Results tagged “stockmarket”

The three major stock indices each fell over 2.5% today, erasing gains the Dow made over the month and leaving the S&P 500 and Nasdaq to fall 2% and 3.6% respectively for the month. The NY Times reports, "The drops were led by stocks in banks and financial firms, which investors abandoned in light of a Commerce Department report that showed consumers were still in distress. Consumer spending in September dropped by the largest amount in nine months, the report said, a dreary data point that met Wall Street expectations but reinforced the slow, halting recovery of the United States economy."

Bloomberg News says that Americans are hoarding $3.5 trillion in cash, "giving money managers increasing confidence that the stock market rally under President Barack Obama will continue through the end of the year." One investor said, "There’s an enormous stockpile of liquidity on the sidelines. The reinvestment of cash could help fuel the market." And there's even smack-talking about some cautious investors, with one sniffing, "Many of the fund managers I talk to that have missed this rally or underplayed this rally are sitting with way too much cash."

It's a hump day surprise! U.S. stocks are climbing based on better-than-expected data on home sales and durable goods. New home sales grew by 4.7% in February, thanks to low prices and mortgage rates; however home prices dropped 18%, between Feb. 2008 and Feb. 2009. A Credit Suisse economist said, "It’s a step in the right direction," but noted, "We still have a lot of supply to absorb before things get back to normal." And orders for durable goods rose 3.4%, the first uptick in seven months. Right now, the market is up about 2%.

Stocks closed up today, capping the U.S. markets' best week since November. CNBC reports, "The Dow Jones Industrial Average gained 53.92, or 0.8 percent, to close at 7,223.98. That brought its four-day total to nearly 700 points, or more than 10 percent. All 30 Dow stocks finished the week positive. Even with Monday's decline, the S&P 500 and Nasdaq each gained more than 10 percent this week." Of course, this comes as economists still expect the GDP to "decline at an annual rate of 4.6% this quarter and 1.5% in the second quarter" and China, which has $1 trillion of U.S. debt, is worried about U.S. Treasuries.

After a memo from Citigroup CEO Vikram Pandit saying that the company was profitable in 2009 (thus far), the bank's stock is up 27% to...$1.34! But that news is enough to help other bank stocks rally and the Dow is up by about 250 points. Pandit said of Citigroup, which did receive $45 billion in TARP bailout money, "We are profitable through the first two months of 2009 and are having our best quarter-to-date performance since the third quarter of 2007." But he did add he was disappointed in the company's low stock price. Additionally, the Wall Street Journal reports, "U.S. officials are examining what fresh steps they might need to take to stabilize the [Citigroup] if its problems mount."

Also: Tomorrow's economic data could trigger a big sell-off.

Yesterday, as the stock markets faltered further, President Obama told the American public that now might just be the time to go in, "Buying stocks is a potentially good deal if you've got a long-term perspective on it," as he said his policies wouldn't be determined by "day-to-day gyrations of the stock market." The Daily News spoke to some New Yorkers to ask them what they thought of the President's suggestion: One woman said, "I'm not buying any stocks now. [My investments] are sitting in cash. I don't think we hit bottom yet," while another man was also wary, "I lost a lot of my retirement in the stock market." However, one person was bullish, "There are good stocks out there. There are fundamentally sound companies," but then he admitted, "I'm a financial adviser, so it means more business for me."

There may be a snow storm outside, but that doesn't mean Wall Street can avoid the bad news: Stock futures are falling on news of the additional $30 billion AIG secured from the federal government. Stocks fell in Asian and have dropped in Europe—and Warren Buffett's words that the U.S. economy is in shambles ain't helping either. A London portfolio manager told Bloomberg News, "Things are getting worse. The economy is still deteriorating and bad debts are still going to appear." The Dow is expected to drop under 7,000 points today, though it's unclear where it'll end up.

Yesterday, global markets fell as worries about Eastern European banks "led to a huge sell-off on Tuesday that began overseas and crashed ashore on Wall Street," according to the NY Times. The Dow fell almost 300 points, about 3.8%, while the Nasdaq lost 4.2% and the S&P 500 lost 4.6%, dropping under 800 points. Stock futures are rising this morning, and Bloomberg News suggests that may be partly due to President Obama's announcement about plans to stem home foreclosures. An fund manager said, "The market is very news sensitive and wants to hear concrete plans, it looks like Obama understood that now and will give more details. We may see a relief rally after markets haven fallen below the floor.” There is some bad news: Housing starts were at a record low last month and former Fed Chairman Alan Greenspan says there needs to be more TARP funding.

The Dow lost almost 3% (dropping almost 250 points) and the Nasdaq and S&P 500 both lost more than 3% today, as, CNBC reports, "volatility and uncertainty remained" with worries over "earnings, retail reports, questions surrounding the status of Treasury Secretary nominee Timothy Geithner's former housekeeper and the incoming Obama administration." So everything! Oh, and there are concerns over Citigroup, whose stock fell 23% to $4.53 and bad news from other banks, too. Retail sales fell 2.7%, double what analysts thought. Now there's news that Apple CEO Steve Jobs is taking a leave of absence due to health issues.

