Getting antsy on Wall Street

Dan Grech Jan 2, 2007
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Getting antsy on Wall Street

Dan Grech Jan 2, 2007
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TEXT OF STORY

SCOTT JAGOW: The US stock markets are closed today to observe the national day of mourning for President Ford. With the New Year’s holiday, this makes four days in a row without trading. As Dan Grech reports, that silence can be deafening.


DAN GRECH: The last time the New York Stock Exchange and NASDAQ were closed this long was more than five years ago.

After the September 11 terrorist attacks, the markets were idle for six days.

Hugh Johnson is with asset management company Johnson Illington Advisors. He says traders aren’t enjoying the current four-day break.

HUGH JOHNSON: It makes money managers very nervous because something could happen that will affect the stocks in their portfolio and they couldn’t do anything about it.

He says this lack of liquidity also could impact stock prices.

JOHNSON: When you close exchanges, in theory what it does it is reduces the confidence of investors in securities. And as a result of that, it does, it does affect price.

Of course, for the die-hard investor, there are always after-hours markets.

These electronic exchanges never close, but don’t offer the same pool of buyers and sellers.

In New York, I’m Dan Grech for Marketplace.

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