NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

A big earnings miss from Caterpillar Friday wasn't enough to derail a rally that pushed the U.S. stock market up 2 percent for the week.

Caterpillar Inc. fell nearly 6 percent after the heavy equipment maker earned less than analysts were expecting last quarter, partly because of the earthquake and tsunami disaster in Japan. The company is seen as a bellwether for the global economy because it sells construction and mining machinery all over the world.

The weaker results from Caterpillar and a continuing deadlock over raising the U.S. borrowing limit capped the stock market's gains. Overseas markets rose after European leaders reached a deal late Thursday aimed at containing the region's debt crisis.

The Dow Jones industrial average fell 43.25 points, or 0.3 percent, to 12,681.16. Even with the decline, the Dow gained 1.6 percent for the week. It has finished three out of the last four weeks higher than where it started.

The broader Standard & Poor's 500 index gained 1.22, or 0.1 percent, to 1,345.02. It finished the week with a gain of 2.2 percent.

The NYSE DOW NYSE DOW closed LOWER -43.25 points -0.34% on Friday July 22
Sym .......Last .......Change..........
Dow 12,681.16 -43.25 -0.34%
Nasdaq 2,858.83 +24.40 +0.86%
S&P 500 1,345.02 +1.22 +0.09%
30-yr Bond 4.2600% -0.0550

NYSE Volume 3,543,403,500 (prior 4,903,190,000)
Nasdaq Volume 1,674,379,250 (prior 2,314,949,750)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,935.02 +35.13 +0.60%
DAX 7,326.39 +36.25 +0.50%
CAC 40 3,842.70 +25.95 +0.68%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,674.10 +47.90 +1.04%
Shanghai Comp 2,770.79 +4.90 +0.18%
Taiwan We... 8,765.32 +48.18 +0.55%
Nikkei 225 10,132.11 +121.72 +1.22%
Hang Seng 22,444.80 +457.51 +2.08%
Straits Times 3,182.95 +44.44 +1.42%

http://finance.yahoo.com/news/Tech-earnings-help-stocks-end-apf-4027023988.html?x=0

Tech earnings help stocks end week with solid gain

US stock market finishes week with 2 percent gain on strong earnings from Microsoft, others

Daniel Wagner and David K. Randall, AP Business Writers, On Friday July 22, 2011, 5:01 pm EDT

A big earnings miss from Caterpillar Friday wasn't enough to derail a rally that pushed the U.S. stock market up 2 percent for the week.

Caterpillar Inc. fell nearly 6 percent after the heavy equipment maker earned less than analysts were expecting last quarter, partly because of the earthquake and tsunami disaster in Japan. The company is seen as a bellwether for the global economy because it sells construction and mining machinery all over the world.

The weaker results from Caterpillar and a continuing deadlock over raising the U.S. borrowing limit capped the stock market's gains. Overseas markets rose after European leaders reached a deal late Thursday aimed at containing the region's debt crisis.

The Dow Jones industrial average fell 43.25 points, or 0.3 percent, to 12,681.16. Even with the decline, the Dow gained 1.6 percent for the week. It has finished three out of the last four weeks higher than where it started.

The broader Standard & Poor's 500 index gained 1.22, or 0.1 percent, to 1,345.02. It finished the week with a gain of 2.2 percent.

Energy, technology and consumer discretionary companies were the only three of the 10 industries tracked by the S&P 500 that rose. That was still enough to push the broad market index higher.

Consumer discretionary companies include retailers like Amazon Inc. and restaurant chains like McDonalds Corp. McDonald's rose 2 percent, the most of any stock in the Dow average, after its income and revenue came in higher than analysts were expecting due to strong sales in Europe.

Technology stocks rose broadly after Advanced Micro Devices Inc. reported strong second-quarter earnings and said its new computer graphics chip was selling well. The Nasdaq composite index rose 24.40 points, or 0.9 percent, to 2,858.83.

