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Dow Drops Massive 315 Points


Business  (tags: $103 Oil, Aig, Dell, Inflation, Oil Prices, Stock Indexes, Stocks, U.S. Economy, Wall Street, Breaking Business News )

Blue
- 2622 days ago - huffingtonpost.com
"Every time we get to a point where we think we've finished, another report comes out and says we're not done yet," he said. Schultz expects Wall Street will continue to proceed with "fits and starts" until investors sense that the bad debt from...



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Blue Bunting (855)
Friday February 29, 2008, 8:25 pm
NEW YORK Stocks fell sharply Friday after a series of depressing economic and corporate reports as well as high oil prices stoked concerns about the health of the economy. The major stock indexes fell more than 2.5 percent and the Dow Jones industrials lost 315 points.

Investors were unnerved by disappointing quarterly results from American International Group Inc. and Dell Inc. And an index of regional business activity that Wall Street regards as a good indicator of a broader report due next week had its weakest showing in more than six years.

Oil prices continued to stir concern about inflation after pushing past $103 per barrel for the first time.

While stocks made sharp gains in the first three days this week even amid somewhat lackluster economic readings, the litany of concerns investors succumbed to Friday reflected the undercurrent of uncertainty that has kept Wall Street on edge for months.

"We really had to face a plethora of negative news," said Art Hogan, chief market strategist at Jefferies & Co. in Boston. "We just ran out of gas this week."

Hogan said while stocks held up admirably early in the week amid an uneven flow of economic news, they couldn't hold their gains after the latest round of weak economic signals.

The Dow fell 315.79, or 2.51 percent, to 12,266.39.

Broader stock indicators also tumbled. The Standard & Poor's 500 index lost 37.05, or 2.71 percent, to 1,330.63, and the Nasdaq composite index declined 60.09, or 2.58 percent, to 2,271.48.

For the week, the Dow lost 0.93 percent, while the S&P 500 gave up 1.66 percent and the Nasdaq fell 1.38 percent. The week's losses would have been steeper had stocks not risen early in the week on hopes many of Wall Street's credit troubles were easing and after IBM Corp. announced a sizable stock repurchase plan.

Friday's losses sent stocks lower for February, the fourth straight month of declines.

Bond prices rose sharply as stocks lost ground. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.53 percent in late trading from 3.67 percent late Thursday.

The Chicago Board Options Exchange's volatility index, known as the VIX, and often referred to as the "fear index," jumped 12.8 percent.

The dollar hit another low against the euro and slid to a three-year record against the yen. The fall in the dollar has sent prices of commodities such as oil and gold soaring.

Light, sweet crude jumped to a record of $103.05 in early electronic trading before settling down 75 cents at $101.84 a barrel on New York Mercantile Exchange.

Insurer AIG announced a $5.29 billion quarterly loss largely because of steep declines in the value of a portfolio of contracts known as credit default swaps. Such contracts pledge to cover missed payments on debt. The company's losses caught analysts off guard, as many had expected the company to turn a profit.

While each of the 30 stocks that comprise the Dow industrials showed declines, those of AIG were the steepest. The stock fell $3.29, or 6.6 percent, to $46.86.

Computer maker Dell posted a 6 percent decline in its quarterly profit, falling below analysts' expectations, and warned that its business could suffer from reduced customer spending. Dell slid 97 cents, or 4.7 percent, to $19.90.

Bill Schultz, chief investment officer at McQueen, Ball & Associates in Bethlehem, Pa., said AIG's report left investors uneasy about the prospect of further sizable write-downs of bad debt.

"Every time we get to a point where we think we've finished, another report comes out and says we're not done yet," he said.

Schultz expects Wall Street will continue to proceed with "fits and starts" until investors sense that the bad debt from faltering mortgages has been accounted for and that balance sheets are on the mend.

Some relief for the ailing bond insurance industry is on the way, though the news didn't dislodge Wall Street's glum mood Friday. Billionaire investor Wilbur Ross agreed to invest up to $1 billion in Bermuda-based reinsurer Assured Guaranty Ltd. Assured Guaranty rose $2.87, or 12.6 percent, to $25.65.

In economic news, the Chicago purchasing managers index for February came in at 44.5, a weaker reading than the 48.5 that had been expected, according to Dow Jones Newswires. The report painted a dreary picture of the manufacturing sector and is seen as a precursor to the national Institute for Supply Management report expected Monday.

