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

Skip to comments.

STOCKS TANK IN FINAL MINUTES OF THE DAY: Here's What You Need To Know
TBI ^ | 10-7-2011 | Sam Ro

Posted on 10/07/2011 2:21:40 PM PDT by blam

STOCKS TANK IN FINAL MINUTES OF THE DAY: Here's What You Need To Know

Sam Ro
Oct. 7, 2011, 4:00 PM

More signs that the U.S. economy is not as bad as everyone thought. But, big downgrades in Europe bring us back to reality.

First, the scoreboard:

Dow: -18
S&P 500: -10
NASDAQ: -27

And now, the top stories:

* The highly-anticipated September jobs data came out with a bang. U.S. companies added 103k non-farm payrolls. Economists expected just 60k. The July and August figures were both revised upwards. However, the unemployment rate was unchanged at 9.1%, which wasn't a surprise. Also, the jobs recovery remains painfully slow.

* Fitch downgraded Italy and Spain in the middle of the trading day. Italy was cut from AA- to A+ with a negative outlook. Spain was cut by two notches to AA- and its outlook is also negative.

* The Euro dived against the dollar after the two downgrades.

* U.S. banks also sold off, as uncertainty remains regarding Eurozone exposure. Everyone's new favorite punching bag, Morgan Stanley got, banged up, even as their biggest competitor Goldman Sachs made a bullish call on the stock. Morgan Stanley fell 6%. Goldman Sachs lost 5%. Bank of America and JP Morgan declined 6% and 5%, respectively.

* Sprint shares dived after a rough investor day.

* Late in the day, the Federal Reserve said consumer credit unexpectedly shrank by $9.5 billion in August, the first contraction in 11 months. Economists expected growth of $8 billion. However, markets rallied after the news came out.

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: bhodjia; default; djia; economy; grease; guinea; investing; markets; obamarecession; stocks
Click here to see the daily DJIA chart.


1 posted on 10/07/2011 2:21:45 PM PDT by blam
[ Post Reply | Private Reply | View Replies]

To: blam
CONSUMER CREDIT PLUNGES BY $9.5 BILLION
2 posted on 10/07/2011 2:24:07 PM PDT by blam ((Deliberate Cruelty Is The Worst Of Human Offenses - Kenko))
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam
More signs that the U.S. economy is not as bad as everyone thought.

OK, it's time we put this lie in its place: it doesn't matter how much "better" the economy is doing (and I certainly take exception to the claim) -- what matters is how the pie is being divided: to union and government employees and pensioners.

Don't tell the rest of us that "the economy isn't as bad" as we know it is.

3 posted on 10/07/2011 2:24:59 PM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
[ Post Reply | Private Reply | To 1 | View Replies]

To: the invisib1e hand

I’d say it’s continuing to bump along the bottom.
With small up and down deviations in the data from month to month.

A year ago I worried that a “recovery” might possibly give Baraq something to run on economically. It looks now like that has minimal chance of happening. Now economists are considering it “optimistic” if bumping along continues rather than another significant leg downward.


4 posted on 10/07/2011 2:29:45 PM PDT by nascarnation (DEFEAT BARAQ 2012 DEPORT BARAQ 2013)
[ Post Reply | Private Reply | To 3 | View Replies]

To: blam
If you take the 60k expected jobs and add to that the 45k Verizon workers who returned to work after their strike you get 105k. Subtracting the unexpected 45k jobs from the 103k you get 58k jobs, less than the 60k expected.
5 posted on 10/07/2011 2:29:45 PM PDT by olezip
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam; Envisioning; waterhill

Stock tanks are what I water my cattle in, though they are pretty low right now due to the drought. (Yes, I live in Texas).