AMD jumped 19 percent. Flash memory card maker SanDisk Corp. rose 10 percent after its earnings rose sharply. Microsoft Corp. gained 1.6 percent after beating analyst's income estimates.

Oil services company Schlumberger Ltd. rose 3 percent after its profits increased on a pickup in drilling in North America.

Traders kept close watch on negotiations in Washington over a deal to raise the nation's debt ceiling ahead of an Aug. 2 deadline. The impasse has overshadowed an agreement in Europe Thursday to give Greece a second financial lifeline and broaden the powers of a regional bailout fund.

Concerns are spreading that the U.S. debt ceiling won't be raised before the deadline, said Brian Gendreau, market strategist for Cetera Financial Group. "But the background is a growing economy and fairly strong earnings news."

Strong earnings from Apple Inc., Coca-Cola Co. and IBM Corp. helped send stocks higher this week. The Dow gained 202 points on Tuesday, its biggest one-day jump of the year, after President Obama backed a proposal by six senators that would cut the country's debt by $3.7 trillion over the next decade and raise the nation's debt ceiling.

Rising and falling shares were about even on the New York Stock Exchange. Volume was lighter than average at 3.3 billion shares.

7643

 

[bigdog]

Source: http://finance.yahoo.com

The debt showdown in Washington is rattling the stock market again.

Stocks fell Monday after Republican and Democratic leaders offered competing proposals to avoid a catastrophic default on the U.S. government's debt.

Lawmakers hoped to reach a compromise on raising the country's borrowing limit late Sunday, but those talks stalled. President Barack Obama wants to raise revenues by letting tax cuts for wealthy Americans expire. Republicans have pushed for more spending cuts and have rejected higher taxes.

If an agreement is not reached by Aug. 2, the U.S. won't have enough cash to pay all its bills. That could have a huge impact on financial markets. The U.S. would likely lose its coveted triple-A credit rating. Interest rates would rise for millions of consumers. And stocks could fall the way they did during the 2008 financial crisis, analysts say.

Most traders expect the White House and Capitol Hill to come up with a last-minute deal. Yet there are still uncertainties about higher taxes or changes to government spending that could affect corporate profits. Investors also worry that the government may only come up with a short-term fix that could still trigger a credit rating downgrade.

"We're thinking this is going to be resolved," said Rob Lutts, president and chief investment officer of Cabot Money Management. "The question: Is it resolved from a standpoint of a long-term solution or a stop-gap measure?"

The Dow Jones industrial average fell 88.36 points, or 0.7 percent, to close at 12,592.80. The Dow had been down as many as 145 points earlier.

The Standard & Poor's 500 index fell 7.59, or 0.6 percent, to 1,337.43. The Nasdaq composite index fell 16.03, or 0.6 percent, to 2,842.80.

The NYSE DOW NYSE DOW closed LOWER -88.36 points -0.70% on Monday July 25
Sym .......Last .......Change..........
Dow 12,592.80 -88.36 -0.70%
Nasdaq 2,842.80 -16.03 -0.56%
S&P 500 1,337.43 -7.59 -0.56%
30-yr Bond 4.3240% +0.0640

NYSE Volume 3,608,772,500 (prior 3,543,403,500)
Nasdaq Volume 1,634,068,750 (prior 1,674,379,250)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,925.26 -9.76 -0.16%
DAX 7,344.54 +18.15 +0.25%
CAC 40 3,812.97 -29.73 -0.77%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,603.80 -70.30 -1.50%
Shanghai Comp 2,688.75 -82.04 -2.96%
Taiwan We... 8,683.51 -81.81 -0.93%
Nikkei 225 10,050.01 -82.10 -0.81%
Hang Seng 22,293.29 -151.51 -0.68%
Straits Times 3,170.09 -12.86 -0.40%

http://finance.yahoo.com/news/Impasse-over-US-debt-limit-apf-1503618579.html?x=0

Impasse over US debt limit sends stocks lower

Stocks slump after lawmakers fail to agree on a plan to raise the US debt limit

Chip Cutter, AP Business Writer, On Monday July 25, 2011, 5:42 pm EDT

NEW YORK (AP) -- The debt showdown in Washington is rattling the stock market again.

