Posted on 06/06/2008 1:29:43 PM PDT by shrinkermd
The stock market endured its deepest nosedive in more than 15 months Friday as the aspects of the U.S. economy most visible to Americans in their everyday lives appeared to be careening out of control.
Skyrocketing oil prices and a weak job market sent the Dow Jones Industrial Average plummeting 394.64 points, its biggest single-day drop since Feb. 27, 2007. The blue-chip indicator ended down 3.1%, at 12209.81, with all 30 of its blue-chip components posting losses.
Intraday Futures8 and Currencies9A potent blend of dollar weakness, speculation, bullish analyst comments, and geopolitical worries sent crude prices soaring. Ole Slorer, a shipping analyst at Morgan Stanley, said recent crude shipping trends suggested that a "short-term spike in oil prices" would lift crude futures to $150 a barrel by July 4. Growing tension between Israel and Iran added to worries over an interruption in supply.
Crude futures finished up $11.19, or 8.8%, at $138.54 on the New York Mercantile Exchange. The closing price represented an all-time high, and the daily swing more than doubled the previous session's record for the biggest move for oil in dollar terms in the 25-year history of trading on Nymex.
(Excerpt) Read more at online.wsj.com ...
Twitchy traders overacting once again. Could be a buying opportunity for those of us who are not prone to such emotional, knee-jerk reactions.
I know you are joking;however, the stock market discounts the future. I believe it is anticipating an Obama victory and is acting accordingly.
I love the way reporters make stuff up just to have a headline. What did Silver, Copper and Platinum do today while the oil commodity rise was due to the dollar's slump?
And the Democrats want to raise taxes and curtail commerce!! Hooray!!!!
you’re being sarcastic, but a summer and fall of news like this and that just might happen. I’ve been saying McCain wins, and I still think so, but if something doesn’t turn around on the economic front...I don’t know.
And before someone points to some economic report to prove that things aren’t so bad, try telling that to a person spending 50% more at the grocery store than they were six months ago. The only thing that matters is what the public thinks, and they couldn’t care less about whichever metric the eggheads are in love with this week.
All up as well.
Look Again.
http://www.nymex.com/pla_fut_cso.aspx
And the two that were up rose nowhere near that percentage.
When the dollar drops, it’s not just oil that goes up in price - it’s almost everything.
http://www.kitco.com/market/index.html
Spot markets were ALL UP!
Silver was up as well. So was copper. Corn is @ 6.40 a bushell, that’s 2x what it was about 2 years ago.
Why does the New York Mercantile Exchange show Platinum down?
What commodities rose percentages close to oil?
I’m not sure, but spot price was up.
No, nothing jumped as much as oil did, but when you factor in these artificial reports about $150, Isreal tough guy talk, and no denouncement from the President, the jitters that are there, artificial as they might be, are just going to keep the bulls raging.
I agree, the fundamentals should be that of direct or indirect replacement. If something moves 1% in price down, you’d expect something of similar store of value to go up by the equal inverse.
Supply is not an issue, demand keeps decreasing. I don’t get it, but at some point, it has to pop.
I saw today as an excellent selective buying opportunity. Only time will tell if I’m a financial wizard or a fool!
My point. Something besides the dollar value was the cause oil rocket climb today. But still they chose to use it in the headline.
Supply is not an issue
On this I greatly disagree. It is certainly not the only issue, but Non-OPEC producers are spending like crazy trying to increase production and correspondingly exploration.
I say it's the "Obama bounce." Like a dead cat.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.