6 posted on 10/07/2011 2:31:32 PM PDT by ixtl (You live and learn. Or you don't live long.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

First, the scoreboard:

Dow: -18
S&P 500: -10
NASDAQ: -27


With all due respect, I don’t think -18 is a “Tank”


7 posted on 10/07/2011 2:33:48 PM PDT by bushwon ("If you think healthcare is expensive now, wait till it is free"--PJ O'rourke)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam
The whole rally this week was generally BS, materialising after Dexia in Belgium made a (mostly) honest report that they were going into the sewer, and the banking boffins in Wonderland announced that they were working on a plan to have a plan that planned to plan a way out for Dexia. There is, of course, no such plan, just a lot of spit and jawbone.

Effectively, the rally in US shares was a short squeeze in front of option expiration. And it just ran out of steam (and new buyers) with 20 minutes to go in today's session.

Do please note that Shapiro, of the IMF no less, said that without a credible plan, it could be SHTF in Wonderland within 3 weeks' time. This is all the more remarkable a comment because, if a meltdown does really occur, the IMF are fapp out of business (not exactly a bad thing, given their atrocious track record over the past 40 years).

Have fun next week, traders. I'm delta short the Fishwrapper and intend to write OOM SP Oct 14 calls next week. About a 1.4% return on capital on what is a VERY low-risk trade. Be alert for an opportunity to buy VIX lightly, probably the Dec or Jan calls. This is a "just in case" trade; just in case the SHTF in the next 5-6 weeks in Wonderland, there is effectively no upper limit for VIX in the short term. In 2008, for example, VIX hit 82 during the crash; spot VIX is right now 36. Think about it. Good trading to all!

8 posted on 10/07/2011 2:34:25 PM PDT by SAJ (What is the next tagline some overweening mod will censor?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: nascarnation
"A year ago I worried that a “recovery” might possibly give Baraq something to run on economically. It looks now like that has minimal chance of happening. Now economists are considering it “optimistic” if bumping along continues rather than another significant leg downward."

That's about the way I see it too. However, I think a lot of the 'survivors' are slowly going broke.

9 posted on 10/07/2011 2:35:25 PM PDT by blam ((Deliberate Cruelty Is The Worst Of Human Offenses - Kenko))
[ Post Reply | Private Reply | To 4 | View Replies]

To: blam

“survivors”?

what are you referring to?


10 posted on 10/07/2011 2:39:51 PM PDT by mamelukesabre
[ Post Reply | Private Reply | To 9 | View Replies]

To: SAJ
"Do please note that Shapiro, of the IMF no less, said that without a credible plan, it could be SHTF in Wonderland within 3 weeks' time. This is all the more remarkable a comment because, if a meltdown does really occur, the IMF are fapp out of business (not exactly a bad thing, given their atrocious track record over the past 40 years)."

Posted to FR yesterday:

"In The Absence Of A Credible Plan We Will Have A Global Financial Meltdown In Two To Three Weeks"

11 posted on 10/07/2011 2:39:53 PM PDT by blam ((Deliberate Cruelty Is The Worst Of Human Offenses - Kenko))
[ Post Reply | Private Reply | To 8 | View Replies]

To: blam
Sorry, blam, I had not seen it on FR.

In any event, such a quote from any honcho at IMF is indeed remarkable, and might be worth repeating for emphasis.

12 posted on 10/07/2011 2:43:23 PM PDT by SAJ (What is the next tagline some overweening mod will censor?)
[ Post Reply | Private Reply | To 11 | View Replies]

To: mamelukesabre
"what are you referring to?"

Mainly the low income people...the ones that still have some sort of job and the ones who just lost a job. They, and the middle-class are becoming poorer, is my point.

Surviving but slowly sinking financially.

13 posted on 10/07/2011 2:43:36 PM PDT by blam ((Deliberate Cruelty Is The Worst Of Human Offenses - Kenko))
[ Post Reply | Private Reply | To 10 | View Replies]

To: SAJ
"Sorry, blam, I had not seen it on FR."

No problem. I like the habit at FR of linking revelant threads. They're more informative and complete.

14 posted on 10/07/2011 2:45:49 PM PDT by blam ((Deliberate Cruelty Is The Worst Of Human Offenses - Kenko))
[ Post Reply | Private Reply | To 12 | View Replies]

To: blam

If you need to know you would have been advised yesterday.


