Posted on 01/08/2008 2:52:49 PM PST by shrinkermd
The stock market suffered a big hit from an old two-headed monster.
Worries about bad mortgage bets and weak consumer spending -- the same problems that plagued the market throughout late 2007 -- intensified Tuesday and sent major indexes sharply lower. The Dow Jones Industrial Average plummeted 238.42 points, or 1.9%, to 12589.07, its lowest point in nearly nine months.
The Dow is down 5.1% in 2008's first five trading days -- a key period often considered an important harbinger for the market's fate the rest of the year. The blue-chip average has also fallen 11% from its early-October record, a decline that fits the traditional definition of a correction that removes speculative excess from a market.
One of the Dow's weakest components was AT&T, which slid 4.8% after its CEO said at a conference that the telecommunications giant is experiencing a slowdown in its consumer segment, including an increase in disconnections due to unpaid bills. The news came late in the day, adding downward momentum to a market already beset by fresh concerns about fallout from the credit crisis.
"Everything we've seen today just reinforces the fears people had," of a spillover effect from Wall Street's soured credit bets on the broader economy, said floor trader Ted Weisberg, of Seaport Securities, a New York stock brokerage. "We rolled over the calendar, but our problems came with us."
The S&P 500 fell 1.8%, or 25.99 points, to end at 1390.19. Both its consumer-related sectors veered from positive territory into the red following AT&T's comments. The technology-focused Nasdaq Composite Index was down 2.4%, or 58.95 points, at 2440.51 at the close.
(Excerpt) Read more at online.wsj.com ...
What changed today except perception................
Perception finally catching up to the fundamentals: Countrywide is dead meat.
Perception?
Retail season sucked and ATT warned re: profits. That is why the market tanked after lunch.
UCPIX up 5.5% today.
When the parking lot at Wal Mart is nearly empty mid afternoon, it tells a lot about the economy.
People are hunkering down. Worried about heating their homes and filling their gas tank.
And there are a lot of people out of work, not reflected in the “government’s statistics”.
A lot of money is being lost on wal Street.
It hurting me!!! I am way down 20% or more in two stks...
o_zarkman44: “A lot of money is being lost on Wall Street.”
A lot of opportunities to make money on Wall Street when this turns around. I just love bargain hunting, even though it’s pretty perilous right now.
Everything is Fine
You're all Chicken Littles
What goes up must come down
Uncle Benny will save us all, Reserve Banks are run by Geniuses
Go out and Shop
Whatdcha expect, we never promised a rose garden!
And remember without Fwee Twade and Good Ol' Mexican labor, things would be a lot worse
Really Worse
Don't complain, or we'll call you a DU troll and the VK's will come and eat you
/economic dogmafest
Shares of Countrywide were up 25 cents, or 1.15%, to $22.07 after rising as high as $24.46 earlier in the day. Shares of Bank of America rose 27 cents to $51.92.
"Bank of America's investment in Countrywide represents a vote of confidence and strengthens our balance sheet, enabling us to position Countrywide for future growth and success," Mozilo said in a statement late Wednesday.
Under the terms of the deal, Charlotte-based Bank of America acquired $2 billion in the form of non-voting, convertible preferred stock yielding 7.25% annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 a share, with certain restrictions.
Wonder how Ken Lewis & the BofA Board of Directors feel about that $2B now?
Nothing. But that's always the case. Prices move based on the psychology of those who buy and sell. Nothing else matters.
A nice thought if there is anything extra left to invest.
Although a market downturn may cause lower demand on oil and send those prices down.
Last January, I paid $1.73 for Gasoline in south East Missouri. A few weeks at that price would certainly be helpful for my economic situation.
I’m reminded of the words of Ben Bernanke, the yield curve is irrelevant, and subprime is contained.
If the DC Liberal morons get their way, the stock market will be toast for at least the next four years along with the economy that will be in the toilet bowl.
5% unemployment is recessionary? FULL employment is 4%!
People need to turn the MSM crapmongers off!
Lot of people said the same thing right before klintun was elected the first time. My stock portfolio went like gangbusters in the 90's The politicos don't control the economy as much as the corporation lobbyist.
this is nothing new, the volatility of the stock market is a constant and beautiful thing. hopefully the fed wont enact any stupid policies
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