Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Dow industrials plunge more than 500
Yahoo News. ^

Posted on 02/27/2007 12:03:41 PM PST by cgk

Edited on 02/27/2007 3:25:19 PM PST by Admin Moderator. [history]

The Dow Jones industrial average is down more than 500 points with about an hour of trading left today. The Nasdaq Composite is off more than 100.

A 9 percent slide in Chinese stocks, which came a day after investors sent Shanghai's benchmark index to a record high close, set the tone for U.S. trading.

Investors' confidence was knocked down further by data showing that the economy may be decelerating more than anticipated. A Commerce Department report that orders for durable goods in January dropped by the largest amount in three months exacerbated jitters about the direction of the U.S. economy, which were raised a day earlier when former Federal Reserve Chairman Alan Greenspan said the United States may be headed for a recession.

"It looks more and more like the economy is a slow growth economy," said Michael Strauss, chief economist at Commonfund. "Moderate economic growth is good — an abrupt stop in economic growth scares people."

The market had been expecting the government on Wednesday to revise its estimate of fourth-quarter GDP growth down to an annual rate of about 2.3 percent from an initial forecast of 3.5 percent, and grew increasingly nervous on Tuesday that the figure could come in even lower.

The housing market, which the Street had been hoping had bottomed out, also looked far from recovery after a Standard & Poor's index indicated that single-family home prices across the nation were flat in December. A later report from the National Association of Realtors said existing home sales climbed in January by the largest amount in two years, but the data didn't erase housing-related concerns, as median home prices fell for a sixth straight month.

A suicide bomber attack on the main U.S. military base in Afghanistan where Vice President Dick Cheney was visiting also rattled the market.

China's stock market plummeted Tuesday from record highs as investors took profits when concerns arose that the Chinese government may try to temper its ballooning economy by raising interest rates again or reducing more of the money available for lending.

"Corrections usually happen because of a catalyst, and this may be it," said Ed Peters, chief investment officer at PanAgora Asset Management. "The move in China was a surprise, and when a major market has a shock it ripples through the rest of the market. With all the trade that goes on with China, there tends to be a knee-jerk reaction with that kind of drop."

The Shanghai Composite Index tumbled 8.8 percent to close at 2,771.79, its biggest decline since it fell 8.9 percent on Feb. 18, 1997. Since Chinese share prices doubled last year as investors poured money into the market after the completion of shareholding reforms, trading in Shanghai has been very volatile.

Hong Kong's benchmark Hang Seng Index dropped 1.8 percent, and Malaysia's Kuala Lumpur Composite Index fell 2.8 percent. Japan's Nikkei stock average fell a more moderate 0.52 percent, but European markets were rattled — Britain's FTSE 100 lost 2.31 percent, Germany's DAX index dropped 2.96 percent, and France's CAC-40 fell 3.02 percent.

Bond prices rose as investors bought into the safe-haven Treasury market, pushing the yield on the benchmark 10-year Treasury note down to 4.55 percent, its lowest level so far this year, from 4.63 percent late Monday. The bond buying was sparked primarily by the durable goods orders, which the Commerce Department said fell 7.8 percent, much more than what the market expected.

The durable goods drop raised the chance of the Federal Reserve easing interest rates later in the year — a possibility that makes the bond market an attractive place to be right now.

The hope for slowing inflation could be dashed, though, if energy costs keep rising. Oil prices initially fell Tuesday on worries that Chinese demand could be dampened should its economy slow down, but later rose on escalating tensions in the Middle East. Crude rose 4 cents to $61.43 a barrel on the New York Mercantile Exchange.

The dollar slipped against other major currencies, while gold also fell.

The Dow has been climbing at a steady rate since last summer, but over the past few trading sessions, stocks have pulled back on the worry that the market is due for a correction. Many analysts have noted that the Dow hasn't seen a 2 percent decline in more than 120 sessions.

Data indicating a slower economy had recently been giving stocks a boost on the hopes that the Fed will lower interest rates, which could reinvigorate consumer spending and the struggling housing market. But the market may fall further before that happens, analysts said.

"If in a week or two, the psychology in the U.S. market turns to the realization that we're in a modest growth economy of 2 to 3 percent growth, that will help temper inflation pressures going forward. If that perception evolves, there's an increase in the likelihood that the Fed will be lowering rates rather than raising rates. Structurally, it's a development that should be good for the equity market, but it might be an event that unfolds after prices are lower," Strauss said.

Declining issues outnumbered advancers by about 7 to 1 on the New York Stock Exchange, where volume came to 1.39 billion shares.