Stocks fell Monday after Republican and Democratic leaders offered competing proposals to avoid a catastrophic default on the U.S. government's debt.

Lawmakers hoped to reach a compromise on raising the country's borrowing limit late Sunday, but those talks stalled. President Barack Obama wants to raise revenues by letting tax cuts for wealthy Americans expire. Republicans have pushed for more spending cuts and have rejected higher taxes.

If an agreement is not reached by Aug. 2, the U.S. won't have enough cash to pay all its bills. That could have a huge impact on financial markets. The U.S. would likely lose its coveted triple-A credit rating. Interest rates would rise for millions of consumers. And stocks could fall the way they did during the 2008 financial crisis, analysts say.

Most traders expect the White House and Capitol Hill to come up with a last-minute deal. Yet there are still uncertainties about higher taxes or changes to government spending that could affect corporate profits. Investors also worry that the government may only come up with a short-term fix that could still trigger a credit rating downgrade.

"We're thinking this is going to be resolved," said Rob Lutts, president and chief investment officer of Cabot Money Management. "The question: Is it resolved from a standpoint of a long-term solution or a stop-gap measure?"

The Dow Jones industrial average fell 88.36 points, or 0.7 percent, to close at 12,592.80. The Dow had been down as many as 145 points earlier.

The Standard & Poor's 500 index fell 7.59, or 0.6 percent, to 1,337.43. The Nasdaq composite index fell 16.03, or 0.6 percent, to 2,842.80.

Stock trading has varied widely in July because of concerns over debt problems in the U.S. and Europe. Prior to Monday, the Dow had alternated between gains and losses over the previous nine days. The VIX, a measure of volatility in U.S. stock prices, has risen 16 percent in July.

Many investors are reluctant to buy stocks because of concerns over the budget impasse in Washington. Trading volume, or the number of shares bought and sold on a given day, has fallen 22 percent in July on the New York Stock Exchange compared with the same month a year ago, according to FactSet. If that continues, July will have the lowest average daily volume since December 2007.

Some investors have turned to gold and other precious metals as a place to park money while the U.S. and European debt problems get sorted out. Gold rose $10.70 to $1,612.20 an ounce Monday, while silver rose 24 cents to $40.36 an ounce. Gold has risen 14 percent this year, while silver is up 31 percent.

Even as debt troubles continue in the U.S. and Europe, U.S. companies have been reporting higher profits. David Kelly, chief market strategist at J.P. Morgan Funds, wrote in a note to clients that the per-share earnings of companies in the S&P 500 index are expected to rise to a record in the second quarter. If that happens, it would surpass the previous record set in the second quarter of 2007.

"Corporate America has done very well," said Randy Bateman, chief investment officer at Huntington Asset Advisors. "People are looking at these earnings as good indications that there's value in stocks."

Apple Inc. briefly rose to $400 Monday, about a week after the company reported record earnings and revenue on the popularity of its iPhone and iPad. It closed up about 1 percent at $398.50.

After the market closed, Netflix Inc.'s stock fell 8 percent as the DVD rental company issued a third-quarter revenue forecast that was below analysts' estimates. Netflix is bracing for its subscriber growth to slow after it raised prices by as much as 60 percent earlier this month.

E-Trade Financial Corp. rose 6 percent, the most of any company in the S&P 500, after The Wall Street Journal reported that larger rival TD Ameritrade is considering a bid for the company. E-Trade's largest shareholder also called on E-Trade to hold a special meeting to consider selling the company.

Lorillard Inc. fell 4 percent. The maker of Newport cigarettes cautioned that it may not be able to sustain its strong earnings growth in the second half of the year.

