STOCKS CRATER, DOW FALLS 208 POINTS: Here's What You Need To Know

Business Insider ^ | 5-31-2013 | Sam Ro

[blam]

STOCKS CRATER, DOW FALLS 208 POINTS: Here's What You Need To Know

Sam Ro
May 31, 2013, 4:00 PM

Things got really ugly during the last few minutes of the trading session.

First the scoreboard:

Dow: 15,115, -208.9 pts, -1.3%
S&P 500: 1,630, -23.6 pts, -1.4%
NASDAQ: 3,455, -35.3 pts, -1.0%

And now the top stories:

The April personal income and spending report was disappointing. Income was flat, which was worse than the modest 0.1% gain expected by economists. Spending unexpectedly fell by 0.2%. "Despite surging prices for homes and equities, consumer spending is contracting," said economic bear Lakshman Achuthan as he reiterated his recession call. "Quite simply, the wealth effect is rendered moot by languishing incomes."

"The 0.2% m/m decline in the nominal value of US monthly consumption in April is not quite as bad as is looks, since it partly reflects the drop back in gasoline prices," said Capital Economics' Paul Ashworth offering a bit of optimism. "Overall, a sobering report for those expecting GDP growth to accelerate sharply." But there was also some good news today. The Chicago PMI report surged to 58.7 in May from 49.0 last month. Economists were looking for a reading of 50.0. Consumer confidence jumped to 84.5 in May from 76.4 in April. Economists were looking for a reading of 83.7.

[blam]

DJIA Down 208.96

[blam]

The Hindenburg Omen Has Appeared

[fwdude]

I’ve been out of the market for awhile now. I don’t invest in hollow bubbles.

[Monty22002]

Are there any solid bubbles to even invest in now? If I had money, I honestly wouldn’t know what to do with it. I wish I had that problem though. obamanomics took care of that.

[RetiredTexasVet]

They just lowered the GDP from 2.5% to 2.4%, and remember that the 2.4% is the new inflated GDP (by 1.0% - 1.5% for art creations, etc. as determined by the Bureau of Lies & Statistics). I’m sure all the inside traders have unloaded their regular and bonus stocks by now. You know it’s bad because they normally push through a lot of dummy trades to push up the prices at the end of the month to inflate account manager fees and bonuses .... looks bad if they couldn’t do that.

[Aliska]

I think I should get out, suck up my losses, and stay in cash. Not going into pm.

[re_nortex]

Obama strikes again.

[CGASMIA68]

Not too many solid bubbles,dont cha know.

[Mad Dawgg]

OK I think the Market is held together with bailing wire and spit wads BUT a 200 Point drop in a 15K Market is not "cratering"...

Now if we get more such drops the next few days then we can start using such without risking hyperbole...

[MeneMeneTekelUpharsin]

I already know what I need to know. It’s all a lie.

[fwdude]

A little tip can fall a teetering giant.

[ken5050]

I don’t like the market..but there is another reason which adds to the Friday sell-off. It’s the start of summer, and traders like to take long, 3-4 day weekends in the Hamptons, and they don’t want to be LONG for 2-3 days..so you’ll see this more and more..as they close out positions..yes, you can in theory be just as connected and wired in sitting on the beach, but the group think makes them tend to be nervous about being away from their computers and screens for 2-3 days...and also, wars have a tendency to start on weekend in the Middle east...

[shadeaud]

So, who has been living in a cave the past 5 years. The market is not real.It’s held up by the Fed printing paper. Those in the know know when it’s time to get out and will in stages so as not to have the automatic shut down kick in. Watch the big banks and hedge funds that are experienced and truly trusted. Exchange your paper into stocks that are winners during depressed times(booze, entertainment and fosil fuels). Stay thirsty my friend

[what's up]

Sell in May and go away.

However, if the Obama scandals keep rolling, I think the summer will be a good one for the market.

[clintonh8r]

Last chance to “sell in May and go away.”

[I want the USA back]

What happened to all that crowing and singing when the DOW hit “15,000”? (a number, that when adjusted for inflation, was meaningless)

[clintonh8r]

D’oh!

[ez]

They are priming the pump but there ain’t no water down there.

[TomServo]

Here's What You Need To Know..

Crap happens.

[Mad Dawgg]

"So, who has been living in a cave the past 5 years. The market is not real.It’s held up by the Fed printing paper."

Did you read ALL of my post?

15K with a 200 pt drop isn't even 2%

Not a crater... and, like I said the market is held together with bailing wire and spit wads BUT a 200 pt drop is not the end of the world!

Now you get a 5% drop in a day then we can start using "cratering"...