The S&P 500 is recognized as the standard market index for measuring overall stock market activity. In comparison to the S&P 500 Exxon Mobil’s (XOM) stock prices seem to follow the same trend line as the market. When market prices are high, Exxon’s stock prices are equally high, and when the market declines, so do the prices of Exxon stock. For the most part, Exxon’s stock follows the market trend. The difference between the market and Exxon’s prices seems to be that Exxon’s prices typically fall below the market trend line. Although Exxon’s prices range lower than the S&P over the six months studied from May 5, 2010 to November 5, 2010, Exxon’s stock prices clearly show a correlation to the market prices. With this correlation, Exxon’s prices ebb and flow with the market, but Exxon’s prices in the short-run versus longer periods of time seem to move up and down more vigorously where as the market remains more consistent on a short-term basis. See attached chart.

Exxon Mobil is one company who over the past few years despite the recession has been able to post record profits. But, increasing sales and profitability is not always that easy. Despite having gross profits no less than $124,000,000 in 2009, Exxon actually shrank in 2009 versus 2007 and 2008. Exxon’s gross profit went from $171,000,000 in 2007 and ballooned to $188,000,000 in 2008 showing a growth change of +9.8%. While from 2008 to 2009, Exxon’s gross profits went from $188,000,000 to $124,000,000 shrinking nearly -34% from the previous year. While both 2007 and 2008 Exxon had a net income over $40,000,000, in 2009 Exxon couldn’t even break the $20,000,000 mark. Exxon’s decrease in profitability can almost certainly be linked to the global economy’s shift from fossil fuels to alternative energy sources such as wind and solar power and the lowered price per barrel of crude oil seen in the