Tenet Healthcare Corp. fell 4 percent after earnings at its competitor, the hospital chain HCA Inc., were far weaker than analysts expected as patients had fewer costly surgical procedures. HCA fell 19 percent.

Kimberly-Clark fell 2 percent after the maker of Kleenex tissues and Huggies diapers said its profit fell 18 percent because of higher prices for raw materials and a higher tax rate.

BlackBerry maker Research In Motion Ltd. fell 4 percent after the company said it would eliminate 2,000 jobs, or about 10 percent of its work force. The company has had several product delays and is facing tough competition from Apple's Inc.'s iPhone and smartphones that used Google Inc.'s Android operating system.

About four stocks fell for every one that rose on the New York Stock Exchange. Volume was relatively light at 3.3 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

A White House threat to veto legislation that would avert a debt default pushed stocks lower Tuesday.

Major indexes were already down for the day when the White House said it would object to a Republican plan in the House of Representatives that calls for raising the debt limit by $1 trillion. The plan would require the debt issue to be voted on again next year, something President Barack Obama does not want.

The stalemate over raising the country's borrowing limit has rattled investors. If an agreement is not reached by Aug. 2, the U.S. won't have enough cash to pay all its bills and could default on its debt.

Analysts say a U.S. default would have a devastating effect on financial markets. The U.S. would likely lose its triple-A credit rating, causing interest rates to soar. Stocks could plunge.

Paul Zemsky, chief investment officer of multi-asset strategies at ING Investment Management, said a default could also cause Americans to lose confidence in the economy, causing them to put off major purchases such as buying cars and homes.

"Anything that shakes confidence right now is just bad for the economy," Zemsky said. "And this is just a big confidence-shaker."

The Dow Jones industrial average fell 91.50 points, or 0.7 percent, to 12,501.30. The Dow was already down 40 points in afternoon trading and lost another 50 after the White House threatened to veto the House legislation. It was the Dow's third straight day of losses.

The Standard & Poor's 500 index fell 5.49 points, or 0.4 percent, to 1,331.94. Eight of the 10 company groups that make up the index fell. Only the technology and telecommunications sectors rose.

The Nasdaq composite fell 2.84, or 0.1 percent, to 2,839.96. Technology companies rose after Broadcom Corp. raised its revenue forecast for the third quarter on improving demand for its chips. Broadcom rose 9.4 percent, and rivals Advanced Micro Devices Inc. and Texas Instruments Inc. each edged up less than 1 percent.

The NYSE DOW NYSE DOW closed LOWER -91.50 points -0.73% on Tuesday July 26
Sym .......Last .......Change..........
Dow 12,501.30 -91.50 -0.73%
Nasdaq 2,839.96 -2.84 -0.10%
S&P 500 1,331.94 -5.49 -0.41%
30-yr Bond 4.2770% -0.0470

NYSE Volume 4,048,163,000 (prior 3,608,772,500)
Nasdaq Volume 1,759,016,375 (prior 1,634,068,750)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,929.73 +4.47 +0.08%
DAX 7,349.45 +4.91 +0.07% CAC 40 3,787.88 -25.09 -0.66%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,646.30 +42.50 +0.92%
Shanghai Comp 2,703.03 +14.28 +0.53%
Taiwan We... 8,794.24 +110.73 +1.28%
Nikkei 225 10,097.72 +47.71 +0.47%
Hang Seng 22,572.08 +278.79 +1.25%
Straits Times 3,186.57 +15.02 +0.47%

http://finance.yahoo.com/news/White-House-veto-threat-on-apf-1916437841.html?x=0

White House veto threat on debt sends stocks lower

Stocks fall as White House threatens to veto debt-limit legislation; 3M pushes Dow lower

Chip Cutter, AP Business Writer, On Tuesday July 26, 2011, 5:10 pm EDT

NEW YORK (AP) -- A White House threat to veto legislation that would avert a debt default pushed stocks lower Tuesday.

