Skip to comments.CNBC-Dow Drops Below 6,900 as AIG Rattles Market (6831 NOW!)
Posted on 03/02/2009 9:03:40 AM PST by tcrlaf
The Dow Jones Industrial Average hit its lowest level in 12 years, slipping below 7,000, and then 6,900, as investors grew increasingly skittish over the state of the stock market amid the wave of government bailouts.
The Dow Jones Industrial Average dropped more than 200 points, or nearly 3 percent.
The S&P 500 continued its descent toward 700, while the Nasdaq dropped below 1,350.
The Nasdaq suffered the least of the three major indexes as Intel and Dish Network provided a few glimmers of hope amid the wreckage.
Major U.S. Indexes.DJIA6827.57-235.36-3.33%946,324,000.NCOMP1336.68-41.16-2.99%318,253,300.SPX707.24-27.85-3.79%2,318,764,800
And, while some investors thought the selling was coming to a close, it can get worse from here, Art Cashin, director of floor operations at UBS, told CNBC.
"You're beginning to hear people get a little more despondent as this continues to sell day after day," Cashin said. "There's a growing sense of frustration about not quite being in control here Not knowing where the next shoe in Imelda Marcos's shoe closet is," Cashin said.
He pegs the next key level at 700 in the S&P.
Financials led the broader decline as another government intervention scared the market.
The big bailout news for Monday focused on American International Group, which reported a $61.7 billion quarterly net loss, after the government was forced to pump billions in fresh capital into the insurance giant the third such cash infusion.
The $30 billion bailout provided a stark reminder that some of Americas biggest corporations are still in a critical condition.
Shares of AIG [AIG 0.48 0.06 (+14.36%) ] gained sharply following news of the capital injection and earnings.
But the climate of uncertainty continued to spread havoc through the market, particularly in financials.
"The market has yielded on so many support levels here and I think there's a level of emotional despondency starting to build," Art Cashin, director of floor operations with UBS, said on CNBC. "We may start to talk about capitulation here."
You should spend a night at the local Holiday Inn Express, then you'll be more of an expert then Barney Fwanks on the ECONOMY. Wait, a kid running a lemonade stand has more EXPIRENCE with the ECONOMY than the LIBERALS in congress and Zerobama!!
Unfortunately, some of us didn't!!
I don’t think Obama and the team of Marxists he has assembled give a tinkers-damn about the stockmarket and all our investments tanking... all they care about is getting their versions of utopia installed and turning the USA into a mini-me of Venezuela —a once prosperous nation with a capitalistic system.
THE Berlin Stock Exchange still existsas a building,
as an institution with large offices, with brokers and
bankers, with a huge organization for daily announcement
of stock and bond quotations. But it is only a
pale imitation of its former self and of what a stock
exchange is supposed to be. For the Stock Exchange
cannot function if and when the State regulates the flow
of capital and destroys the confidence of investors in
the sanctity of their property rights.
The glorious days when millions of marks daily
poured into the Stock Exchange, when the bonds and
securities of foreign countries were handled, when new
concerns and trusts were promoted and exciting speculative
maneuvers were stagedthose glorious times have
long since departed, and even the doorkeeper who
vividly remembers the excitement of the “good old days”
does not believe that they will ever return. Yet the
decrepit machine still runs.
Repeat: YET THE DECREPIT MACHINE STILL RUNS
Yet, Gallop will have us all believe he is at 75% popularity and all our GOP leaders (except Rush Limbaug) are afraid to take him on for all this crap.
0bama hasn’t even been in office for 2 months and I already HOPE for CHANGE!
Zero could make Chavez look like Reagan.
I asked myself today, when will someone speak up? How bad must it become before someone says “Wait...we need to try something else!”
Looks like we may break down through 6800 before the end of the day unless the PPT comes to the rescue.
Because the DEMOCRAT LIGHT Party nominated a DEMOCRAT for President.
Has it dawned on obama that many Americans are in the age bracket in which they do not have years to wait for a turn around?
He can keep his change.
This whole thing about insurance for children, Maryland has provided insurance for children under 19 since 1998, I am sure many other states had it too. He’s acting like it is something new.
Your not the same Freeper who predicted 6000 by March are you? That prediction, made back when we were still in the high 8000s seemed a bit of a stretch at the time. But yet here we are.
I knew his CHANGE will have us HOPING for a CONSERVATIVE in 2012.
This whole thing about insurance for children, Maryland has provided insurance for children under 19 since 1998, I am sure many other states had it too. Hes acting like it is something new.
Y’all need to watch CNN...here is what they said on 19 Jan:
NEW YORK (CNNMoney.com) — Optimism about Barack Obama’s first 100 days as president is running high, but Wall Street’s post-inaugural celebration may well be short-lived.
“I think there’s going to be something of an Obama honeymoon for a few weeks,” said Terry L. Morris, senior equity manager at National Penn Investor Trust. “But I think there’s still a lot of pessimism out there about the economy.”
Since 1932, stocks, as measured by the S&P 500, have gained an average of 1.6% in the first 100 days of a new president’s term regardless of the party. The S&P 500 has gained 0.9% on average under a Republican president and 2.2% under a Democrat like Obama, according to research by Standard & Poor’s chief investment strategist Sam Stovall...
History favors the Democrats: Similar to the first 100 days, stocks tend to perform better for the rest of the year when the Democrats are in power, according to S&P. In the subsequent eight months, stocks on average lose 7.7% under Republicans and gain 4.8% under Democrats going back to 1932.
“Election year history favors a Democratic president, but nothing is certain in this world except death, taxes and volatility - of share prices and emotion,” wrote Sam Stovall, S&P’s chief investment strategist in a recent note...
The hope surrounding Obama’s election has been compared to the hope felt after John F. Kennedy’s election in 1960.
For Wall Street, that optimism correlated with higher stock prices. During the first 100 days of JFK’s administration, the S&P 500 gained 8.9%. It gained another 9.6% in the rest of the year, according to S&P...
Stocks are perhaps due for a bigger bear market rally in the first half, but the outlook is so cloudy it’s hard to see what could cause it, said Drew Kanaly, chairman and CEO at Kanaly Trust.
“I think a lot of investors are waiting for the new administration to come in,” he said. “They want to see what they are going to do first before they start participating more fully in the market.”
First Published: January 19, 2009: 3:02 PM ET
6811.96 -250.97 (-3.55%) Mar 2 1:47pm ET
Looks like we have had another round of margin calls with gold sales to meet them. On the first round gold plunged then recovered and now it plunges again as those holding equities on margin must sell their gold to make good on further margin calls.
I don’t understand. CNN said stocks do better under Democrats...what happened?
I sold my remaining stock a week ago - about 6 months late.
I’ll admit, I never thought ANY President would be so viciously anti-business! But for the record, I campaigned and voted for McCain-Palin. Mostly Palin.
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