Infinite Unknown

Nov. 20 (Bloomberg) — U.S. stocks slid and the Standard & Poor’s 500 Index plunged to its lowest level in 11 years after economic reports depicted a deepening recession and lawmakers postponed a vote on a plan to salvage the auto industry.

The Standard & Poor’s 500 Index extended its 2008 tumble to 49 percent, poised for the worst annual decline in its 80-year history. Chesapeake Energy Corp. and National-Oilwell Varco Inc. slid more than 21 percent after oil sank to a three-year low as the slumping economy crushes demand. JPMorgan Chase & Co. lost 18 percent and Citigroup Inc. plunged 26 percent as concern the recession will trigger more bankruptcies pushed the cost of insurance against corporate defaults to an all-time high.

“We’re just trying to stay away from the window,” said James Paulsen, who helps oversee about $220 billion as chief investment strategist at Wells Capital Management Inc. in Minneapolis. “This isn’t about fundamentals, it’s not about bad balance sheets, it’s about fear and confidence.”

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Tags: Citigroup, Dow Jones, Economy, financial crisis, JPMorgan, Meltdown, Nasdaq, Recession, S&P 500, Stock Market, U.S., Wall Street

NEW YORK - Wall Street hit levels not seen since 2003 on Wednesday, with the Dow Jones industrial average plunging below the 8,000 mark amid a dour economic outlook from the Federal Reserve and worries over the fate of Detroit’s three automakers.

A cascade of selling occurred in the final minutes of the session as investors yanked money out of the market. For many, the real fear is that the recession might be even more protracted if Capitol Hill is unable to bail out the troubled auto industry.

Investors also scoured economic data that included minutes from the last meeting of the Federal Reserve in which policymakers lowered projections for economic activity this year and next. Economic worries caused across-the-board selling, with financial stocks particularly hard hit.

The S&P 500, widely considered the broadest snapshot of corporate America, slipped 52.54 points, or 6.12 percent, to 806.58; and the Dow gave up 427.47 points, or 5.07 percent, to 7,997.28. Both closed at their lowest levels since March 2003, and are rapidly approaching the lows of the 2000 to 2002 bear market.

The financial crisis has already wiped out $6.69 trillion of value from the S&P 500 since its October 2007 high, and many fear more is to come. Stocks have traded with high volatility in the past few months, with the major indexes soaring only to plunge an hour later as the market searches for a bottom.

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Tags: Dow Jones, Economy, Fed, Federal Reserve, financial crisis, Recession, S&P 500, Stock Market, Wall Street

Dow rises 11% on big rally, but October is still shaping up to be one of the worst months in Wall Street history.

NEW YORK (CNNMoney.com) — The Dow rallied as much as 906 points during Tuesday’s session, as investors dove back into stocks near the end of one of the worst months in Wall Street history.

The Dow Jones industrial average (INDU) added 889 points after having risen as much as 906 points earlier in the session. It was the Dow’s second-biggest one-day point gain ever, following a 936-point rally two weeks ago. The advance of 10.9% was the sixth-biggest ever.

The Standard & Poor’s 500 (SPX) index gained 91.6 points or 10.8%, its second-biggest one-day point gain ever and its fifth-best one-day percentage gain.

The Nasdaq composite (COMP) rose 143.6 points or 9.5%. On a percentage basis, it was the fourth-best one-day gain ever for the tech-fueled Nasdaq. But on a point basis, it didn’t crack the top 10.

The broad advance occurred as the two-day Federal Reserve meeting got underway, with a decision on interest rates expected Wednesday afternoon. Policymakers are widely expected to cut a key short-term interest rate.

Stocks ended Monday’s session at the worst levels in more than five years, with the major gauges down more than 25% for October. Global markets had fallen too, as investors worldwide bailed out of stocks amid the credit crisis and weak economy.

