, the DowJones (INDEX: ^DJI) slumped this morning, but started gaining momentum just before 12:00 p.m. EST, and is now trading about even. The boost was compliments of the International Monetary Fund, which discussed preliminary plans of a economic package should Spain fail to fund the bailout of Bankia, the third-largest bank in the country.
The number of Americans applying for unemployment benefits has increased for four weeks straight, but the more important jobs data will be released tomorrow. However, today's news is just another signal that the economy is losing steam. As we witnessed yesterday, with news of slowing growth, oil prices drop, affecting energy and materials firms that significantly drive revenue higher during times of expansion.
ExxonMobil is trading lower by 0.35% despite gaining approval to increase its drilling footprint off the shore of Newfoundland. The Dow's second-lightest company on its weighted index, Alcoa (NYS: AA) , is likewise faltering again today with shares falling 0.50%. Also struggling today is United States Steel (NYS: X) , which is in for its second consecutive drop with shares plummeting by 6.52% today.
Wait and see
Right now Zynga (NAS: ZNGA) is starting to trend upwards and is now over 3.24% today. After falling 60% in the past three months, this could signal that Zynga has finally reached its bottom. Facebook (NAS: FB) , on the other hand, is once again getting a haircut. If it doesn't reach bottom soon, the company will soon be getting scalped; it has lost 18% for the week.
It's turning out to be just like every other day this month, with markets waiting to be fed snippets of information. May cannot end soon enough, as the just under 25% of the sessions this month moved by a percent or more, ultimately dropping the Dow by 6.5%. Nevertheless, now is a great time to focus on winning companies with real long-term prospects. Our analysts have a great rundown of three American companies primed to dominate the world by taking emerging markets by storm. Check out this free report now, it is only available for a short time longer.
At the time thisarticle was published Joel South owns shares of no company listed above. The Motley Fool owns shares of Facebook. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.