Posted on 04/27/2010 11:17:01 AM PDT by SeattleBruce
NEW YORK (MarketWatch) -- U.S. stocks tumbled Tuesday, sending the Standard & Poor's 500 index back below the key 1200 level following credit-rating downgrades from S&P on Greece and Portugal.
The Dow Jones Industrial Average dropped 128 points, or 1.2%, at 11079 in recent trading. Alcoa was the measure's worst performer with a drop of 3.2%. Caterpillar, which is particularly sensitive to the global economy, was also weak with a drop of 3.1%. Chevron was off 1.8% as crude-oil futures fell.
The declines came as the dollar strengthened against the euro after S&P lowered its sovereign-issuer credit ratings on Portugal and Greece. In downgrading Portugal, S&P said it expects the Portuguese government "could struggle to stabilize its relatively high debt ratio over the outlook horizon until 2013." The ratings agency's cut to Greece "results from our updated assessment of the political, economic, and budgetary challenges that the Greek government faces in its efforts to put the public debt burden onto a sustained downward trajectory," S&P said.
(Excerpt) Read more at marketwatch.com ...
Anyone who believes S&P or Moody is pretty lame.
“Anyone who believes S&P or Moody is pretty lame.”
But the debt crisis in Europe - you think that’s real, correct? Or debt levels here?
Well, true. They’re way late to the game.
Still, there are a lot of funds who have to sell the Greek debt now, because they’re not allowed to own junk paper. So while late, S&P’s announcement has ramifications in the market.
Sure. I just do not think the rating agencies are nuetural. The government Plunge Protection Team will have to work hard this afternoon to get the market back up.
S&P and Moody’s are known liars.
I just flipped CNBC but they have that ridiculous hearing on.
“American International Group tumbled 8.9% after a Wall Street stock analyst said the company has no net earnings per share in the conventional sense, and also set a bearish $6 target price for the stock.”
Shocking...’no net earnings’. Hmmm...was our bailout of AIG a good use of taxpayer $$? Part of the ‘too big to fail’ mantra...:(
They haven’t cut the US credit rating yet??
Its junk but the agencies can’t admit it.
Nothing to worry about....Der Leader pays no attention to the daily movement in the stock market....
Hey, they offer the best ratings money can buy. :)
AAAA no doubt.
Interesting to look at commodities...
Oil down slightly (expectations for continued recession...)
Gold steady
BUT, copper, after months of rambling and slight up trend, now tumbling... -16 cents
Oil down slightly (expectations for continued recession...)
Gold steady
BUT, copper, after months of rambling and slight up trend, now tumbling... -16 cents
Yeah, copper is a critical commodity if you think you are in a recovering market. Noticed both FCX and VALE are both down 5%, so there is no currency angle to it, just nobody wants copper all of a sudden. Given the Greek thingy and strengthing dollar you would expect VALE to be down more than FCX. Strange.
In other words, the traders don't think there is going to be great demand for copper pipe in the immediate future.
Or is there another big use of copper I'm not thinking of?
". . . in the conventional sense, . . . " Huh? I thought earnings per share just had one meaning, not varying by "conventional" and -- I guess -- "unconventional"! Does this mean something I'm not sophisticated enough to get?
I’m not certain copper is the reliable indicator it used to be. Five years or so ago, aggressive Chinese stockpiling of copper (among other commodities) drove demand for copper higher than it would normally have been given the business cycle. That (one of the largest players in the market behaving differently than traditional buyers of copper) and the boom in construction fueled by the housing bubble seemed to decouple the price of copper from the business cycle.
I’m sure things have changed in the last couple years, but I’m not sure they’ve changed in such a way as to return the copper market to its traditional behavior. Could be something to look into.
WooHoo!
It was 14.94P% this morning!
.....building is correct.....
.....but the biggy is "wire".....
.....building and manufacturing.....
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