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."
Wouldn't you like to borrow $trillions at 2% in which to buy up F50 companies for pennies on the dollar? I'm surprised more people don't see what is happening.
Forget these pathetic "tea parties", tax rebellion, states' rights, "wait until 2010, 2012, ..." or any other host of inconsequential activities. This game is all about the government's ability to fund debt and cover the interest costs.
Hit either and we can kill the beast.
FOX showed a clip of him declaring war on the affluent. He said he was ready for a fight. He looked livid. How dare the American citizens appose his glorious policies?
Actually, Bush wanted “Socialism-lite.”
The Dems just want full blown Socialism.
” Wow.... At some point, it’s going to have to start dawning on Americans just what the Democrats have done to them “
Spent weekend among liberal Democrats at a family function.
Some of whom are big donors.
Had to stomach their anti Republican trash talking before the election.
We need a change,blah, blah.
They’re educated people who are very dumb.
Now that they have their change, one of the most virulent anti Republicans actually said to me
” I hate Obama more than I hated Bush, every time he opens his mouth , the DOW drops.”
But, I said-you voted for Obama didn’t you?
Well-I really wanted to vote for McCain, but,he was too old and Palin scared me.
5000 by 5/1/2009
Dow or gold?
I’m meeting with my investment advisor next week. My porfolia as lost $200,000 of value in the past three months. My instinct is to cash out and move on. However, I have a nagging feeling that may be exactly what The Marxist Onada wants.
Anybody have any incite out there?
Only those rich, evil capitalists care (or even know) about the stock markets.
Thanks. I loved your story.
No wait until it goes under 2000.
On second thought wait until it goes under 1500.
"More and more investors are seeking the safety of U.S. government debt," said Kevin Giddis, managing director of fixed income for Morgan Keegan & Co. "Why? Why not? I mean, what else are you going to do with your money?"
GET A CLUE PEOPLE!
On steroids X 10.
“Just make sure your Money Market is bullet proof.”
Currently the us govt has guaranteed all money market funds until 12-31-09.
Of course, the big O could reverse that.
And there is an incredible amount of risky paper in most money market funds which is why the govt guaranteed them to stop a run on them last fall.
Someone take pity on me whom is economically-challenged. To what level does the Dow have to descend before the market is considered “crashed”?
Call every House member and every Senator up for re-election in 2010 and raise Hell. Tell them that if they enact anything resembling BO’s budget, that you will vote Republican next year.
Do not email; they don’t bother to read them.
Call them. I did.
“Actually, Bush wanted Socialism-lite.”
Actually, that’s bullsh**t...
What Bush did was COMPROMISE Democrat biig hammers like Prescription drups, No Child, etc,etc, that the lib media was ALREADY ramming down our throats.
He made them HIS, made them SMALLER, and oh how the Democrats hated him for it!!! I didn’t agree with it, but I did understand the politics of it.
Try a few FACTS before you spew crap like that, K??
great graphics in post 55.
The Republicans started it.
Be very careful of Gold. It is riding a bubble. Oil is not a bad idea right now. I bought 800 barrels at $31.00. It will start to gain as the summer progresses. And Obama is adding another dollar per gallon in taxes. So expect a rapid buy before that happens. The reduction in tax cuts for Oil Companies will also drive the price up rapidly.
Other than that, there is little else to even begin to predict.