No sector was left unscathed by Tuesday's sell-off, and all of the 30 Dow components were lower in early afternoon trading.

NYSE-listed shares of Chinese companies plunged. China Mobile Ltd. tumbled $3.39, or 6.9 percent, to $45.89. Mindray Medical International Ltd. dropped $3.69, or 12.85 percent, to $25.02. China Eastern Airlines Corp. fell $4.435, or 13.14 percent, to $29.315.

On the Nasdaq, Internet company Baidu.com Inc. fell $4.44, or 4 percent, to $107.27. Shanda Interactive Entertainment Ltd., which develops online games, fell $1.42, or 5.7 percent, to $23.50.

___

On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com


TOPICS: Breaking News; News/Current Events
KEYWORDS: buyspamrightaway; doomed; doomedisay; dowjones; endoftheworld; skyisfalling; weredoomed
Navigation: use the links below to view more comments.
first 1-5051-100101-150151-200 ... 451-455 next last

1 posted on 02/27/2007 12:03:47 PM PST by cgk
[ Post Reply | Private Reply | View Replies]

To: cgk

Should we call the crash dummy protection unit?


2 posted on 02/27/2007 12:04:39 PM PST by taxed2death (A few billion here, a few trillion there...we're all friends right?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

Wow, I cashed in a bit yesterday to do some home repairs.

Sorry all :)


3 posted on 02/27/2007 12:05:08 PM PST by Bahbah (.Regev, Goldwasser & Shalit, we are praying for you.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

There goes the farm. I have to call my finance guy!

SELL! SELL! SELL! SELL!

OH GAWD! HELP US!....................


4 posted on 02/27/2007 12:05:16 PM PST by Tenacious 1 (No to nitwit jesters with a predisposition of self importance and unqualified political opinions!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

Dow down 500 points at 12:04 pm.


5 posted on 02/27/2007 12:05:20 PM PST by gpapa (Boost FR Traffic! Make FR your home page!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: taxed2death

Down 516 points as I type.


6 posted on 02/27/2007 12:05:27 PM PST by tsmith130
[ Post Reply | Private Reply | To 2 | View Replies]

To: taxed2death

According to Shep this is history in the making, and the biggest single drop since right after 9/11... this apparently all started in the Chinese markets this morning.


7 posted on 02/27/2007 12:05:52 PM PST by cgk
[ Post Reply | Private Reply | To 2 | View Replies]

To: cgk

Price of oil will skyrocket, though, right?


8 posted on 02/27/2007 12:05:56 PM PST by mysterio
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

what was the impetus?


9 posted on 02/27/2007 12:06:03 PM PST by theDentist (Qwerty ergo typo : I type, therefore I misspelll.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

It's Black Tuesday!

Oh... The humanity!


10 posted on 02/27/2007 12:06:33 PM PST by Poser (Willing to fight for oil)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

Interesting.

Good thing I don't have crap in my 401k as it is...


11 posted on 02/27/2007 12:06:55 PM PST by RockinRight (When Chuck Norris goes to bed at night, he checks under the bed for Jack Bauer.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: mysterio
I think the world markets are anticipating a US strike on Iran soon, and the temporary disruption in oil flows that such a strike will birng.
12 posted on 02/27/2007 12:07:03 PM PST by Thunder90
[ Post Reply | Private Reply | To 8 | View Replies]

To: cgk

You mean FOX News is reporting on something besides Anna Nicole Smith and Brittany Spears?


13 posted on 02/27/2007 12:07:05 PM PST by P-40 (Al Qaeda was working in Iraq. They were just undocumented.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

Hurry everybody!! Make a run on your bank!! This is teh most series thing I've seen!1111

/s


14 posted on 02/27/2007 12:07:08 PM PST by KoRn
[ Post Reply | Private Reply | To 1 | View Replies]

To: Poser

Don't you mean

OH THE HUGE MANATEE!


15 posted on 02/27/2007 12:07:16 PM PST by RockinRight (When Chuck Norris goes to bed at night, he checks under the bed for Jack Bauer.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: All

Anyone got a live Stock link?


16 posted on 02/27/2007 12:07:22 PM PST by Fast5 (That Just Ain't Rite.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: theDentist

Started in China on fears of Chinese and US market over inflation. Seems like a good time to buy...but then again, I know nothing about the stock market.


17 posted on 02/27/2007 12:07:32 PM PST by tsmith130
[ Post Reply | Private Reply | To 9 | View Replies]

To: P-40

Amazing isn't it?


