Skip to comments.Dow falls 300 points, Nasdaq plunges 2% as Street eyes Fed, oil
Posted on 08/20/2015 11:52:28 AM PDT by Enlightened1
U.S. stocks fell more than 1 percent on Thursday, pressured by continued uncertainty over the timing of a rate hike and low oil prices. ( Tweet This )
"The market has really taken a pessimistic stance vis-a-vis the Fed," said Dave Schiegoleit, a senior portfolio manager with The Private Client Reserve of U.S. Bank in Los Angeles.
"I think we're hearing comments from people taking a dovish stance that the Fed could cramp the fragile growth we're seeing," he said, noting that he expects a rate hike in September. On the hawkish side, "if the Fed holds off then that means the Fed is seeing something the market isn't."
The Dow Jones industrial average fell more than 300 points, with Merck and Disney leading nearly all blue chips lower. The index is off more than 4 percent for the year so far.
Bernstein downgraded Disney to "market perform" from "outperform," saying valuations for media stocks need to be adjusted because of an increased risk premium regarding affiliate fees.
The Nasdaq Composite lost more than 2 percent to near 4,900, with Apple off nearly 2 percent and biotechs falling more than 2 percent. The index is up about 3.5 percent year-to-date.
The S&P 500 fell into negative territory for the year and struggled to climb out of it, with consumer discretionary the greatest decliner on the day. Energy is the greatest laggard for the year, down 17 percent. The index is below its 200-day moving average.
(Excerpt) Read more at cnbc.com ...
DJIA @ 1156 PDT
-286.12 / -1.65%
Lots and lots of money has bet on high oil prices. They are losing their rear ends now. Going to get a lot worse.
Since we moved from net consumer to net producer (or close to it).
How close are we to September?
Lots of loans made to drill wells back when gas was $70-$80 per barrell. Now that it is at $40 those loans are underwater. Just a matter of time until the banks call and say ‘put up more collateral or we are forcing you into bankruptcy.
The Fracking Bubble was financed with junk bonds which will now be worthless when the smaller companies go bankrupt because the price of oil is below their break-even price. Happy Shemittah 2015! The Day of Release is September 13, 2015.
Because it may cause a slight improvement in the economy. That would mean the Fed MUST raise rates. However, at the fake UE 3 number they should already have rates at close to 4% or better since it signals ‘full employment’ at 5%.
The fake numbers, trillions and trillions of fake cash infusions and low rates are all conspiring to prop up a market whose real value should be around 40% lower than what it is now.
Meaning, people are ditching cable.
Pretend if you will, you are employed by an oil or oil services company. Those jobs are drying up at a rapid pace.
Here in Texas lots of people are losing their jobs. It will have a domino effect on almost everybody.
I know this isnt the way most of the economy reacts to Oil prices, but when Oil prices go up, my business goes up. When prices go down, business slows down.
And things are not looking good for business right now. The Oil Companies have to think its worth drilling in order to drill. And right now its not worth it.
It's clear that the hussein regime has specifically targeted Texas. He bows to his mideast muzzie masters who seek to destroy the Republic's bulwark against the caliphate. The Soros/Buffett duo is also in league with the mooselimbs. The signs of the weak economy are everywhere -- just as the regime planned as part of the ongoing Jade Helm operation.
How close are we to September?
It’s fun to go to Youtube and search September 2015 and only look at hits from the last week. :-)
People should prepare if only because it will be at the very least a somewhat self fulfilling prophesy.
If you make your living off of it it's bad.
Obama destroying the U.S. economy
“The fake numbers, trillions and trillions of fake cash infusions and low rates are all conspiring to prop up a market whose real value should be around 40% lower than what it is now.”
Agree, except I say 30%.
Not long ago I said here on FR the economy was going to crash and was told I was crazy and that fracking alone was going to save the country’s economy. What happened?
True it has already lost 10%
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