Dow plunges 733 as new data points to recession

AP ^ | 10/15/08 | Tim Paradis

[prolifefirst]

Despair over the economy sent Wall Street plunging again Wednesday, propelling the Dow Jones industrials down 733 points to their second-largest point loss ever. Stocks fell on a combination of disheartening economic data, including a big drop in retail sales and a Federal Reserve report that said tight credit conditions are hurting businesses across the country.

The government's report that retail sales plunged in September by 1.2 percent -- almost double the 0.7 percent drop analysts expected -- made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market.

The Commerce Department report was sobering because consumer spending accounts for more than two-thirds of U.S. economic activity.

[pallis]

Quick! Give someone another trillion dollars. Fire up the printer.

[politicket]

Profit taking today, poossible run up to the end of the week.

No way.

I'm simply amazed at how many people STILL don't even understand what this problem is all about.

[softwarecreator]

weapons will be the only thing to protect us

Thank you.  BTW: Go wings!!!  (Flyers look good for this year, too)

[Logical me]

It should be obvious now that there is no bailout that will work to help the economy recover. Banks should be allowed to fail. If they have no life saver, they will work hard to survive. They threaten to fail to extort tax money. This is the method that liberals only know. Democrats have caused this problem with the market and the market should collapse or get their collective asses busy without Government help. It will be hard and many like us will lose much, but it has to happen. Prolonging will not solve anything.

[a real Sheila]

I hadn’t expected this large a drop until Friday the 31st.
Guess we will be getting one then as well.

[Illuminatas]

[TexanToTheCore]

I have railing for two decades over the massive consolidation of banking in the US. This is the result.

[Gen-X-Dad]

The underlying toxic sludge and overleveraged derivatives on top of it have not changed. Don’t allow the media machine that over emphasizes the stock market index to confuse the issue. This ponzi scheme is going down and going down hard. The American consumer knows that and is hunkering down to ride the storm out. The billionaire bailout is meant to save them so they can come back and pick through the bones of what survives.

[Terry Mross]

All he has to do is print more money.

Jackson57, the republicans don’t want to hurt the feelings
of their “friends” across the isle.

[waus]

It looks like Monday was a classic bear market rally.

Tomorrow could be even worse than today.

We might even see the DOW down 1000 tomorrow.

Watch these DOW monthly low levels for a possible bounce:

9/98 7401.07 This one could be hit this week.
10/02 7197.49

Tomorrow see if the 9/01 monthly low of 8062.34 is breached, because that level was already tested last Friday.

If it breaks that level tomorrow, then, the two previously mentioned numbers will more than likely come into play.

JMHO

[backtothestreets]

Just wondering, ... Have the markets had big losses on every debate day? If they have, and given a majority of voters believe McCain is less equipped to deal with the economy, the market performance may have had a major impact on how voters perceive the debate winner and loser before the debates even began.

[hinckley buzzard]

Last Spring I stated that I would be putting the Dow if it crossed 11,000. It did and I did and I'm happy as a clam.

[politicket]

I have railing for two decades over the massive consolidation of banking in the US. This is the result.

It's about to consolidate a whole lot more.

We will be hearing a bunch of psycological babble over the coming days and then the government (through instruction from the Fed) will move in and take controlling interest in a few of the largest banks. We will then see a patterned reduction in smaller banks that are deemed to be 'under performing'.

I'm guessing that we'll see 600-700 banks closed (not branches - banks). This number could go over 1,000.

[Caipirabob]

Dow plunges 733 as new data points to recession

The results of the media pushing Obama in the polls.

[EQAndyBuzz]

Puhleeze.... Read the playbook.

Tonight’s Obama debate win will just reinforce the public that Obama can be trusted with the economy better then McCain can. The polls will reflect that.

The market will then go up 500 tomorrow and 500 on Friday.

[politicket]

The market will then go up 500 tomorrow and 500 on Friday.

Nope...it's heading down - no matter who wins the debate tonight.

[hinckley buzzard]

LOL! "Profit taking?" What profits? Try "loss limiting."

[TexanToTheCore]

Doubt it.

[backtothestreets]

The DOW could have been much worse today. Bank stocks were kept afloat due to government plans to buy bank stocks. Most likely investors holding stocks in these banks saw an opportunity to sell their stocks to a government flush in cash and looking to buy. If not for this, the financials would have dragged the DOW further down. JMHO

[bailmeout]