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 ...
I suspect that these traders privately buy short then make the market drop. They get rich, we suffer.
Is this being organized by soros out of anger over Kavanaugh’s confirmation?
soros got rich through currency manipulation, and his riches came from other people who lost money.
Which is why one shouldn’t focus just on the DJIA. There’s the S&P 500, the NASDAQ, the Dow Transports, the Russell 2000, each of which measure different sectors of the market. And remember indexes are arbitrary measuring tools which only reflect those companies included.
Here’s an interesting history on just how the DJIA was created and why.
https://www.investopedia.com/articles/financial-theory/08/charles-dow.asp
In 1882, Charles Dow and a fellow reporter, Edward Jones, decided to start their own company, Dow, Jones & Company. Their first publication, in 1883, was called the Customers’ Afternoon Letter. It was a two-page summary of the day’s financial news, including the movement of certain stock prices, laid out in an easy-to-understand format. At a time when many reporters would accept bribes to pump up a stock in their articles, Dow established a reputation for unbiased analysis. More importantly, he wrote analysis that the majority of people could understand.
The precursors to the Dow Jones Industrial Average appeared in this small newsletter as averages of a few major stocks in the shipping and rail industry. Dow wanted to include a market average to give his readership an idea of whether the market was advancing or retreating, thus providing some clarity and an overall picture that otherwise could easily be lost by focusing on the ups and downs of a multitude of stocks. By 1896, the first DJIA was calculated using the top 12 stocks in the market. The initial calculation was a simple sum and divide that yielded 40.94 as the first published average.
I agree. Keeping it to 40 companies does not seem realistic today with all the diversity in our economy. Back in the 1920s, nobody could imagine that gigantic corporations would emerge from such things as streaming video (Netflix), fast food (Chik-Fil-A), home delivery (Amazon), and car rides (Uber), just to name a few.
The stock market is the only place I know of where everyone runs out of the building when they have a sale.
They’re crashing it a bit so they can blame it on ,you guessed it ,Trump, before the mid terms ,LOL
Oh well.
The stock market is not the economy. It’s all wrapped up with each other, but he stock market has been a mess for years.
Feds raised interest rate...........
Thanks. Sobering piece, especially the acceleration in the pace of unwinding. This could get pretty destructive. Powell needs to say/do something to calm the markets.
Given how many changes out of companies the DJIA has made (and all of their mathematical machinations accompanying those changes), there would seem to be no reason to not change the number of companies tracked.
It would be interesting to track the fraction of the stock market value represented by the DJIA vs. the total US stock market value over time.
Invest in ‘TAXES’.... sure to go higher
Bit of a lag to the last couple of days. Especially since the Fed said they were on the warpath of regular increments into the near future.
The Fed made a jump a while back that has driven me to sell appreciated stocks to pay down the loan over the last few months..
I’ve already seen a few such articles.
The S&P 500 index is a more accurate depiction of the overall market.
https://us.spindices.com/indices/equity/sp-500
The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities. There is over USD 9.9 trillion indexed or benchmarked to the index, with indexed assets comprising approximately USD 3.4 trillion of this total. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.
Rate hikes are just what this senior has been waiting for. Market scares us; we want those safe CD rates. Sorry, youngins....
I'm curious how much it would cost to accomplish this manipulation.
The Russian scam didn’t work. They find themselves unable to impeach Trump. The economy is roaring. This is nothing but pulling the plug on the economy in an attempt to hurt Trump. They would throw us into a Great Depression solely to remove Trump, and teach all of us a lesson for voting for him.
I am so waiting for the 20% - 30% Bear Market that will occur someday. I’m sitting on dry powder I’ve been accumulating, and want to make my last killing.
The Communist Left knows no limit on what they will try to achieve POWER!!!!
Here’s the reduction of the argument/question:
If you don’t keep the same companies over time, why keep the number 40?
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.