Posted on 12/27/2005 1:36:38 PM PST by SierraWasp
Dow slumps triple digits as Treasury yield curve inverts ($INDU, $COMPQ, $SPX, $TNX) by Tomi Kilgore
NEW YORK (MarketWatch) -- U.S. stocks closed sharply and broadly lower, with the Dow industrials suffering its first triple-digit loss in 2 months, as the Treasury yield curve inverted for the first time in five years, sparking fears of a possible recession. The Dow ($INDU) slumped 105 points to an unofficial close of 10,778, its lowest close in 2 weeks and the biggest one-day point loss since Oct. 27. The Nasdaq Composite ($COMPQ) shed 22 points to 2,227 and the S&P 500 ($SPX) slid 12 points to 1,257. The 2-year Treasury note yielded 4.347% while the 10-year Treasury yield ($TNX) fell 0.039 percentage points to yield 4.341%; the only time in the last 30 years that an inverted yield curve wasn't followed by a recession was in 1998, when the curve inverted briefly during the Asian financial crisis. Recession worries overshadowed a sharp drop in natural gas prices amid reports of warmer-than-usual weather, with the front-month futures contract tumbling 10% to a 4-month low of $11.022 per million British thermal units on the New York Mercantile Exchange.
(Excerpt) Read more at bigcharts.marketwatch.com ...
'splain this chart, please? Looks like when yields go down the s&p goes down...but that doesn't make sense. unless it does.
I am! That's why I posted this!! Because a lot of investors thought Santa Claus was still comin, even though he only does it once a year!!!
Greenspan is a fool, or has some kind of agenda. Continually raising the rates will only do good for a few. Everyone else will be holding their cards. Regardless of what anyone says, the market doing this right after Christmas is not good.
Ha Ha Ha!!! Bullseye on that Bear!!! Ha ha ha...
I wish I could answer that. Here's the quote from today's WSJ:
Nonetheless, a near-term inversion would likely ratchet up an already elevated anxiety level in the bond market, as investors worry about a cooler housing market, inflation and energy prices, particularly high home-heating bills.
Greg Habeeb, senior portfolio manager with Calvert Funds in Bethesda, Md., says an inversion between two- and 10-year notes "seems in the cards," but he expects the scale of the flip-flop in yields to be minimal, maybe just 0.1 to 0.15 percentage point over the next few months before things turn back around.
A brief, shallow inversion won't signal any marked slowdown in the economy, says Mr. Habeeb, who manages $5 billion in taxable fixed-income assets.
Over the past several decades, the yield curve has had to invert by two percentage points or more before a recession materialized.
FWIW, I've seen it argued that although the 1998 inversion did not cause a recession here, it led to the Russian debt meltdown and the eventual failure of LTCM. We know what kind of impact that had on the markets here.
It's ok... I actually liked it!!!
Well, I read all the gloom and doom...just popped, I guess.
What's it's juxtaposition to Christmas got to do with anything? Just because a bunch of idiots got spooked on a day that started out good? They're probably liberal investors that became overcomed with gilt because everything was going so well and they hadn't done a dang thing to merit their wellbeing!!! Typical!!!
They're probably liberal investors
Riiight...This is all about liberal investors.
I really hope you don't believe that.
The option of M2M is likely searchable on the IRS website. But you have the right idea, I think you have to elect NOW, pre 12/31, for a return nominally dated 4/15/06....
I once met a guy who had a 1200 page schedule D. No comment necessary!
One reason I'm so skeptical of these BS writers at MarketWatch.com is that it used to be CBS MarketWatch.com and while it was under CBS instead of Dow Jones which purchased it a few months ago, it was obvious these writers were communists in high places!!! (they oughta be fired unceremoniously)
They did their damnedest to drive the markets in the toilet especially during the war rally that started in March '03!!!
You still haven't answered what's the deal with right after Christmas be so telling. I do believe it was a relatively light trading day so if the liberal investors were there instead of playing with their Christmas presents, I'll bet they are the ones most easily spooked on the big board!
They're probably liberal investors
I'll just leave this right here.
I have never seen a major US political Party so totally invested in defeatism since the days of Nixon and Vietnam!!! It's hideous!!!
It's Conservative America's great relief valve!!!
Ok... You've got your's and I've got mine!!! Opinions are like bellybuttons...
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