Posted on 04/27/2009 1:11:18 PM PDT by SeekAndFind
NEW YORK (Reuters) - Stocks fell on Monday as concerns that a possible global flu outbreak could dampen optimism about the economy overshadowed a cost-cutting plan from General Motors Corp and gains in biotechnology stocks.
Wall Street slid in choppy trade as governments around the world moved to contain the spread of a possible swine flu outbreak, as a virus that is believed to have killed over 100 people in Mexico spread to the United States and Canada and may have reached as far as New Zealand.
The Amex Airline Index shed 11.2 percent as investors worried that travel would be hit be the flu fears. Among the laggards, UAL Corp (NasdaqGS:UAUA - News), the parent of United Airlines, gave up 15 percent at $5.47, while Continental Airlines Inc (NYSE:CAL - News) lost 14 percent to $11.37.
However, the worries were tempered as GM (NYSE:GM - News) shares surged 18 percent after the troubled automaker announced a restructuring that investors hoped would keep the company alive as it tries to secure government funding.
"There's no question that (the flu outbreak) is affecting some stocks, such as airlines and restaurants but it's clearly not a big enough issue to effect the outlook for the global economy," said Hugh Johnson, chief investment officer of Johnson Illington Advisors in Albany, New York.
"The question of what will happen to GM is an ongoing and substantial story. The message of the market is they may have done just exactly what they need to to break even."
The Dow Jones industrial average dropped 71.05 points,or 0.88 percent, to 8,005.24. The Standard & Poor's 500 Index dropped 9.78 points, or 1.13 percent, to 856.45. The Nasdaq Composite Index (Nasdaq:^IXIC - News) dropped 16.93 points, or 1.00 percent, to 1,677.36.
(Excerpt) Read more at finance.yahoo.com ...
Flu Vaccine companies on the other hand are having an OUTSTANDING DAY.
Just look at the volume of these 2 companies : NVAX and GNBT
Instead of the swine flu killing people, Obama wants to scare people to death with photo-op fly-bys.
FLU FEARS caused the market to drop? LMAO! Nice one, Reuters. I needed a good laugh.
Kind of silly. Too late to get out a vaccine for this epidemic.
Quite right. It takes about six months from start to finish to develop a flu vaccine. And by that time the swine flu will be history.
I want to be a business writer. At the end of the day, all you have to do is take the big story of the day and then say that Wall Street "is concerned" about it, and that's why the market fell, or "disregarded it", and that's why the market rose.
Never waste a good crisis, this is 0bama’s fault!!!
The swine flu will die down this spring and come back next winter,,that is what happened in other cases most particularly the 1918 flu.
I thought they could get a swine vaccine going much faster than six months,,new tech or something.
I bet that little flying incident had no impact on the market today either.
CajunGirl, they haven’t been able to cut down the production rate over the last thirty years that I am aware of.
They start early in the year and the vaccine isn’t broadly available until the September time frame, sometimes as late as October/November. And if something goes wrong with the batch (something you don’t find out until just before release), the corporation creating the vaccine, will not provide product that year.
About five years ago, we had an instance where half the needed supply for the nation failed it’s testing, and couldn’t be released.
It can get real ugly when hospitals, retirement centers, clinics, and public health departments go scrambling.
It may be too late to get vaccine for this ready by this fall. I don’t honestly know for sure.
I doubt the market is down due to the flu scare.
That's what I thought when that's how the local Fox affiliate reported it this morning . . . then I thought that fears of what Obama might use the flu for could well justify a market drop!
It is so absurd, but a good lie keeps on giving. Anything to protect the One.
lol yes but none the less they are blaming it on the GOP see here...
http://bluelori.blogspot.com/2009/04/who-has-raised-altert-to-4.html
I agree with your comments, and won’t be getting one either. I never do.
C’mon Barry. Give us more HOPE and CHANGE! He’s beginning to resemble the Bush administration in summer 2005.
This is typical NWO crisis garbage. My guess is there wont be anyone I know get the swine flu. But there will be lots of people I know hurt by the government’s response to it.
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.