forum Politics and Society ›› Stock Market Crashes 300 points ›› new reply Post Reply
white trash dirt bag
pass the whore
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June 2 2011 6:12 AM   QuickQuote Quote  
Dow tumbles 280 points amid economic fears

PAMELA SAMPSON, AP Business Writer Thursday, June 2, 2011

NEW YORK -- Fears that the economy is stalling sent the Dow Jones industrial average down 280 points Wednesday, erasing more than a quarter of the stock market's gains for the year. Treasury bond yields fell to their lowest level since December as traders put a higher value on safer investments.

The Dow Jones industrial average dropped 279.65 points, the biggest point drop since June 4 of last year, and the largest percentage drop since August. The S&P index lost 30.65, or 2.3 percent, to 1,314.55. The Nasdaq composite fell 66.11, or 2.3 percent, to 2,769.19.

The yield on the benchmark 10-year Treasury note fell to 2.95 percent. Bond yields fall when prices rise.

Doubts about the economy's strength that built in May were compounded by weaker-than-expected reports on manufacturing and jobs. The poor reports, plus a decline in automobile sales in May, led several economists to lower their expectations for the year. JP Morgan was among a handful of investment banks that lowered its estimate for gross-domestic-product growth in the second quarter to 2 percent. The downgrade followed one the bank issued last week. The Dow was down nearly 180 points in midday trading and lost 100 more points after noon as asset management firms sent notes to their clients announcing their economic revisions.

The latest reports on retail sales, first-time applications for unemployment benefits and factory orders will be released today, and analysts say any additional signs of economic weakness could push the market even lower.

On the heels of those readings, the Labor Department's more comprehensive jobs report, which includes hiring by both private employers and the government, will be released Friday. Analysts already are expecting those figures to be worse than they anticipated just a few weeks ago.

Still-high gas prices, a continued housing-market decline, weaker-than-expected GDP and tepid consumer confidence -- along with concerns about debt problems in Europe and the debt ceiling in the U.S. -- have weighed on markets.

More evidence the U.S. economy has hit a soft patch and political uncertainty in disaster-hobbled Japan sent world stock markets sharply lower Thursday.

Oil prices fell below $100 a barrel after a report showed an unexpected jump in U.S. crude supplies, suggesting demand is weakening. The dollar weakened against the euro and the yen.

Markets were down in early European trading. Britain's FTSE 100 was 0.9 percent down at 5,872.96, while Germany's DAX slid 1.2 percent 7,129.62. In Paris, the CAC-40 was 1.3 percent lower at 3,912.37.

"I think right now there's almost a market consensus of the slowing down of economic growth around the world," said Linus Yip, a strategist at First Shanghai Securities in Hong Kong.

Recent data shows first-quarter GDP drops in India and the Philippines and a slowdown in Chinese manufacturing growth, he said. Those indications come on top of a recession in Japan sparked by March's earthquake and a debt crisis in smaller European nations that threatens to infect the region's larger economies.

Japan's Nikkei 225 fell 1.7 percent to close at 9,555.04, as a leadership crisis hurt investor confidence. Prime Minister Naoto Kan, who defeated a a no-confidence vote in parliament Thursday, told members of his deeply divided party that he feels it is his duty to carry on leading the recovery from a massive earthquake and tsunami on March 11 but would consider resigning once efforts begin to take hold.

Kan has been criticized for delays in construction of temporary housing for evacuees from the March 11 disaster, lack of transparency about evacuation information, and a perceived lack of leadership.

South Korea's Kospi index was down 1.3 percent at 2,114.20, a day after the government reported that the country's consumer price index rose 4.1 percent from a year earlier. The rate has been above 4 percent for five straight months, which is outside the Bank of Korea's so-called tolerance range for consumer price inflation.

Australia's S&P/ASX 200 index shed 2.3 percent to 4,600.40, with mining shares hit hard by expectations of weaker worldwide demand. BHP Billiton, the world's largest mining company, lost 2.2 percent. Rival Rio Tinto fell 1.8 percent. Energy Resources of Australia Ltd. toppled 2.7 percent.

Hong Kong's Hang Seng index fell 1.6 percent to 23,253.84. CNOOC, or China National Offshore Oil Corp., sank 2.2 percent amid falling oil prices. PetroChina Ltd., the publicly traded unit of China's biggest oil and gas company, lost 2.1 percent.

Chinese banking shares also stumbled. Agricultural Bank of China Ltd. plunged 4.1 percent, and China Merchants Bank slid 3.4 percent.

Shares in mainland China dropped, with the benchmark Shanghai Composite Index sinking 1.4 percent to 2,705.18 after dipping 2.4 percent earlier in the day. The Shenzhen Composite Index of China's smaller, second exchange lost 1.5 percent to 1,105.95.