Major indexes were already down for the day when the White House said it would object to a Republican plan in the House of Representatives that calls for raising the debt limit by $1 trillion. The plan would require the debt issue to be voted on again next year, something President Barack Obama does not want.

The stalemate over raising the country's borrowing limit has rattled investors. If an agreement is not reached by Aug. 2, the U.S. won't have enough cash to pay all its bills and could default on its debt.

Analysts say a U.S. default would have a devastating effect on financial markets. The U.S. would likely lose its triple-A credit rating, causing interest rates to soar. Stocks could plunge.

Paul Zemsky, chief investment officer of multi-asset strategies at ING Investment Management, said a default could also cause Americans to lose confidence in the economy, causing them to put off major purchases such as buying cars and homes.

"Anything that shakes confidence right now is just bad for the economy," Zemsky said. "And this is just a big confidence-shaker."

The Dow Jones industrial average fell 91.50 points, or 0.7 percent, to 12,501.30. The Dow was already down 40 points in afternoon trading and lost another 50 after the White House threatened to veto the House legislation. It was the Dow's third straight day of losses.

The Standard & Poor's 500 index fell 5.49 points, or 0.4 percent, to 1,331.94. Eight of the 10 company groups that make up the index fell. Only the technology and telecommunications sectors rose.

The Nasdaq composite fell 2.84, or 0.1 percent, to 2,839.96. Technology companies rose after Broadcom Corp. raised its revenue forecast for the third quarter on improving demand for its chips. Broadcom rose 9.4 percent, and rivals Advanced Micro Devices Inc. and Texas Instruments Inc. each edged up less than 1 percent.

Amazon.com Inc. rose 6 percent in after-hours trading after the online retailer reported that its revenue jumped 51 percent. Its earnings and revenue were far higher than analysts were anticipating.

Strong earnings from Apple Inc., Microsoft Corp. and other major technology companies have made those stocks the market's best performers since the market hit a low in mid-June. The Nasdaq is up 8.2 percent since June 15, while the Dow is up 5.4 percent and the S&P 500 is up 5.6 percent.

Almost half of the Dow's decline came from 3M Co. The stock fell 5.4 percent, the most of the 30 companies that make up the Dow average. The industrial giant, which makes Scotch tape, medical equipment and many other products, said the disaster in Japan and sinking demand for LCD televisions hurt its results. The company makes a kind of film that is used in producing the flat-screen TVs. Since it makes so many kinds of products, investors often see 3M's results as an indicator of how the whole U.S. manufacturing industry is doing.

UPS Inc., the world's largest package delivery company, fell 3.3 percent after warning that the "uneven economic environment" in the U.S. could affect its results. Its main competitor, FedEx Corp., fell about 1 percent.

United States Steel Corp. also said it was seeing uneven economic conditions. The stock fell 8.3 percent after the company predicted that its earnings could fall in the third quarter.

AK Steel Holding Corp. fell 17.5 percent, the most of any company in the Standard & Poor's 500 index, after the company said it expects shipments to decline in the third quarter because of higher costs for raw materials.

Netflix Inc. fell 5.2 percent. The DVD rental and video streaming company's sales missed analysts' expectations late Monday. The company also said recent price changes could discourage some potential customers from subscribing.

About two stocks fell for every one that rose on the New York Stock Exchange. Volume was light at 3.7 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks plunged Wednesday as the U.S. edged closer to defaulting on its debt and the economy showed more signs of deteriorating. Major indexes gave up all of their gains for the month.

The Dow Jones industrial average fell 198.75 points, or 1.6 percent, to 12,302.55, its biggest one-day drop since early June. It has fallen for four days straight.

The S&P 500 fell 27.05 points, or 2 percent, to 1,304.89. The technology-focused Nasdaq composite index fell 75.17 points, or 2.6 percent, to 2,764.79, its worst day in five months.

The Dow is headed for its worst weekly decline in nearly a year and is now 4 percent below the 2011 high it reached on April 29. The S&P, which serves as a benchmark for most mutual funds, is also down 4 percent from its recent peak.

