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."
What a joke that anyone ever elected Obama on the basis that he could fix the economy...based on what? His reported good looks?
Denninger said 4200 if obama fails to square off and admit the corruption and deal with it (ha)
and 4200 was his optimistic prediction
along with a banking holiday
It’s the 1970s all over again! And we’ve got Jimmy Carter Part 2 in the White House!
Leave it to CNBC to blame this on AIG or any entity other than Obama’s and the left’s policies.
The democrats are being vicious, politically selfish, and hurting a LOT of people. Never before has our government deliberately declared war on it's own citizens.
I’m about there now.
5000 by 5/1/2009
Don't see any way we aren't going to lose more soooo taking the money we have left and placing it "out of harms way" is what we are basing it on.
At what point does the reality set in that “Obama Destroyed the Stock Market”. I mean, sure times are bad, but the market reflects the future as much as the present and the market is recoiling against Obanomics as much as grim financials.
The average person who watches only mainstream media is giving Obama high ratings for his handling of the economy.
“I think the market is now in capitulation.”
You haven’t seen capitulation.
(from Tom Cruise in MI 1, Kitrick “I know you must be very upset” Cruise replies “you have not seen me very upset”)
6822.47 -240.46 (-3.40%) Mar 2 12:14pm ET
If this was Pres Bush it would be ‘BREAKING NEWS, TOP STORY” on TV, radio, and entertainment shows for weeks.
Do not count on Americans seeing reality anytime soon.
Why was he EVER elected? No experience, not vetted, part of the Chicago clan, the list goes on and on.
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