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Tags: Banks, Credit Crisis, credit crunch, Dow Jones, Economy, Fed, Federal Reserve, financial crisis, GDP, Government, Nasdaq, Politics, Recession, Standard & Poor's, Stock Market, Treasury, U.S., Wall Street

A trader at the Philippines stock exchange as business is halted. Photograph: Cheryl Ravelo/Reuters

Stockmarkets around the world crashed again today as the prospect of a deep worldwide recession continued to haunt investors.

Fears that the financial crisis is spreading to emerging nations sparked another day of panicky selling, despite speculation of another round of interest rate cuts to try to stimulate the global economy,

As the current crisis sparked by the failure of Lehman Brothers entered a seventh week, Japan’s Nikkei index fell 6.4% to its lowest level since 1982, extending its recent slump. It has now lost 20% of its value in the last week.

Hong Kong also saw shares routed, with the Hang Seng index plunging almost 12% in late trading - putting it on track for its biggest daily fall since 1997. And the Chinese stockmarket tumbled over 6%, bringing more pain to small investors who have watched the Shanghai Composite index fall 70% from last year’s peak.

With India’s stockmarket losing 8%, shares across Europe are also expected to fall sharply when trading begins. The Dow Jones index is tipped to fall by another 400 points, or 5%, later today.
(The Dow fell only 2,42% today.)

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Tags: China, Dow Jones, Economy, financial crisis, India, Japan, Nikkei, Philippines, Stock Market, U.S., Wall Street

A trader looks up at monitor while working on the floor of the New York Stock Exchange in New York on Oct. 15, 2008. Photographer: Jin Lee/Bloomberg News

Oct. 15 (Bloomberg) — U.S. stocks plunged the most since the crash of 1987, hammered by the biggest drop in retail sales in three years and growing doubt that plans to bail out banks will keep the economic slump from deepening.

Exxon Mobil Corp. and Chevron Corp. tumbled more than 12 percent as commodity prices declined on concern the slowing economy will hurt demand. Wal-Mart Stores Inc. retreated 8 percent after the Commerce Department said purchases at chain stores decreased 1.2 percent last month. Morgan Stanley lost 16 percent after Oppenheimer & Co. analyst Meredith Whitney said the government’s bank rescue is not a “panacea” solution.

The Standard & Poor’s 500 Index sank 90.17 points, or 9 percent, to 907.84, with nine companies declining more than 20 percent. The Dow Jones Industrial Average retreated 733.08, or 7.9 percent, to 8,577.91, its second-biggest point drop ever. The Nasdaq Composite Index lost 150.68, or 8.5 percent, to 1,628.33. About 37 stocks fell for each that rose on the New York Stock Exchange.

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Tags: Banks, Ben Bernanke, Chevron, Coca Cola, Credit Crisis, credit crunch, Dow Jones, Economy, Exxon, Fed, Federal Reserve, financial crisis, JPMorgan, Morgan Stanley, mortgage crisis, Mortgages, NYSE, Recession, Stock Market, U.S., Wall Street

NEW YORK - Stocks plunged in the final hour of trading Thursday, sending the Dow Jones industrial average down 679 points - more than 7 percent - to its lowest level in five years after a major credit ratings agency said it might cut its rating on General Motors Corp.

The Standard & Poor’s 500 index also fell more than 7 percent.

The declines came on the one-year anniversary of the closing highs of the Dow and the S&P. The Dow has lost 5,585 points, or 39.4 percent, since closing at 14,198 on Oct. 9, 2007. The S&P 500, meanwhile, is off 655 points, or 41.9 percent, since recording its high of 1,565.15.

U.S. stock market paper losses totaled $872 billion Thursday and the value of shares overall has tumbled a stunning $8.33 trillion since last year’s high. That’s based on preliminary figures measured by the Dow Jones Wilshire 5000 Composite Index, which tracks 5,000 U.S.-based companies’ stocks and represents almost all stocks traded in America.