15 posted on 10/07/2011 2:52:00 PM PDT by UB355 (Slower traffic keep right)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam
"But, big downgrades in Europe bring us back to reality...Italy and Spain."

Well, their pre-default acquisitions of Argentina's politics, resources and manufacturing aside, they are important tourist traps. Oh...and Italy's status as main trading partner of Iran.

George Washington:

“Why, by interweaving our destiny with that of any part of Europe, entangle our peace and prosperity in the toils of European ambition, rivalship, interest, humor or caprice?”

“Nothing is more essential, than that permanent, inveterate antipathies against particular Nations, and passionate attachments for others, should be excluded...The Nation, which indulges towards another an habitual hatred, or an habitual fondness, is in some degree a slave. It is a slave to its animosity or to its affection, either of which is sufficient to lead it astray from its duty and its interest.”


16 posted on 10/07/2011 2:54:00 PM PDT by familyop ("Don't worry, they'll row for a month before they figure out I'm fakin' it." --Deacon, "Waterworld")
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

dire again.


17 posted on 10/07/2011 2:55:47 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ken21
"dire again.

Dire Straits

18 posted on 10/07/2011 3:03:27 PM PDT by blam ((Deliberate Cruelty Is The Worst Of Human Offenses - Kenko))
[ Post Reply | Private Reply | To 17 | View Replies]

To: blam

i always liked that song,

and the mama!


19 posted on 10/07/2011 3:08:57 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
[ Post Reply | Private Reply | To 18 | View Replies]

To: bushwon
With all due respect, I don’t think -18 is a “Tank”

I think ^DJI fell 120 or so in 20 minutes (approximate numbers). It sure looked like a tank (and UNEXPECTED).

20 posted on 10/07/2011 3:12:23 PM PDT by steve86 (Acerbic by nature, not nurture (Could be worst in 40 years))
[ Post Reply | Private Reply | To 7 | View Replies]

To: blam

thanks I have not seen that one, I have been curious as to how long the bad news can go on without a meltdown.


21 posted on 10/07/2011 3:13:02 PM PDT by jpsb
[ Post Reply | Private Reply | To 11 | View Replies]

To: blam

And the 0bama machine will take credit for a “miraculous recovery” when the economy continues on its actual course next year. It’s all spin.


22 posted on 10/07/2011 3:16:23 PM PDT by bd476
[ Post Reply | Private Reply | To 1 | View Replies]

To: nascarnation

Right after Obama was elected, I declared he would be a one-term wonder because the economy would still suck for the 2012 elections. I didn’t know then that Obama’s policies would double down on the bad economy.

I am still baffled whether we ultimately deflate or inflate, but I assumed in November 2008 that we had several years of deflationary debt destruction to endure, and I’ve never backed off that position.

Obama will be a one-term wonder because the November 2012 economy will be wretched and he will be blamed for it, rightly or wrongly. As it turns out, rightly. Massive debt is the cause of the economic crisis and he is rapidly raising the debt, making the long term outlook worse, with an ever increasing chance of some kind of financial collapse.


23 posted on 10/07/2011 3:24:57 PM PDT by Freedom_Is_Not_Free (SP12: They called Reagan "unelectable", too.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Freedom_Is_Not_Free

I’m not quite as pessimistic on the post Baraq era.

Especially if we get a POTUS like the Herminator.

I think there is a lot of bottled up activity that could break loose with a better leadership.


24 posted on 10/07/2011 3:28:45 PM PDT by nascarnation (DEFEAT BARAQ 2012 DEPORT BARAQ 2013)
[ Post Reply | Private Reply | To 23 | View Replies]

To: blam

20 points is not “tanking.”