A government report showed that personal spending, when stripping out the effects of inflation, stood unchanged in January. The findings brought further worries that consumers are more hesitant to reach into their wallets amid the uncertainties facing the economy.

A parade of economic worries has weighed on consumer as well. The Reuters-University of Michigan final consumer sentiment reading for February came in at 70.8, better than the figure of 69 that had been expected. Still, the index was well off the level of 78.4 seen in January.

Declining issues outnumbered advancers by roughly 7 to 1 on the New York Stock Exchange, where consolidated volume came to 4.23 billion shares compared with 3.76 billion shares traded Thursday.

The Russell 2000 index of smaller companies fell 19.54, or 2.77 percent, to 686.18.

Overseas, Japan's Nikkei stock average closed down 2.32 percent. Britain's FTSE 100 lost 1.36 percent, Germany's DAX index fell 1.67 percent, and France's CAC-40 gave up 1.53 percent.

________

The Dow Jones industrial average ended the week down 114.63, or 0.93 percent, at 12,266.39. The Standard & Poor's 500 index finished down 22.48, or 1.66 percent, at 1,330.63. The Nasdaq composite index ended the week down 31.87, or 1.38 percent, at 2,271.48.

The Russell 2000 index finished the week down 9.25, or 1.33 percent, at 686.18.

The Dow Jones Wilshire 5000 Composite Index _ a free-float weighted index that measures 5,000 U.S. based companies _ ended Friday at 13,455.96, down 207.07 points, or 1.52 percent, for the week. A year ago, the index was at 14,271.61.
 

Blue Bunting (855)
Friday February 29, 2008, 8:32 pm
With the dollar approaching 50cents in value, that $12 billion squandered every month in the phony war for greed is only worth $6 billion squandered, , or has it doubled to $24 billion. I'll just have to call the White House to get the answer to this and some indication as to where the price of a gallon of gas is going. Bush /Bernanke will know the how much a 50 cent dollar will by for the continuance of the phony war
 

Blue Bunting (855)
Friday February 29, 2008, 8:44 pm
"Nobel laureate economist Joseph Stiglitz told London's Chatham House today that the Iraq war has so far cost the United States $3.3 trillion, and that those costs are the "hidden cause of the current credit crunch" and housing crisis. Stiglitz added that "[t]he money being spent on the war each week would be enough to wipe out illiteracy around the world" and "[j]ust a few days' funding would be enough to provide health insurance for US children who were not covered."
 

Thomas Panto (364)
Saturday March 1, 2008, 6:29 pm

The OWNERS of America want you to FEEL your DEPENDANCY.
They take YOUR money out of THIER Stock Market.
 

Good H. (3822)
Thursday August 4, 2011, 5:36 pm
Now down 500 points at close today. MSNBC showed one sign saying: "Happy Birthday Mr. President."
 

Good H. (3822)
Thursday August 4, 2011, 5:49 pm
Why would the stock market go up, after the super rich refused to share the load AT ALL? They stole basically the whole store, all the fixtures, assets and good will. They and their ilk got away with tactics that usually only terrorists use.... threatening Armageddon unless they got what they wanted..The result? No tax increase on wealthy or corporations, no cuts in corporate welfare, and 0 sharing of the load that they helped create, with TARP, 2 wars, etc...

We will be lucky if the whole financial system does not collapse soon, just due to excessive greed, corruption and absolute monopoly control of all of the levers of power, by the 1% super rich and 2% corporations. Power corrupts; absolute power corrupts absolutely. Absolute power is the primary cause of absolutely spectacular collapses, absolutely. Spiritually, it cannot be allowed to exist for very long, because it hurts too many people.

This is the first and only financial crisis, where taxes were not raised on ANYONE, and no corporate welfare was cut.. In EVERY SINGLE previous financial crisis, even under Republican Presidents and control of Congress, the load was shared by the rich and corporations.. Everyone pitched in.. The top tax rate at one point was over 90%, and corporations/rich people did not leave the country.

After all, if you make a profit of a BILLION dollars and get taxed 90% of it, you still end up making 100 MILLION. Who needs a BILLION dollars?

They think they won the battle, and maybe they did.. But now the question comes up... will they lose the war because they forced THEIR selfish will on the whole globe?
 
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