"As hours pass and the uncertainty builds, I think the market is starting to price in the potential that we might not have a solution by August 2," the deadline for raising the U.S. debt limit, said Channing Smith, managing director of Capital Advisors Inc. "Confidence in our political system is beginning to fade."

Nearly half of the Dow's losses came in the last two hours of trading, after the Federal Reserve released a survey showing that the economy deteriorated in much of the country this summer. The economy slowed in eight of the Fed's 12 regions because of weak home sales and a slowdown in manufacturing.

The NYSE DOW NYSE DOW closed LOWER -198.75 points -1.59% on Wednesday July 27
Sym .......Last .......Change..........
Dow 12,302.55 -198.75 -1.59%
Nasdaq 2,764.79 -75.17 -2.65%
S&P 500 1,304.89 -27.05 -2.03%
30-yr Bond 4.2790% +0.0020

NYSE Volume 5,145,324,500 (prior 4,048,163,000)
Nasdaq Volume 2,404,682,750 (prior 1,759,016,375)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,856.58 -73.15 -1.23%
DAX 7,252.68 -96.77 -1.32%
CAC 40 3,734.07 -53.81 -1.42%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,612.60 -33.70 -0.73%
Shanghai Comp 2,723.49 +20.47 +0.76%
Taiwan We... 8,817.49 +23.25 +0.26%
Nikkei 225 10,047.19 -50.53 -0.50%
Hang Seng 22,541.69 -30.39 -0.13%
Straits Times 3,192.31 +5.74 +0.18%

http://finance.yahoo.com/news/Stocks-fall-as-lawmakers-apf-3387373179.html?x=0

Stocks fall as lawmakers remain at odds over debt

Stocks dip as lawmakers remain at standoff on raising US debt limit; Dow falls for fourth day

Chip Cutter, AP Business Writer, On Wednesday July 27, 2011, 5:42 pm

NEW YORK (AP) -- Stocks plunged Wednesday as the U.S. edged closer to defaulting on its debt and the economy showed more signs of deteriorating. Major indexes gave up all of their gains for the month.

The Dow Jones industrial average fell 198.75 points, or 1.6 percent, to 12,302.55, its biggest one-day drop since early June. It has fallen for four days straight.

The S&P 500 fell 27.05 points, or 2 percent, to 1,304.89. The technology-focused Nasdaq composite index fell 75.17 points, or 2.6 percent, to 2,764.79, its worst day in five months.

The Dow is headed for its worst weekly decline in nearly a year and is now 4 percent below the 2011 high it reached on April 29. The S&P, which serves as a benchmark for most mutual funds, is also down 4 percent from its recent peak.

"As hours pass and the uncertainty builds, I think the market is starting to price in the potential that we might not have a solution by August 2," the deadline for raising the U.S. debt limit, said Channing Smith, managing director of Capital Advisors Inc. "Confidence in our political system is beginning to fade."

Nearly half of the Dow's losses came in the last two hours of trading, after the Federal Reserve released a survey showing that the economy deteriorated in much of the country this summer. The economy slowed in eight of the Fed's 12 regions because of weak home sales and a slowdown in manufacturing.

The declines were broad. More than 10 stocks fell for every one that rose on the New York Stock Exchange, and all but two of the 30 stocks in the Dow average fell.

With no sign of a compromise in Washington, investors are becoming more fearful that the U.S. rating could be lowered. That would raise interest rates and slow down the already weak economy.

Small-company stocks fell more than the rest of the market. Small companies are more vulnerable to economic downturns since they make fewer products and usually have less cash on hand than large companies.

With the deadline for a debt deal just six days away, investors are selling the stocks they consider to be the riskiest. The Russell 2000 index, which tracks smaller U.S. companies, fell 3 percent, almost twice as much as the Dow.