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Tags: Bush administration, Dow Jones, Economy, General Motors, GM, NYSE, Standard & Poor's, Stock Market, Treasury, U.S., Wall Street

Ben S. Bernanke, chairman of the U.S. Federal Reserve, speaks on a television above a trader in the S&P pit at the Chicago Board of Trade in Chicago, on Tuesday Oct. 7, 2008. Photographer: Joshua Lott/Bloomberg News

Oct. 7 (Bloomberg) — U.S. stocks fell, sending the Standard & Poor’s 500 Index below 1,000 for the first time since 2003, on speculation banks and real-estate companies are running short of money as the credit crisis worsens.

Bank of America Corp. tumbled 26 percent after cutting its dividend in half and saying it plans to sell $10 billion in common stock to brace for a recession. Morgan Stanley, KeyCorp and JPMorgan Chase & Co. slid more than 10 percent as investors shrugged off signs the Federal Reserve will reduce interest rates. General Growth Properties Inc., a mall owner, plunged 42 percent on concern it won’t be able to repay debt.

The S&P 500 slid 60.66 points, or 5.7 percent, to 996.23, extending its 2008 tumble to 32 percent in the market’s worst yearly slump since 1937. The Dow Jones Industrial Average dropped 508.39, or 5.1 percent, to 9,447.11, giving it a 29 percent retreat in 2008 that would also be the worst in 71 years. The Nasdaq Composite Index lost 5.8 percent to 1,754.88.

“We’ve approached the edge of the cliff,” Leon Cooperman, 65, who manages $6 billion at hedge fund Omega Advisors Inc., said at the Value Investing Congress in New York. “Do we go over the cliff or begin to recede? History says we recede, but there’s no guarantee. This is the most difficult financial environment I’ve lived through.”

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Tags: Bank of America, Ben Bernanke, Dow Jones, Economy, Fed, Federal Reserve, Ford, GM, Goldman Sachs, JPMorgan, Merrill Lynch, Morgan Stanley, Nasdaq, S&P 500, Stock Market, U.S., Wall Street

Credit Crisis Widens

Sam Farhood, left, and James Denaro work on the floor of the New York Stock Exchange prior to the Opening Bell in New York, on Oct. 6, 2008. Photographer: Andrew Harrer/Bloomberg News

Oct. 6 (Bloomberg) — Stocks tumbled around the world, the euro fell the most against the yen since its debut and oil dropped below $90 a barrel as the yearlong credit market seizure caused bank bailouts to spread. Government bonds rallied.

The Standard & Poor’s 500 Index retreated 5.9 percent, extending the worst weekly slump since 2001, as concern slower global growth will curb demand for commodities sent Alcoa Inc. and U.S. Steel Corp. down more than 7 percent. The MSCI Emerging Markets Index headed for its biggest loss in at least two decades and exchanges in Russia and Brazil halted trading. Europe’s Dow Jones Stoxx 600 Index had its steepest decline since 1987.

Today’s plunge erased about $2.5 trillion from global equities after the German government was forced to bail out Hypo Real Estate Holding AG, overshadowing the $700 billion U.S. Treasury plan to revive credit markets. The euro weakened 6 percent against the yen, the most since 1999.

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Tags: bailout, Banks, BNP Paribas, Brazil, Dow Jones, Economy, Fed, Federal Reserve, George Bush, Government, Hypo Real Estate, Lehman Brothers, Politics, Standard & Poor's, Stock Market, Treasury, U.S., UBS, Wall Street

David Tice, manager of the $1.1 billion Prudent Bear Fund, advised viewer of Bloomberg TV to move out equities into safer investments

Posted: September 30, 2008

Source: eyeblast.tv

Tags: bailout, Ben Bernanke, Credit Crisis, Dollar, Dow Jones, Economy, Gold, Inflation, Silver, Stock Market, U.S., Wall Street

Fears that the cost of living in America is rising out of control were heightened today after official data showed that factory gate prices increased at their fastest rate for 27 years.

US producer prices — a measure of the price of goods as they leave the manufacturer — rose 1.2 per cent in July compared with the month before. The increase represented a 9.8 per cent jump from July last year.

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Tags: Dow Jones, Economy, Fed, Federal Reserve, Food, Inflation, Labor Department, Recession, Stagflation, U.S., Wall Street