18 posted on 02/27/2007 12:07:45 PM PST by cgk
[ Post Reply | Private Reply | To 13 | View Replies]

"Hovering around a 500 point loss for this day alone"


19 posted on 02/27/2007 12:08:10 PM PST by cgk
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

How low will it go?


20 posted on 02/27/2007 12:08:16 PM PST by ichabod1 ("Liberals read Karl Marx. Conservatives UNDERSTAND Karl Marx." Ronald Reagan)
[ Post Reply | Private Reply | To 1 | View Replies]

To: RockinRight

"Good thing I don't have crap in my 401k as it is..."

Yep, and as someone in one of the other threads stated, the only shocking part is that I didn't buy big yesterday....


21 posted on 02/27/2007 12:08:29 PM PST by wolf24 ("It's always easy to rally the stupid.")
[ Post Reply | Private Reply | To 11 | View Replies]

To: cgk

Chinese markets had a HUGE selloff overnight..

Up 130% last year..

From Business Week:

The Major contributing factor to today's market upheaval was the action late yesterday by the People's Bank of China to raise—for the fifth time in eight months—the required cash reserves that lenders must park with the nation's central bank.

These moves are aimed at draining liquidity from the banking system and taming the growth in lending, which grew 16% year-on-year in January.


22 posted on 02/27/2007 12:08:31 PM PST by tcrlaf (VOTE DEM! You'll Look GREAT In A Burqa!)
[ Post Reply | Private Reply | To 7 | View Replies]

To: cgk

NASDAQ down 100.


23 posted on 02/27/2007 12:09:01 PM PST by ConservativeStatement
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

I smell Iran is going to be toast.


24 posted on 02/27/2007 12:09:02 PM PST by SolidWood (Attack Iran NOW!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: P-40

I'm sure they'll link this story to how it will impact their estates.


25 posted on 02/27/2007 12:09:04 PM PST by mainepatsfan
[ Post Reply | Private Reply | To 13 | View Replies]

To: All

Over at Democrat Party HQ you can hear the champaign corks popping as they celebrate!


26 posted on 02/27/2007 12:09:17 PM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
[ Post Reply | Private Reply | To 17 | View Replies]

To: cgk

Greenspan's comment about a potential slowdown. He should be taken out behind the woodshed and horsewhipped.


27 posted on 02/27/2007 12:09:18 PM PST by TommyDale (What will Rudy do in the War on Terror? Implement gun control on insurgents and Al Qaeda?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: wolf24

LOL. Good one.


28 posted on 02/27/2007 12:09:20 PM PST by NotJustAnotherPrettyFace
[ Post Reply | Private Reply | To 21 | View Replies]

To: ex-Texan

Check this out.


29 posted on 02/27/2007 12:09:54 PM PST by Calpernia (Breederville.com)
[ Post Reply | Private Reply | To 1 | View Replies]

To: wolf24

Anyone know the reasoning and why it happened today and not yesterday or tomorrow?


30 posted on 02/27/2007 12:09:58 PM PST by RockinRight (When Chuck Norris goes to bed at night, he checks under the bed for Jack Bauer.)
[ Post Reply | Private Reply | To 21 | View Replies]

To: cgk
The FTSE was down 2%. I suggest the American markets will have a similar adjustment by the end of the day.

Regards, Ivan

31 posted on 02/27/2007 12:10:00 PM PST by MadIvan (I aim to misbehave.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

A buying opportunity for some equities.


32 posted on 02/27/2007 12:10:06 PM PST by AU72
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk
"this apparently all started in the Chinese markets this morning."

I would opine that it was also somewhat a result of what Greenspan said yesterday along with today's durable goods report.

The Fed always tightens too much and odds are we're headed for a recession. It's called the business cycle and the market has run up a lot and a sharp correction has been in the cards for a while now.

33 posted on 02/27/2007 12:10:08 PM PST by Proud_texan (Just my opinion, no relationship to reality is expressed or implied.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: cgk
As FR's resident economic ignoramus, I will ask the questions for the rest of us:

What does this mean in terms of our short- and longterm economy?

What does this mean in conjunction with the news about housing sales and consumer confidence?

In short, what does this MEAN to Americans, and what are the folks doing the selling thinking?

Thanks for any thoughts.

34 posted on 02/27/2007 12:10:32 PM PST by Darkwolf377 (Republican, Bostonian, Bush supporter, atheist, pro-lifer)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

Bullseye... this is what is driving this correction. But a lot of stuff will be undervalued when this is over and institutional investors will create a rally for all the little guys. So its not all bad news. Just wish I had gotten into cash before this happened. Live and learn.