"A correction may be taking place. Concerns over negative information such as slow economic growth and inflation are making investors gloomy," said Yang Yining, an analyst at Capital-edge Investment & Management Co., Ltd, based in Shanghai.

Doubts about the U.S. economy's strength were compounded Wednesday by weaker-than-expected reports on manufacturing and jobs. Any slowdown in the U.S. economy, the world's largest, will ripple around the globe and hurt exporters in the many nations that rely on America as a key market.

The only good sign following all the bad news was that "we did not see panic selling," said Tey Tze Ming, a manager with Saxo Capital Markets in Singapore.

The Institute for Supply Management's manufacturing index fell to 53.5 in May from 60.4 in April. A reading of more than 50 indicates the manufacturing industry is growing, but the index had been as high as 61.4 in February. Private employers added just 38,000 jobs in May, down from 177,000 in April, according to payroll processor ADP. Analysts had expected 180,000 new jobs.

The Dow Jones industrial average dropped or 2.2 percent to 12,290.14. The S&P index lost 2.3 percent to 1,314.55. The Nasdaq composite fell 2.3 percent to 2,769.19.
G uNiT UgLy
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August 2 2011 7:45 PM   QuickQuote Quote  
Stocks fall again on economic worries
08/02/2011 7:20 PM

By Todd Wallack

The stock market plummeted again today on growing worries about about the ailing US economy, despite the fact that President Obama signed legislation to raise the debt ceiling and avert a potentially disastrous default on the country's debt.

The Dow Jones industrial average dropped 266 points, or more than 2 percent, the eighth straight day the stock market has slumped and the longest losing streak since the financial crisis in October 2008. Overall, the Dow has dropped 6.7 percent in the past eight days and is at lowest point since March 18, though the market still remains up slightly for the year.

Analysts said the market has beaten down by a wave of bad economic news in the past week, in addition to anxiety about a potential default. The Commerce Department said yesterday that consumer spending dropped 0.2 percent in June, the first decline in nearly two years. And that followed a weak manufacturing report on Monday and a dour study on Friday that showed the economy has been growing even more slowly than previously thought.

In addition, some investors are now beginning to fret that the debt ceiling deal could actually further weaken the economy by cutting government spending before the economy has fully recovered from the recession. As part of the deal, Congress and the White House agreed to cut spending more than $2 trillion.

"The austerity measures are necessary to improve our longterm fiscal health, but in the near term these measures will act as a headwind against growth," said Paul R. Touchstone, senior investment strategist for Stone & Youngberg LLC, a financial services firm in San Francisco. Touchstone said his firm was previously optimistic that the economy would improve in the second half of the year, but plans to revisit that prediction in light of the latest numbers.

The S&P 500 and Nasdaq indices fell by even wider margins yesterday. The S&P 500 slipped 2.75 percent, while Nasdaq dropped 2.56 percent.

And the stock market could be shaken again in coming days if new jobs data comes in weaker than expected. The Department of Labor is slated to issue its monthly unemployment report on Friday, while ADP, a major payroll company, unveils its own estimates for private sector job growth today.
Hail Caesar
3,756 Posts

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August 2 2011 7:57 PM   QuickQuote Quote  
Let's keep pumping billions into the hands of corrupt despots, pointless wars and the prosecution of people possessing marijuana.
afam / aasr 32°
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August 2 2011 9:40 PM   QuickQuote Quote  
Rough day.
G uNiT UgLy
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August 4 2011 2:41 PM   QuickQuote Quote  
and again.

Wall Street Plunges, Loses 1 Year Gains in 1 Day
Thursday, 04 August 2011

The Dow Jones Industrial Average had lost more than 500 points at midday Thursday, erasing gains for the year.

The index has lost more points in the last two weeks than it did after the House initially failed to approve a bailout of U.S. banks at the height of the financial crisis in 2008.

The carnage on Wall Street, which precedes a widely anticipated jobs report due Friday, is likely to increase anxiety at the White House and in Congress on the troubled economy, as both sides have something to lose.

A worsening economy could hurt President Obama’s poll numbers and give hope to a field of GOP candidates running to replace him.

At the same time, an economy that has slowed since Republicans won back the House in the 2010 midterm election will also raise questions about the GOP’s economic stewardship.

The Dow slumped 515.03 points, or 4%, to a low of 11383.92, erasing all its gains for 2011. It more recently was down 344 points, at 11551, a decline of 2.9%. The slump of the past few weeks has driven the Dow down nearly 10% from its May intraday highs--a decline that would be classified as a correction.

