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Learn about the factors that cause stocks to go up or down and understand the impact on specific companies and the overall stock market. Explore the Dow Jones and NASDAQ indices, their history, and differences. Make your prediction for the close of DOW and NASDAQ on June 10th, 2010 and have a chance to win extra credit!
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Name Date DOW AND NASDAQ STOCK MARKETS * Extra Credit* 100pts 50pts and 25 pts for the students that have the closest predictions for the Close of the DOW and/or the NASDAQ on June 10th Thursday 2010
UP When there is good news about a company on TV or in the newspaper World events are peaceful When conditions are such that people find it easy to find a job and make more money When things seem to be going much better for myself and everybody else in the future DOWN When there is bad news about company on TV or newspaper When there seems to be a great deal of trouble in the world When conditions exist where it is hard to find work and make money When things are going to be much worse for myself and everybody else in the future. Stock Market PricesWhat causes stocks to go up or down?
Question/Think • Provide an example of when and/or why a specific stock companies value may have gone up or down (lost or gained value). • Provide an example of when and/or why an entire stock market such as the DOW or NASDAQ may have gone up or down • (lost or gained value)
What is the Dow Jones??? • Began in late 1800’s, in New York, by Mr. Jones and Mr. Dow • Consists of older, more established companies • The DOW is an average of 30 industrial stock prices that are used to indicate the general level of stock prices on the New York Stock Exchange • Examples of Dow Jones Companies: AT&T Corporation, Hewlett Packard, Chevron, JP Morgan, General Motors, General Electric, McDonald Corporation, Johnson and Johnson, Coca Cola, Wal-Mart
What is the NASDAQ? • Began in the 1970’s consists of newer companies, especially computer/tech companies, and pharmaceutical companies • The NASDAQ is snapshot of the ups and downs of more than 5,000 companies listed on the NASDAQ stock market. Each company affects the index in proportion to its size, which means bigger companies have more of an impact on the NASDAQ than do smaller companies. • NASDAQ Companies: Ben and Jerry’s, Microsoft, Staples, Intel, Dell Computers, Nordstrom, NEXTEL, Outback Steakhouse
Question/Think??? • What are some differences between the NASDAQ and the DOW?
Current Dow Jones Chart • Range: 2 years ago until now.
Current Value of DOW • As of 2/25/08: The DOW JONES INDUSTRIAL AVERAGE IS 12,431 • On January 4th the DOW JONES INDUSTRIAL AVERAGE WAS AT 13,000 This means that generally speaking the stock market and the US economy are not doing well.
History of Dow • Note: Notice the spikes and pits in the years 1904, 1932, and 2003.
Current NASDAQ Chart • Range: 2 years ago until now.
Current Value of NASDAQ • As of 2/25/08: The NASDAQ’s average is 2,308 • Last year, at this time the NASDAQ average was 2,504
Prediction Slip • Make a prediction (your educated guess) for the close of the DOW and the NASDAQ on June 10th 2010 • Slips are DUE ON or before the end of the period Tuesday March 4!!. • FAILURE TO TURN IN A PREDICTION SLIP MEANS YOU ARE OUT OF THE GAME!