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."
Before the faux State of the Union address. I heard a news twinkie from NPR make the statement. That the President was not going to be moved at the “WHIMS OF THE MARKET”
Yes, indeed...It is truly the time of the the fiscal vampire. Now that I think of it, I have never seen president Zero’s reflection in a mirror!
Me too....Palin/Jindal 2012...
The study that was done that ABSOLUTELY PROVES THIS TRUISM, correctly measured stock market performance with A STARTING POINT OF 1929 AND ENDING IN 2000.
The reality is, if you delete the Hoover years, the market does much better under republicans.
I have a sneaky feeling “The Government” wants me to cash out and put my money in government instruments. It is one way to drain private sector to fill government caufers.
I am thinking that real estate is the way to go. It is tangible, there’s only so much of it and it can be defended.
Yes, that is when I will welcome the increase in interest rates. I could use a good 21% CD again, like they were in the Carter years.
WOW that site makes the Troofers, the Kennedy assasination and the Blood Libel of the Jews look like mainstream history....$1.1 Quadillion....that is a lot of dougn, LMAO.
No, they elected a socialist.....
Oh, I believe that, I think he doesn’t care because he doesn’t believe in a capitalistic system and has little knowledge of economics. I also believe Soros is behind this and they are systematically trying to destroy the very fabric of this country.
He has only a politicians' mindset.
This is looking more and more like Pol Pot's taking Cambodia back to Year Zero.
Yes the SOCIALIST PARTY nominated a SOCIALIST with help of ‘JOURNALISTS’ who has ‘TINGLY FEELINGS RUNNING UP THEIR LEGS’ when they report on the ‘American Chavez’.
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