The Standard & Poor's 500-stock index fell 38 points, or 3%, to 1223 in recent action. The S&P recently was in correction territory on an intraday basis, having fallen more than 10% since May. The Nasdaq Composite slumped 84 points, or 3.1%, to 2608.

Investors across the globe have been buffeted by economic and political turmoil in recent days.

In the U.S., fears have turned from worries about a possible default by the U.S. government to a weakening economic outlook. A string of data have pointed to a slowing of the recovery and investors and strategists are increasingly worried that the economy may fall into a double-dip recession. In Europe, leaders are struggling to contain a growing debt crisis. Investors are increasingly worried that troubles are spreading to Italy and Spain, driving down stocks across the region and sending borrowing costs of peripheral nations soaring.

All but one Dow stock was lower in U.S. afternoon trading as investors sold across the board. All of the S&P 500 sectors were in the red and just 11 of the 500 stocks were up.

"This is a fear-driven market. We're in a mini-free fall. It's not a Black Monday, or Black Thursday, but it's in pretty bad shape--all the big stocks are being liquidated," said Christian Thwaites, president and CEO at Sentinel Investments.

Gold and silver, which had been up on the day, reversed course as investors sold the metals to meet stock-based margin calls, traders said. If investors have purchased stocks with borrowed money, they often have to front more cash if the price of those shares fall, known as a margin call.

Underscoring that worried investors are increasingly seeking cold cash, the Bank of New York is preparing to charge some large depositors to hold their funds. The biggest U.S. custodial bank said this week in a note to clients that it will begin slapping a fee next week on customers who have vastly increased their deposit balances over the past month.

The bank cited the massive dollar deposits it has received over recent weeks, as investors and corporations retreat from financial markets amid Europe's debt crisis and the recent debate over U.S. government borrowing.

Investors fled to U.S. Treasurys, sending the yield on the 10-year Treasury note, which falls as prices rise, down to 2.481%.

"It's a real 'sell first, ask questions later' kind of day," said Steve Sosnick, equity-risk manager at Timber Hill/Interactive Brokers Group. "People are trying to raise cash where they can."

Fretting about a slowdown, investors were also focused on a pair of policy moves abroad that did little to assuage their immediate worries.
afam / aasr 32°
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August 4 2011 4:05 PM   QuickQuote Quote  
Down 500 right now
billy ray cyrus, MD
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August 4 2011 4:11 PM   QuickQuote Quote  
Originally posted by:billy ray cyrus, MD

good thing all those assholes voted for tea party republicans because they thought they'd be good for the economy. lol
2,946 Posts

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August 4 2011 4:14 PM   QuickQuote Quote  
nobody wins in a stagnant market

I was down forty now i'm up fifty
buck fifty buck quickly
who could fuck wit me
cubic time cube
51,395 Posts

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August 4 2011 5:36 PM   QuickQuote Quote  
Awesome, can't wait to start fearing for my job when they start cutting entire departments again.
ass nipples
old dancing boy
38,945 Posts

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August 4 2011 9:14 PM   QuickQuote Quote  
Originally posted by: hesinparties

I was down forty now i'm up fifty
buck fifty buck quickly
who could fuck wit me

37,493 Posts

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August 5 2011 3:38 AM   QuickQuote Quote  
Originally posted by: asdfjasfjas

The market is not going to "crash". Don't worry that much. The market is at its highest levels adjusted for inflation since the end of the tech boom. Drops in the stock market are good things if you know what you're doing. I can't wait for a decline so I can build up some positions.

if this bush were still president back in the day, it would all his fault. right dwarn? just jokin. your the icon to me for the entire liberal movement....that's not quite accurate, I hope
47,259 Posts

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August 5 2011 3:40 AM   QuickQuote Quote  
Originally posted by: Kadesh

Originally posted by: asdfjasfjas

The market is not going to "crash". Don't worry that much. The market is at its highest levels adjusted for inflation since the end of the tech boom. Drops in the stock market are good things if you know what you're doing. I can't wait for a decline so I can build up some positions.

if this bush were still president back in the day, it would all his fault.

47,259 Posts

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August 5 2011 3:40 AM   QuickQuote Quote  
but who was phone
37,493 Posts

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August 5 2011 3:47 AM   QuickQuote Quote  
mistake... it's still all his fault! boil him in oil!
Brett Weir
im gay
45,323 Posts

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August 5 2011 7:44 AM   QuickQuote Quote  
Thank you john boehner for holding hostage the the country's default with a shit agenda so you could try to use an economic downfall as ammo to say OH LOOK! OBAMA FAILED! fuck the GOP, fuck john boehner, fuck the tea party, and fuck every single person who doesnt vote these cocksuckers out of office.
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