The Asian stock markets fell sharply today, with Tokyo's Nikkei falling 3.4% and Hong Kong's Hang Seng falling 3.6%. According to the AP, worries stemmed from companies' profit news as well as U.S. labor concerns. The U.S. markets fell considerably yesterday (the Dow Jones fell 245 points/2.71%), and one strategist in Hong Kong said, "The economic reality is sinking in for investors and 'the hope rally' that many thought would last until Obama's inauguration seems to be at least fizzling for now." Markets in Europe have also dropped, and now, behemoth retailer Wal-Mart warned that it had disappointing holiday sales and cut its profit forecast. As for labor reports, weekly jobless claims were lower than estimates by 24,000 but, Reuters reports, "the number of people remaining on jobless rolls rose to a fresh 26-year high"—it's now 4.611 million.

The Dow Jones broke 9,000 points for the first time since November when trading closed: Not only did the Dow end up at 9,034 (up 258 points/almost 3%), the Nasdaq rose 3.5% and the S&P 500 was 3.16% higher. This, even in spite of poor manufacturing news—manufacturing levels are at the lowest since 1980. It's a new year, and analysts think stocks could gain up to 20% in 2009 (the Dow fell 34% last year), but, as Clusterstock notes, "The real newsflow will begin in earnest next week, and we'll get a picture of how bad December really was in the economy."

The Dow Jones went over 9,000 but ended the day at 8,930 points, gaining almost 300 points (+3.46%). The Nasdaq rose over 4% and S&P 500 ended 3.84% up, as investors were hopeful about the government bailing out automakers to the tune of $15 billion. The White House has reportedly received a draft of a bill from Congress, and the Senate Majority Leader Harry Reid said passage would be possible if "senators are willing to work together in the next few days." The bill would help the Big Three automakers stay in business for a few months; Rep. Barney Frank said $15 billion was not enough but "It's better than nothing."

After five days of gains, the stock market is looking at a lower open today. CNBC reports, "The major indexes indicated drops approaching 2 percent." Joseph Poon, head of Mcquarie Private Wealth Asia, referred to data from the retail industry, "The market is really spooked I'm afraid. We just have to see some stability… the US consumer is usually the guy that's going to pull us back." While sales were up on Black Friday, both in person and online, there were deep discounts that cut into profitability. The National Retail Federation said, "We take all of this into context and realize Black Friday is not going to save the holiday season. Regardless of retail sales, retail profits are another matter. Everything they sold was at a razor-thin margin." And today happens to be Cyber Monday, the unofficial start of the online holiday shopping season.

With prospects of an auto-industry bailout fading, the Dow Jones fell 5% today, dropping 427 points to close at 7997. CNBC says the "last time the Dow ended below 8,000 was March 2003." The S&P 500 fell 6% and the Nasdaq lost 6.5%. One investment strategist at PNC Wealth Management said to Bloomberg News, "Hideous day. It's hard to put a basement on this thing."

There will probably be more sad guys on trading floors today: Stock futures are showing sharp declines, in part due to news that Citigroup may eliminate 50,000 people (or 14%) of its global workforce, mostly by selling assets. And Britain's Sunday Telegraph reports that JPMorgan Chase will have cut thousands of jobs next year. In the auto industry, which hopes for some government help, cash-strapped GM is selling back a 3% stake in Suzuki to raise $232 million. Referring the futures and prospects for today, City Index's chief market strategist told CNBC, "This baby is going down and it's going down fast. I see no reason for anyone picking up the baton this morning."

The Dow, Nasdaq and S&P 500 are off about 3% right now, as worries about the global economy continue to linger--in spite of what CNBC calls "the positive effect of China's stimulus package." Hey, the chances of a depression in 2009 are 15%, so the glass is 85% full, right? The bond market is closed today, for Veterans Day, but there's still lots of news: Developer Toll Brothers reported a 41% drop in third quarter revenue and Citigroup announced it would rework thousands of mortgages, focusing on areas "likely to face extreme economic distress," and may help homeowners stay current with payments.

The Dow and the S&P 500 both closed down about 5% today in a day of heavy losses. The Dow was down 443 points and closed below 9,000 amidst fears of a prolonged recession that even superhero President-elect Obama may be not be able to turn around. "Everything is so dismal right now, it's just an endless flow of bad news and no one wants to buy," despaired equity trader Dave Rovelli, who could really benefit by reading today's heartwarming good news about the Starbucks wedding proposal! CNN reports that investors are fearful about tomorrow's big monthly jobs report. Also, too, October retail sales from the chain stores were mostly "abysmal," the housing market is still collapsing, and even the recent dip in gas prices has not improved consumer spending. "People are realizing that the recession is going to drag on until at least the end of 2009," Rovelli whines. LA LA LA LA Can't hear you, Rovelli! Starbucks wedding proposal! Doggie costumes! Sasha and Malia get a puppy!

