Dow Closes Down 107 at 10,739 on Surging Oil Prices

Yahoo News ^ | 7-14-06 | Yahoo News

[soccer_maniac]

Stocks tumbled for the third straight day Friday on soaring oil prices, fighting in the Middle East and sluggish retail sales, just about wiping out the Dow's gains for the year.

The Dow Jones Industrial average (down 106.94 to 10,739.35, Charts) sank 1 percent, leaving it up just 0.2 percent for the year. The world's most widely watched stock market gauge has tumbled 395 points since Tuesday's close.

The broader Standard & Poor's 500 (down 6.09 to 1,236.20, Charts) index slipped 0.5 percent, and the Nasdaq composite (down 16.76 to 2,037.35, Charts)slid about 0.8 percent Friday, dragging them further into the red for the year.

The S&P 500 is down about 1 percent in 2006, while the Nasdaq, laden with tech stocks, has tumbled 7.6 percent so far this year.

[soccer_maniac]

Dow today

[soccer_maniac]

5 day DOW trend

[netmilsmom]

What was the price of oil?

[GSlob]

Time to start buying, little by little.

[JusticeForAll76]

If you have to ask, you can't afford it :)

I believe it was just a little under $78.00

[netmilsmom]

Oy!

[MNJohnnie]

Actually barely over $77.00 and dropping. Most of the suckers have been cleared out of the Market now.


http://www.bloomberg.com/energy/



PETROLEUM ($/bbl)


PRICE* CHANGE % CHANGE TIME
Nymex Crude Future 76.81 -.22 -.29 15:50
Dated Brent Spot 76.04 -.25 -.32 15:06
WTI Cushing Spot 77.03 .33 .43 15:38

[Attention Surplus Disorder]

Bad week for the longs, as we say.

Monday: If the world doesn't blow up over the weekend there should be a decent rally to start OE week. However...plenty of folks will be getting out on the pump, make no mistake about it.

[quantfive]

Recession 2007 here we come. This mid-east crisis is going to get worse because you have to solve the problem of Iran and Syria not just the proxies of Hamas and Hezbollah. Oil is going to go up from here. Our country blew it after the last oil crisis in the late 70's. We started down a road of energy independance and gave up on it. The blame falls on the envrio-whackos and the greedy who have forgotten we are all American patriots. Now the same mid-eastern countries starting the same problem all over again and we will all pay for not dealing with this when we should have.

[alloysteel]

All this means, folks, is that a number of people out there are crapping fishworms, and they are retreating for the wrong reasons.

Crude oil prices up? Check various alternative fuel technologies, and invest in them. Gold up? Invest in gold mining stocks.

Opportunity just came knocking at the door dressed in rags again. Contrarian thinking would be an excellent strategy now.

[soccer_maniac]

5 year charts

[Eagles Talon IV]

Dow is forming a bottom at this time. The VIX (CBOE Volatility Index) and the VXN (CBOE NASDAQ Volatility Index), are signaling fear among investors and we may be seeing capitulation and a wring out of the weak among investors who in effect are saying "Here take this &^%$^ stock and get me what you can". While there may be a bit more downside we are ready for a turn around on a bit of good news.

Of course if the conflict in the ME gets worse and spreads, all bets are off.

[soccer_maniac]

Forming a bottom?

Many experts believe the market could fall another 10-15%

[Hawkeye's Girl]

Good time to buy.

[nascarnation]

"sell in May and go away"
an old Lou Rukeyser aphorism
one of the few times I had good timing

feels like 1973 all over again to me

[fhlh]

are the greedy the hedgefund managers on the Merch?

[Cobra64]

Our country blew it after the last oil crisis in the late 70's. We started down a road of energy independance and gave up on it. The blame falls on the envrio-whackos and the greedy who have forgotten we are all American patriots. Now the same mid-eastern countries starting the same problem all over again and we will all pay for not dealing with this when we should have.

Bingo! Most of us here lived through the Carter years, we became complacent and allowed the greenies to prevent us from drilling, building refinieries and the delivery infrastructure, and building nuke plants.

[mewzilla]

Most of us here lived through the Carter years...

And, FWIW, that's the reason I'll never own a gas hog :)

[Eagles Talon IV]

Could? Sure it could. It "could" fall 25%, 50% and it could also go up by a like amounts but in the end it is fundamentals that drive the market and these interim moves caused by pure emotion are short and transitory.

As far back as you care to check the equity markets have gone up 2 of every 3 days or about 66% of the time. If you own stock in good solid companies then just hang in there and look for opportunities to pick up more of it when the market sells off on fear as it is doing now.

Armand Hammer, Industrialist oil tycoon, said it best when he said the best time to buy equities is when "the blood is running in the streets"

BTW, I recall in 1987, October, when the DOW dropped about 25% in one day, the "experts" were saying it would drop ANOTHER 40-50%. Of course it did not. Since these guys don't know any more about what's going to happen then I do, their prognostications are no more valid then mine.