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."
He declared war on the United States and is finishing the job the 9/11 high jackers failed to do. Why else would he be deliberately destroying us?
Don’t know about you, but I don’t want to “own” AIG with CDS exposure in the world financial system estimated at 1.1 QUADRILLION
Blame socialism. The Dems wanted socialism-lite but they did not think the middle class would be wiped out by it.
This disaster is anything but socialism-lite. This asshat is tearing America apart!....
just looked, down 230 pts...shudder to think where my 401k would be heading had i not moved it to money market for the time being...checked that and made 150 bucks since last week...
Pretty soon, it’s gonna be realllll hard for the Dow to DROP 2600 points before noon.
See, to drop 2600 points, ya gotta be ABOVE 2600 points at the start of trading in the morning .......
Personally, I think this is what Obama wanted. He doesn’t want it to turn around.
Boy, are they in for a surprise. Wait until the carbon tax on businesses and utilities hits their food and fuel bills. They're going to freak!!
The markets are rendering their opinion on the new President: he is an economic illiterate.
The MSM has conjured up every excuse for the continued decline, except for the truth: reaction to his tax, spending, and trade policies.
IMO, we would have been better off if we had elected a man who played golf every day and left everything alone.
Affirmative action. The main stream media felt he was the right color.
Liberals NEVER consider the consequences of their utopian ideas. In 2010 they are going to get their arses kicked by a very angry public.
Nope. It's in realization.
We'll probably see 6,000 pretty quickly - and then panic will only then begin to set in.
We'll see 4,000 on the Dow before this year is out.
I moved my Association's funds into a Treasury Fund almost one year ago.Lousy yield but no real credit risk.
And Oboma is still spending, and spending, and spending. Ching Ching $$$$$$.
gee, I thought maybe 5000 then the inflation bug would hit... looks like I was too optimistic..
i have said for along time now that the enemy would defeat us and bring us down from within using our own gov’t. that day is here.
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