The Dow Jones fell 5.1% yesterday as worries about the economy returned with data about service sector-activity falling more than expected and jobs losses increasing more than expected. Futures are looking down again today, and that's in spite of the Bank of England slashed its key lending rate from 4.5% to 3%--its lowest since 1955. In fact, the BoE's rate cut was so unexpected that none of 60 economists surveyed by Bloomberg News predicted it (one said, It's absolutely staggering and deeply impressive"). Earnings data is driving the concern--Toyota forecast its "biggest drop in profit in at least 18 years" and Cisco predicts its "first revenue decline in" 5 years.

According to CNBC, "stock index futures moved cautiously higher Monday, after ending the crazy month of October on a high note." It's expected to be relatively quiet today; Brewer Investment Group principal Jack Bouroudjian said, "Right now that money is sitting on the sidelines waiting to see what happens tomorrow"--tomorrow being the election--and "relief rally" is expected then, even though we won't know who the president is. Overseas, the European Commission said the region is probably in a recession and their economy "will stagnate in 2009."

To no one's surprise, consumer spending was down last month, but this was the first time spending has gone down in two years. The Commerce Department says purchases decreased by 0.3%; Bloomberg News says it caps "the weakest quarter in three decades and indicating the economic slump is deepening." Yeterday, GDP data revealed the economy contracted by 0.3%, which many private-sector economists believe means the U.S. "has already entered a recession." Stocks, which were up yesterday (the Dow rose 200 points), look to open lower today.

Global markets fell as worries about the recession continued: Tokyo's Nikkei fell more than 9%, closing under 8,000 for the first time since April 2003 and European markets fell after the official news that the "British economy shrank more than expected and for the first time in 16 years." The Dow Jones and S&P 500 futures trading were "limited to prevent contracts from further declines after drops of more than 6 percent." Both will open for trading later, though.

The Dow Jones ended the day with a 400+ rally, closing at 9,265 points. The Nasdaq was up 3.43% and the S&P 500 was up 4.77%. Earlier today, Fed Chairman Ben Bernanke said the country should think about another stimulus package, "With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture is appropriate." But investors are hopeful, now, too: Dawson Wealth Management's Joe Heider told CNBC, "I think one of the most encouraging signs, is is a loosening up of the credit market. We're actually recommending to our clients that now is a good time to go back into the equity markets in a broad, diversified fashion."

After falling in the morning, to Dow Jones closed up 401 points, a 4.68% increase after swinging in a 700-point range. Nasdaq and S&P 500 also rose, 5.49% and 4.25% respectively. Stephens Capital Management managing director Warren Simpson told Reuters, "I think this is bargain hunting and there are some bargains out there. Some of these stocks are at historic lows." Overall, investors are on their toes--Institutional Advisors strategist said to the Wall Street Journal, "The question of whether or not there is going to be a recession is moot at this point. It's just a matter of saving yourself some pain in your portfolio of stocks, bonds and everything else."

Update 11:30 a.m.: Stocks have fallen after a "feeble rally"--right now, the Dow is down 245 points (2.9%) and the Nasdaq is down 2.28% and S&P 500 is down over 3%. An ING investment strategist tells the NY Times, "The realization is dawning on people that we are heading into a recession, and it may not be the short and shallow recession that we had hoped for. The focus has shifted from the financial crisis to the real economy, but the news is not good there either.”

Continuing the chain reaction of global markets falling--due to worries about the banking and credit crisis--the Dow Jones Industrial Average has fallen below 10,000 for the first time in four years. The NY Times reports " The index has lost more than 1,100 points — or about 10 percent — in slightly more than a week." The S&P 500 is currently down alost 5% and the Nasdaq is down over 5% (check here).

The Dow dropped 348 points (3.22%) and the Nasdaq and S&P 500 both dropped over 4% today as jobless claims rose to their highest level since September 2001, GE fell 10% after selling $12 billion of stock and investor waited for the House to pass the bailout package. Stifel Nicholas Capital Markets managing director Tom Schrader told CNBC, "I think economic worries are starting to settle in. Wall Street is starting to worry that the more credit dries up the longer it's going to take to reverse the negative consequences of what we've already seen." In other news, Bank of America is suing Lehman Brothers for $500 million!

The stock market fell over 161 points today, as the market waited for the government to make a decision about the $700 billion bailout plan. Treasury Secretary Henry Paulson and Federal Reserve chairman Ben Bernanke both testified before the Senate Banking Committee; the NY Times reported, "While senators agreed that they needed to act quickly, they also said they wanted to take a close look at the legislation." Which made investors anxious: BPU Investment Management managing director of investments Nadav Baum told CNBC, "I think everybody thought [the bailout] was a done deal. And all of a sudden Congress and everybody is talking about it for two days. Markets hate uncertainty — especially now."

The government took more steps to, hopefully, prevent more financial chaos in the financial markets. The NY Times characterizes the moves as "what could become the biggest bailout in United States history":

While details remain to be worked out, the plan is likely to authorize the government to buy distressed mortgages at deep discounts from banks and other institutions. The proposal could result in the most direct commitment of taxpayer funds so far in the financial crisis that Fed and Treasury officials say is the worst they have ever seen.