25 posted on 10/07/2011 5:03:21 PM PDT by arthurus (Read Hazlitt's "Economics In One Lesson.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam
"Dire Straits"

Southern Europe


26 posted on 10/07/2011 5:15:38 PM PDT by familyop ("Don't worry, they'll row for a month before they figure out I'm fakin' it." --Deacon, "Waterworld")
[ Post Reply | Private Reply | To 18 | View Replies]

To: familyop
I remember that song but, Runaway was my favorite.
27 posted on 10/07/2011 6:21:39 PM PDT by blam ((Deliberate Cruelty Is The Worst Of Human Offenses - Kenko))
[ Post Reply | Private Reply | To 26 | View Replies]

To: blam

Agreed. I was intending that as a dry joke about tourism in southern Europe and foreign adherences in investments, politics, etc. Some of those of us who’ve had relations certain girls of southern European descent have an even more acute understanding. ;-)


28 posted on 10/07/2011 6:33:11 PM PDT by familyop ("Don't worry, they'll row for a month before they figure out I'm fakin' it." --Deacon, "Waterworld")
[ Post Reply | Private Reply | To 27 | View Replies]

To: bushwon

Not a tank if you don’t look at the big picture, that is.


29 posted on 10/07/2011 6:37:04 PM PDT by EnquiringMind
[ Post Reply | Private Reply | To 7 | View Replies]

To: familyop
"Some of those of us who’ve had relations certain girls of southern European descent have an even more acute understanding. ;-)"

To this day(ahem), I still remember Rosana Servito from San Remo. (Was once my favorite place in Europe)

30 posted on 10/07/2011 6:44:33 PM PDT by blam ((Deliberate Cruelty Is The Worst Of Human Offenses - Kenko))
[ Post Reply | Private Reply | To 28 | View Replies]

To: EnquiringMind

Oh, I am not saying the big picture is good, just seemed that the work “tank” in title was extreme for today’s situation given the huge swings we have had over the past few weeks...


31 posted on 10/07/2011 7:20:12 PM PDT by bushwon ("If you think healthcare is expensive now, wait till it is free"--PJ O'rourke)
[ Post Reply | Private Reply | To 29 | View Replies]

To: blam
U.S. companies added 103k non-farm payrolls. Economists expected just 60k.

And the "experts" were right... You know the old saying, "Figures never lie, but politicians lie with figures."

About 40,000 of those "newly employed" are CWA workers going back to work at Verizon when the strike ended. So more than 1/3 of those jobs supposedly added were people who were voluntarily unemployed.

Mark

32 posted on 10/07/2011 7:23:41 PM PDT by MarkL (Do I really look like a guy with a plan?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: arthurus

20 points is a twitch, in light of the dynamics we’ve been seeing lately.


33 posted on 10/07/2011 7:53:32 PM PDT by joelt
[ Post Reply | Private Reply | To 25 | View Replies]

To: MarkL
"About 40,000 of those "newly employed" are CWA workers going back to work at Verizon when the strike ended. So more than 1/3 of those jobs supposedly added were people who were voluntarily unemployed."

Wouldn't those number have been taken out in the previous report too showing unemployment even worse than it actually is/was?

34 posted on 10/08/2011 4:49:57 AM PDT by blam ((Deliberate Cruelty Is The Worst Of Human Offenses - Kenko))
[ Post Reply | Private Reply | To 32 | View Replies]

To: SAJ

Dexia got a 26 billion dollar loan from the Federal Reserve.


35 posted on 10/08/2011 4:56:17 AM PDT by mewzilla (Forget a third party. We need a second one.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: blam

The IMF’s plan is a one trillion dollar plus bailout fund. I wonder where the IMF will get the money......


36 posted on 10/08/2011 4:57:40 AM PDT by mewzilla (Forget a third party. We need a second one.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: mewzilla
Nicely masked, too. No direct attribution of the "loan" either.

The question is: "What is the effective limit on the creation of fiat money by a country or an institution that is broke, if not yet formally bankrupt?"

We -- or at least TPTB -- seem hellbent on finding out, which action can only result in an horrendous crash.

37 posted on 10/08/2011 7:35:45 AM PDT by SAJ (What is the next tagline some overweening mod will censor?)
[ Post Reply | Private Reply | To 35 | View Replies]

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