35 posted on 02/27/2007 12:10:57 PM PST by navyguy (We don't need more youth. What we need is a fountain of SMART.)
[ Post Reply | Private Reply | To 22 | View Replies]

To: SolidWood

Iran, yep.


36 posted on 02/27/2007 12:11:13 PM PST by txhurl
[ Post Reply | Private Reply | To 24 | View Replies]

To: cgk
For those of us who are too stupid to understand...is this good or bad?

And is it Pelosi's or Bush's fault?

37 posted on 02/27/2007 12:11:16 PM PST by lowbridge ("Of course Americans should vote Democrat" -Jihad Jaara, senior member, Al Aqsa Martyrs Brigade)
[ Post Reply | Private Reply | To 1 | View Replies]

To: theDentist
what was the impetus?

The market dropped on speculation that the market would drop

38 posted on 02/27/2007 12:11:18 PM PST by paul51 (11 September 2001 - Never forget)
[ Post Reply | Private Reply | To 9 | View Replies]

To: cgk

Nevermind, it was just gas.


39 posted on 02/27/2007 12:11:22 PM PST by cdbull23 ("If it's brown, drink it down. If it's black, send it back." - Homer on what's good to drink.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: KoRn

40 posted on 02/27/2007 12:11:23 PM PST by Constitution Day
[ Post Reply | Private Reply | To 14 | View Replies]

To: Thunder90
Nonsense. Iran has nothing to do with it.

It's China.

41 posted on 02/27/2007 12:11:39 PM PST by DCPatriot ("It aint what you don't know that kills you. It's what you know that aint so" Theodore Sturgeon))
[ Post Reply | Private Reply | To 12 | View Replies]

To: Darkwolf377

LOL! You're in good company even if I do say so myself. ;)


42 posted on 02/27/2007 12:11:47 PM PST by Chena
[ Post Reply | Private Reply | To 34 | View Replies]

To: Proud_texan

The Chicoms have been hiding truly astounding amounts of bad loans their banks have been carrying.


43 posted on 02/27/2007 12:11:54 PM PST by AU72
[ Post Reply | Private Reply | To 33 | View Replies]

To: Proud_texan

Greenspan? Bernanke is the new Fed chairman, as far as I know and he's the one who mentioned a recession by late '07 or early '08.


44 posted on 02/27/2007 12:12:17 PM PST by Paved Paradise
[ Post Reply | Private Reply | To 33 | View Replies]

To: cgk
Um, since the Democrats are currently in control of Congress, let's all find ways to blame this one them.

Yes, I know it has nothing really to do with it, but that hasn't stopped the MSM from blaming all market woes on Repubs in the past.

45 posted on 02/27/2007 12:12:37 PM PST by The Blitherer (What the devil is keeping the Yanks? Duncan Hunter for President '08!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

http://biz.yahoo.com/ap/070227/wall_street.html?.v=44


46 posted on 02/27/2007 12:12:39 PM PST by STARWISE (They (Rats) think of this WOT as Bush's war, not America's war-RichardMiniter, respected OBL author)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bahbah

IT'S ALL YOUR FAULT????


47 posted on 02/27/2007 12:12:52 PM PST by Txsleuth
[ Post Reply | Private Reply | To 3 | View Replies]

To: Thunder90

There is a theory on one of the liberal blogs that Cheney is overseas making preparations for an attack on Iran - could be the truth, for all I know.


48 posted on 02/27/2007 12:13:07 PM PST by NoBullZone (Attempting to dispel ... bull*hit)
[ Post Reply | Private Reply | To 12 | View Replies]

To: cgk

Dow down 500 now
What is it that we havent heard yet causing this?


49 posted on 02/27/2007 12:13:09 PM PST by Tigen (Live in peace or rest in peace!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgk

ap on Yahoo

Dow industrials plunge more than 500

http://news.yahoo.com/s/ap/20070227/ap_on_bi_st_ma_re/wall_street_91

NEW YORK - The Dow Jones industrial average is down more than 500 points with about an hour of trading left today. The Nasdaq Composite is off more than 100.



A 9 percent slide in Chinese stocks, which came a day after investors sent Shanghai's benchmark index to a record high close, set the tone for U.S. trading.

Investors' confidence was knocked down further by data showing that the economy may be decelerating more than anticipated. A Commerce Department report that orders for durable goods in January dropped by the largest amount in three months exacerbated jitters about the direction of the U.S. economy, which were raised a day earlier when former Federal Reserve Chairman Alan Greenspan said the United States may be headed for a recession.

