Tag Archives: Dow Jones

Dow Drops over 700


September retail sales are grim, and a report on manufacturing in the New York area shows a sharp contraction. Crude oil falls below $75. JPMorgan surprises the Street with a profit. Intel reports a profit jump but cautions that demand will be weak.

By Charley Blaine and Elizabeth Strott

The Dow Jones industrials fell below 9,000 again today as stocks were slammed by disappointing reports on retail sales and manufacturing.

The gloom on Wall Street deepened this afternoon when the Federal Reserve’s Beige Book report, an anecdotal look at the economy, painted a picture of weakening business, with almost all sectors falling back except agriculture.

The economic worries weighed as well on crude oil, which fell below $75 a barrel for the first time since August 2007. Energy stocks slumped in response.

At 3:45 p.m. ET, the Dow was down 607 points, or 6.5%, to 8,704. The Standard & Poor’s 500 Index tumbled 77 points, or 7.7%, to 921, and the Nasdaq Composite Index dropped 126 points, or 7.1%, to 1,653.

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Global sell-off panic hits US


U.S. stocks plummeted this morning, for the eighth day in a row of ugly losses.

At 9:38 a.m. ET, the Dow Jones Industrial Average plunged 673 points to 7,905 after plunging 679 points on Thursday. The Nasdaq Composite Index tanked 75 points to 1,570, and the Standard & Poor’s 500 Index was down 45 points to 865.

The bloodbath came exactly one year to the day from the record closing highs for both the Dow and the S&P 500. The Dow is down 5,585 points, or 39%, from its all-time closing high of 14,198 and the S&P down 655 points, or 42%, from its peak of 1,565.

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Black Friday: markets suffer biggest loss in 21 years bracing for worse, and cry for help


 

Black Friday Stock Market Collapse

Black Friday Stock Market Collapse

If ever there was a setup for a Black Friday on Wall Street, this is it.

 

We can hope it doesn’t happen. But better that investors are realistic about the risks. Global markets and the world economy are at a dangerous point in this debt-fueled debacle, and anyone who says otherwise is a liar.

On Thursday the U.S. stock market suffered its seventh straight loss, and the 7.3% drop in the Dow Jones industrial average — down 678.91 points to a five-year low of 8,579.19 — was the biggest yet in this latest sell-off.

In other words, the get-me-out-at-any-price mentality is more intense than even a few days ago. Many people are morose, demoralized, desperate. They can’t take any more.

 

“Investors are in survival mode,” said Robert Bissell, chief investment officer at Wells Capital Management in Los Angeles. “Stocks of major companies are at ridiculous prices,” he said, but no one cares. “This is what panics are all about.”

Much of the selling now is forced: Hedge fund managers may not want to let stocks go at these prices, but their clients want their money back. Ditto for mutual fund managers, who are facing a surge in redemptions. Selling begets more selling.

 

Dow Jones – The Crash of 2008


The Crash of 2008 crushes stocks in a wild last hour of trading. The Dow’s loss tops 7%; the S&P 500 drops 7.6%. Investors flee markets, skeptical that fixes to the credit crisis will work. General Motors shares collapse on fears it won’t survive.

A key event appeared to be news that General Motors (GM, news, msgs) was facing a new downgrade by Standard & Poor’s. The stock was at $4.76, down 31%.

“There’s no safe place to hide,” Jon Najarian of OptionMonster.com, told CNBC.

The selling actually caused oil prices to fall in after-hours trading. Crude was at $84.78 at 3:20 p.m. Crude had closed at $86.59 in regular trading, down 2.7% on the day. Some analysts believe crude will fall under $80 soon. The Organization of Petroleum Exporting Countries is concerned enough that it has called a Nov. 18 meeting, possibly to cut production to boost production.

The sell-off came after news that Treasury Secretary Hank Paulson will reportedly use his new authorities to buy direct stakes in U.S. banks to help restore confidence in the markets. Investors, however, didn’t seem convinced.

Investors want immediate gratification from the measures the Federal Reserve and Treasury have taken to stop the bleeding in the financial crisis, but several traders are urging patience, saying that it will take time for results to work their way into the financial markets and actually boost confidence.

Short-selling will be allowed once again today after a temporary ban by the Securities and Exchange Commission expired at midnight.

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At one point the TSX falls below 10,000


The S&P/TSX composite index has fallen below the psychologically significant 10,000 point mark for the first time in more than three years. The last time Canada’s benchmark index closed below 10,000 was on July 4, 2005.

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Lehman Files for Biggest Bankruptcy in American History, rumors of warnings with AIG and Citibank and the coming market meltdown


Sept. 15 (Bloomberg) — Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, succumbed to the subprime mortgage crisis it helped create in the biggest bankruptcy filing in history.

The 158-year-old firm, which survived railroad bankruptcies of the 1800s, the Great Depression in the 1930s and the collapse of Long-Term Capital Management a decade ago, filed a Chapter 11 petition with U.S. Bankruptcy Court in Manhattan today. The collapse of Lehman, which listed more than $613 billion of debt, dwarfs WorldCom Inc.’s insolvency in 2002 and Drexel Burnham Lambert’s failure in 1990.

Lehman was forced into bankruptcy after Barclays Plc and Bank of America Corp. abandoned takeover talks yesterday and the company lost 94 percent of its market value this year. Chief Executive Officer Richard Fuld, who turned the New York-based firm into the biggest underwriter of mortgage-backed securities at the top of the U.S. real estate market, joins his counterparts at Bear Stearns Cos., Merrill Lynch & Co. and more than 10 banks that couldn’t survive this year’s credit crunch.

“There is likely to be a domino effect as other firms and individuals who relied on Lehman for financing feel the effects of its meltdown,” said Charles “Chuck” Tatelbaum, a bankruptcy lawyer with Lauderdale, Florida-based Adorno & Yoss and former editor of the American Bankruptcy Institute Journal. “The whole thing is frankly frightening for the U.S. economy.”
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