Skip to comments.Nightmare on Wall Street: Dow Plunges 513
Posted on 08/04/2011 1:38:29 PM PDT by Nachum
The blue chips nose-dived 513 points into correction territory, while the broad S&P 500 shed 4.8%, after anxiety over the economy sent traders racing out stocks and commodities.
According to preliminary calculations, the Dow Jones Industrial Average fell 513 points, or 4.3%, to 11,384, the S&P 500 tumbled 60.2 points, or 4.8%, to 1,200 and the Nasdaq Composite slid 137 points, or 5.1%, to 2,556. The FOX 50 tumbled 37.5 points, or 4.2%, to 864. Related Video
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Tension on Wall Street was extremely high on Thursday. Traders piled up into Treasury bonds, seen as one of the safest non-cash assets during tumultuous times. Indeed, Treasury yields on 10-year Treasury securities dipped well below 2.5% -- the lowest since November.
"The mood is pervasively negative," said Peter Kenny, managing director at Knight Capital Group. "It would take quite the imagination to come up with a silver bullet" to re-instill confidence in the economy.
(Excerpt) Read more at foxbusiness.com ...
Turns out, the markets weren’t worried about the end of borrowing. They were worried about the endless borrowing.
The Dows 50 worst days
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Happy Birthday, Obama.
Thanks for this gift you have given America.
The numbers being reported are all over the board.
I don’t trust a single one of them sunnsabitches.
In the last 3 trading days almost 50% of the stock gains of the past year were erased.
It’s going to be REALLY interesting what happens, tomorrow.
Note to self:
Don’t own stocks when President is a communist.
Are you sure they aren’t just depressed that Obama turned fifty?
There goes the old 401(k). Looks like I’m going to have to work until I keel over at my desk.
I would be happy to have that kind of job security.
All of this is political maneuvering for power grabs and is designed to scare the "little people" into panicking and demanding dramatic, often unwise action. It will probably succeed.
This market is NOT being moved by small investors AT ALL. Almost all of them are on the sidelines. The market now ONLY moves through trades by VERY large players who have an agenda. They are not afraid of what government or anyone else is doing. They merely move the market to get someone's attention (i.e. Either do as we say or we'll create riots for you to deal with). It's really pretty simple.
It's pretty obvious the markets don't like the debt-ceiling result. I think Geithner indicating he's staying is another negative. Perhaps the rumor that Obama and Bernanke think they're "out of bullets" is also a bit disconcerting.
I'm not betting the farm, but I'm a buyer right now, I think the market will rise in the near term.
The private sector is very, very resilient, and though this guy has pummelled us at every turn, we've hitched up our belts and gone to work for the most part. Corporate profits are up, and some will wake up tomorrow and realize that crude just went down five percent today too.
“Light, sweet crude plunged $5.30, or 5.8%, to $86.63 a barrel. Wholesale RBOB gasoline slumped 19 cents, or 6.6%, to $2.74 a gallon. “
Every cloud has a silver lining, I suppose.
Obama - the Economy Killer.
Those figures are no pomegranates, right Harry Reid?????
This market was way overvalued and this correction had to come.
Do people think the market is only suppose to go up?
Happy Birthday, Dictator Obama.
the plunge protection team must have had an obama birthday party hangover.
Do people think the market is only suppose to go up?
The value of the market includes inflation. The inflationary effects of QEn get included.
VIX is up over 30%...
IMPORTANT NOTE: Investors are fleeing to CASH or Gold, not bonds or treasuries. There are no safe havens left.
Friday’s Unemployment Report is going to be a real killer, and a lot of people know it. Mid-Level retail stocks got killed today.
“Its going to be REALLY interesting what happens, tomorrow.”
The poor are going to sell off to protect what little money they have left.
The well connected are going to wait until the carnage is over and buy up everything at discounts.
The middle class will pay for it with some coaccamammie bill to protect them from predators.
Cash me out. See ya!
Want a silver bullet? REPEAL OBAMACARE!
You forgot the sarc tag. FREEPERS are not that stupid.
Sure, prices are cheap tonight compared to whatever marker you pick, but that doesn't mean that after a dead cat bounce maybe, they will go anywhere upward.
The private sector in Japan was resilient too, until it went flat for about ten years.
I agree. Isn't there a labor report coming out tomorrow? (not that it will really matter since I personally believe those numbers are WAY too massaged.)
And why would cashing out be stupid, there are a lot of things to invest in, probably a lot of traders will be pawning their stuff tomorrow. LOL
True this: "Large investors have moved so much money into cash accounts at Bank of New York that on Thursday the bank said it would begin charging some clients a 0.13 percent fee to hold their cash.
"In the past month, we have seen a growing level of deposits on our balance sheet from clients seeking a safe-haven in light of the global interest rate and credit environment," the bank said in a statement to The Associated Press."
From this source: Click here.
Well the penny stock people obviously cash out daily or so but long term people should not cash out unless they are still ahead. If they are losing money then it is a pretty dumb thing to do.
The Govt is selling short to drive buyers to Treasuries and get more money to help the deficit?
Foreign investors pulling the plug because of the dumb debt deal?
How’s all that hopey changy working out for you libs? I think a lot of freepers saw this coming.
Uh, actually the S&P 500 and NASDAQ drops were greater than the DOW’s drop.
Buy low and sell high? That sounds so crazy it just might work!
You are correct though. All too many individual investors do the exact opposite.
“Note to self: Dont own stocks when President is a communist.”
This is NOT the currently acceptable, Party/MSNBC-Approved Current truth!
TODAY’S current truth, parotted by Daily KOS all day today, has been this is THE TEA PARTY’S FAULT, for asking for financial Responsibilities!
There is no sarc tag because this isn’t Sarcasm, it’s TRUE....
And I’d be willing to bet worthless American Greenback that this line is repeated tonite on the MSNBC Hate Shows.
Wait until tomorrow morning!
You’re absolutely right. My IRA was never doing that hot for many years, and then in March 2009, at it’s absolute bottom, I made my yearly investment, plus reallocated some of my existing investments. I got a lot of shares for the money invested, a heck of a lot more than if I had invested at the high points of the market. After it went back up, I’ve been way ahead ever since.
Only that is the problem - assuming a rebound. That will only happen if Obama is banished and we get some real-balled Republicans to control all three branches come 2012.
I really don't think that is going to happen.
That’s right and the NASDAQ leads the DOW.
Probably be more excitement tomorrow.
Thats a great tag line. You should get quote of the day.