"It looks more and more like the economy is a slow growth economy," said Michael Strauss, chief economist at Commonfund. "Moderate economic growth is good — an abrupt stop in economic growth scares people."

The market had been expecting the government on Wednesday to revise its estimate of fourth-quarter GDP growth down to an annual rate of about 2.3 percent from an initial forecast of 3.5 percent, and grew increasingly nervous on Tuesday that the figure could come in even lower.

The housing market, which the Street had been hoping had bottomed out, also looked far from recovery after a Standard & Poor's index indicated that single-family home prices across the nation were flat in December. A later report from the National Association of Realtors said existing home sales climbed in January by the largest amount in two years, but the data didn't erase housing-related concerns, as median home prices fell for a sixth straight month.

A suicide bomber attack on the main U.S. military base in Afghanistan where Vice President Dick Cheney was visiting also rattled the market.

China's stock market plummeted Tuesday from record highs as investors took profits when concerns arose that the Chinese government may try to temper its ballooning economy by raising interest rates again or reducing more of the money available for lending.

"Corrections usually happen because of a catalyst, and this may be it," said Ed Peters, chief investment officer at PanAgora Asset Management. "The move in China was a surprise, and when a major market has a shock it ripples through the rest of the market. With all the trade that goes on with China, there tends to be a knee-jerk reaction with that kind of drop."

The Shanghai Composite Index tumbled 8.8 percent to close at 2,771.79, its biggest decline since it fell 8.9 percent on Feb. 18, 1997. Since Chinese share prices doubled last year as investors poured money into the market after the completion of shareholding reforms, trading in Shanghai has been very volatile.

Hong Kong's benchmark Hang Seng Index dropped 1.8 percent, and Malaysia's Kuala Lumpur Composite Index fell 2.8 percent. Japan's Nikkei stock average fell a more moderate 0.52 percent, but European markets were rattled — Britain's FTSE 100 lost 2.31 percent, Germany's DAX index dropped 2.96 percent, and France's CAC-40 fell 3.02 percent.

Bond prices rose as investors bought into the safe-haven Treasury market, pushing the yield on the benchmark 10-year Treasury note down to 4.55 percent, its lowest level so far this year, from 4.63 percent late Monday. The bond buying was sparked primarily by the durable goods orders, which the Commerce Department said fell 7.8 percent, much more than what the market expected.

The durable goods drop raised the chance of the Federal Reserve easing interest rates later in the year — a possibility that makes the bond market an attractive place to be right now.

The hope for slowing inflation could be dashed, though, if energy costs keep rising. Oil prices initially fell Tuesday on worries that Chinese demand could be dampened should its economy slow down, but later rose on escalating tensions in the Middle East. Crude rose 4 cents to $61.43 a barrel on the New York Mercantile Exchange.

The dollar slipped against other major currencies, while gold also fell.

The Dow has been climbing at a steady rate since last summer, but over the past few trading sessions, stocks have pulled back on the worry that the market is due for a correction. Many analysts have noted that the Dow hasn't seen a 2 percent decline in more than 120 sessions.

Data indicating a slower economy had recently been giving stocks a boost on the hopes that the Fed will lower interest rates, which could reinvigorate consumer spending and the struggling housing market. But the market may fall further before that happens, analysts said.

"If in a week or two, the psychology in the U.S. market turns to the realization that we're in a modest growth economy of 2 to 3 percent growth, that will help temper inflation pressures going forward. If that perception evolves, there's an increase in the likelihood that the Fed will be lowering rates rather than raising rates. Structurally, it's a development that should be good for the equity market, but it might be an event that unfolds after prices are lower," Strauss said.

Declining issues outnumbered advancers by about 7 to 1 on the New York Stock Exchange, where volume came to 1.39 billion shares.

No sector was left unscathed by Tuesday's sell-off, and all of the 30 Dow components were lower in early afternoon trading.

NYSE-listed shares of Chinese companies plunged. China Mobile Ltd. tumbled $3.39, or 6.9 percent, to $45.89. Mindray Medical International Ltd. dropped $3.69, or 12.85 percent, to $25.02. China Eastern Airlines Corp. fell $4.435, or 13.14 percent, to $29.315.

On the Nasdaq, Internet company Baidu.com Inc. fell $4.44, or 4 percent, to $107.27. Shanda Interactive Entertainment Ltd., which develops online games, fell $1.42, or 5.7 percent, to $23.50.

___

On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com


50 posted on 02/27/2007 12:13:11 PM PST by NormsRevenge (Semper Fi ......)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-100101-150151-200 ... 451-455 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson