Posted on 10/11/2018 11:57:57 AM PDT by BradtotheBone
Stocks fell in volatile trading Thursday, a day after the major indexes suffered steep losses sparked by higher rates and a sell-off in tech shares.
The Dow Jones Industrial Average traded 650 points lower, bringing its two-day losses to more than 1,400 points. The S&P 500 dropped 2.1 percent and was on pace for a six-day losing streak. The broad index also broke below its 200-day moving average for the first time since May. The Nasdaq Composite pulled back 1.5 percent and entered correction territory.
The major indexes fell after some of the major tech names failed to recover from steep losses in the previous session. Netflix fell more than 1.5 percent after briefly trading higher. Apple also declined 0.8 percent, erasing earlier gains.
Tech shares fell more than 4.5 percent on Wednesday, marking their worst day since 2011. The sell-off led to the Dow sinking more than 800 points and the S&P 500 dropping more than 3 percent. It was also the 28th time since 2011 the S&P 500 posted a more than 2 percent decline, according to data from Birinyi Associates.
"It's a momentum correction, not a portfolio correction," said Joe Terranova, chief market strategist at Virtus Investment Partners. "While we have a bias to believe 2008 could happen again, I don't think this is the case."
"Less is more in this environment," Terranova added. "I think you need to be an observer of the guidance you get in earnings."
Stocks tried to rebound earlier in the day after the release of weaker-than-expected inflation data. The U.S. government said the consumer price index rose 0.1 percent in September, well below the expected gain of 0.2 percent.
(Excerpt) Read more at cnbc.com ...
So if a quarter-percent increase last month causes a 1600 point drop this month, then why didn't the quarter-percent increase in June crash the Dow in July?
Looks like ~50% of the Dow is NOT “Industrials”.
The index is fine for short period analysis, but it is so manipulated over the decades [replacement of companies] that it is a fallacious construct.
Non-linear effects...
Yup, Soros.
Hmmm, AAPL was up a touch today...
Bastard Duets are rooting for a crash.
“The Fed has been a little too aggressive in their projections of rate hikes in my opinion. They seemed a bit too anxious to normalize rates. They should have been more measured in their comments.”
They have been doing it NOT on the traditional reason, inflation, but for what I think is against the “national interest” but purely their own institutional self-interest as regards the unloading of the porfolio they built up as part of their quantitative easing measures post-2008.
They are already at the point of about to burst what I think is another real estate bubble that they helped create. There was warnings when they headed down their quantitative easing measures that getting out of them could wind up sending them and the economy in a damned if they do, damned if they don’t position.
Duers.
It’s going to drop another 1,000 points between today and tomorrow. Guaranteed.
No matter what, at least Pickles isn’t in the position to take those profits.
“The communists Democrats, who control the Feds, have crashed the market with rising interest rates.”
It’s rather too late to swing the election.
Houses under construction have to be completed. That takes many weeks in most cases.
Renovation contracts also have to get finished.
It might have an impact in Michigan, since assembly lines can get slowed quickly. Democrat-run Federal Reserve hijinks might be made into Republican victory.
...... I suspect the market is being manipulated to dump just before the Midterms so Trump can no longer use the market and thus .... the economy as an example of his success.
Excellent comments. Thanks for the reply.
They are unwinding their massive balance sheet. What is it at now, something on the order of $4.5 trillion?
Maybe they should take "industrial" out of it and just call it Dow Jones average.
Taking the “Industrial” out of the title would go a long way to making me happy.
Obviously it was way easier back in the day to track just 40 companies. Today, it seem way too arbitrary. As the times have changed, the index should cover a higher number of enterprises. [Why stick with 40? - makes no sense]
Liberals are happy when the economy tanks. Would they short it to beat Trump?
Don’t count it out. They’re desperate and this is all they have left.
The day finished down 546. Only three gainers yesterday, six today: NEM, EGO (both precious metals and both on yesterday’s list), TWLO, BCC, MOH and X. Plus, of course, the Bear ETFs.
Well l guess safe to MSM will talk about the economy now. The Feds are behind this crap count on it. Trump will learn from this.
My gut says down another 600 tomorrow morning, followed by a reversal to the upside. But I won’t bet on it. Not guaranteed.
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