Dow plunges 400 points as Europe fears return [11:15 AM ET]

Cnn Money ^ | August 10, 2011 | By Hibah Yousuf

[AAABEST]

NEW YORK (CNNMoney) -- U.S. stocks fell sharply in early trading Wednesday, following the previous session's huge rally, as fears about Europe's ongoing debt crisis resurfaced.

The Dow Jones industrial average (INDU) dropped 325 points, or 2.9%. The index fell as much as 446 points, which exceeded the gain in Tuesday's massive advance.

[SNIP]

On Wednesday, shares of French bank Societe Generale, or SocGen, tumbled almost 20% on the Paris stock exchange amid speculation that France may be first to face a rating cut.

[SNIP]

The major indexes have been swinging between massive gains and losses during trading, and ending sessions either overwhelming higher or lower.

During the last month, stocks have lost almost 13%.

The market's yo-yo action tends to spoil confidence among investors, and in turn, that lack of faith fuels additional volatility

[hattend]

Is Obama going to give a speech soon?

[P.O.E.]

“Europe” fears.

And the Tea Party, and the Republicans, and the Japanese Tsunami, and the Middle East.

But Obama? Nahhh.

[AnAmericanAbroad]

FNC is useless; I gave up on them the last time I was back home in the States.

MWGN, that’s what I call them.

Missing White Girl Network.

Just like we all used to call the History Channel the “Hitler Channel” (I like History Channel, by the way).

[Boardwalk]

0bama is busy on his prayer rug and he has the big muzzie dinner tonight so get off his back!

[Scott from the Left Coast]

European fears??? What about the imbeciles in the White House and Treasury and the Fed?

[Dilbert San Diego]

Obama said we shouldn’t pay attention to the daily gyrations of the stock market. So I’m sure he is not paying attention.

Wow, down 400 points has wiped out yesterday’s gain. Of course yesterday’s gain was just a partial rebound from the 600+ point loss the day before, and the 500+ point loss last Friday.

[Scott from the Left Coast]

Calling the Plunge Protection Team ... please pick up at the white courtesy phone!

Sorry, man, but they're really frickin' hung over after their congratulatory party last night.

[Deo volente]

There’s a little buying, then another leg down.

Down 459 right now. Who knows where it will close?

[PSYCHO-FREEP]

The sell off was due to the threat of QE-3. Which is now a reality. They are buying back Gold and commodities in large sections.

My holdings are getting stronger in those categories. Oddly enough, I am in fairly good shape. Especially my individual Oil well stocks. They are all up 10%.

[jpsb]

re FNC useless, yup, except for Megan Kelly and Gretta it is useless. FBN is much better, they (FBN) actually have reporters the report news instead of 24/7 talking heads that know absolutely nothing. CNBC is not bad either (prior to 5pm) if business coverage is your thing.

[Thunder90]

Geitner is going to do QE3 later this year. The Euros and Obama will demand it.

[AAABEST]

Home prices take another dip

Global markets getting hammered

Sarkozy abandons holiday as downgrade fears rock France

Gold hits record highs yet again

[444Flyer]

But...but...but, the Fed guaranteed and Sham Wowed low interest rates until after the 2012 election. Where is today's dead cat bounce? The unemployed will be going right out getting new credit cards to charge on and buying new homes to live in. US debt increases exponentially and the dollar is dropping. Happy days are here again! Woo Hoo!/s

[Unrepentant VN Vet]

U.S. stocks fell sharply in early trading Wednesday, following the previous session's huge rally.....

Not to be too much of a cynic, but I gotta ask exactly how much my great-grandkids are going to have to pay for that "huge rally".

GRRRRRRRRR

[Bookwoman]

There will be up days when some people will get back in - possibly covering shorts. Because yesterday the market was up, today some folks who procrastinated about getting out dumped their stock because they know the market is going to go down and thought they saw a chance. But that didn’t last long. People are starting to run for the exits. I think that there have been people/groups propping us up for a while because the high market valuation just doesn’t make sense. They are pulling out the rug now. Just part of the attack against our way of life.

[Elendur]

The ups and downs are making my head spin! What is so different between yesterday and today?
///
in between the two, was the European stock market.
and there are rumors that the LARGEST french bank could go under, mainly because of their loans to Greece.
their stock just went down about 17%.

so this would have some effect on the USA markets today.

[wesbed]

On FOX, this stock market thing is ‘so last week.’

[AceMineral]

Up 700 points.

[5thGenTexan]

I totally missed this one, so I am riding it out. I did pretty good in 2008 - got out early in the downslide and got in just as it started back up.

[FourPeas]

Only if Barry desires that it tank even futher and faster.