Stocks have been falling overall since last Friday as an Aug. 2 deadline for raising the U.S. borrowing limit approaches. With no sign of a compromise between Republicans and Democrats in Washington, investors are becoming more fearful that the U.S.'s triple-A credit rating could be lowered or that the country might default on its debt. Either event would raise interest rates across the board and slow down the already weak U.S. economy.

The Dow is down 3 percent this week. It is headed for its biggest weekly decline since August 2010. The S&P 500 is also down 3 percent, and the Russell 2000 is down 4.9 percent. The Dow and the S&P 500 are down about 1 percent for the month.

Some analysts fear that if the debt issue is not resolved stocks could fall as much as they did in the fall of 2008, when the House of Representatives voted down a bill to create the Troubled Asset Relief Program. The Dow plunged 778 points on Sept. 29 after the bill failed. Four days later, Congress passed the TARP bill and President George W. Bush quickly signed it into law. The Dow then jumped as much as 946 points in a week.

A decline in orders for manufactured goods also pushed stocks lower. The government said orders for durable goods fell 2.1 percent in June because of a drop in demand for commercial aircraft, automobiles and heavy machinery. Manufacturing has been disrupted this year by parts shortages from Japan and higher energy prices.

Earnings reports were mixed. Amazon.com Inc. rose 3.9 percent after the online retailer reported that its earnings and revenue were far higher than analysts were expecting.

Juniper Networks Inc. plunged 20.9 percent, the most of any company in the S&P 500, after the computer networking equipment maker issued an earnings forecast that was lower than many analysts expected.

Dunkin' Brands Group Inc. shot up 46.6 percent to $27.85 on the company's first day on the Nasdaq market. The parent of Dunkin' Donuts and the Baskin-Robbins ice cream chain went public to help pay down its debt.

 

[bigdog]

Source: http://finance.yahoo.com

A late sell-off wiped out the stock market's gains Thursday as the stalemate over raising the country's debt limit continued.

The market had been up for much of the day after an unexpected decrease in new applications for unemployment benefits. Stocks sank in the last half-hour of trading after Senate Majority Leader Harry Reid said that a bill to end the stalemate, proposed in the House of Representatives, would fail if it reached the Senate.

"That gave a catalyst for selling," said Quincy Krosby, market strategist at Prudential Financial.

The Dow has fallen five straight days because of worries that the U.S. might default on its debt if Congress doesn't raise the country's borrowing limit. It's down more than 484 points, or 3.8 percent. Just five days remain until the Treasury Department says the government won't have enough money to cover all of its bills.

Even if the U.S. doesn't default, investors worry that the country might lose its triple-A credit rating. That could raise interest rates and possibly slow the U.S. economy, which is still recovering from the worst recession in decades.

"We're running out of time," said Phil Dow, director of equity strategy at RBC Wealth Management in Minneapolis. "It's getting scary."

The chief executives of several of the country's largest banks sent a letter to The White House and to Congress urging a quick resolution to the debt limit debate. Bank of America Corp.'s Brian Moynihan, JPMorgan Chase & Co.'s Jamie Dimon, and Goldman Sachs Group Inc.'s Lloyd Blankfein and others warned on Thursday that the consequences on not acting would be grave for the economy, the job market, and for America's global economic leadership.

The Dow Jones industrial average fell 62.44 points, or 0.5 percent, to close at 12,240.11. The index had been up as many as 82 points earlier in the day.

The Standard & Poor's 500 fell 4.22, or 0.3 percent, to close at 1,300.67. The S&P 500 has four straight days. The Nasdaq composite index was up 1.46, or 0.1 percent, to 2,766.25.

The NYSE DOW NYSE DOW closed LOWER -62.44 points -0.51% on Thursday July 28
Sym .......Last .......Change..........
Dow 12,240.11 -62.44 -0.51%
Nasdaq 2,766.25 +1.46 +0.05%
S&P 500 1,300.67 -4.22 -0.32%
30-yr Bond 4.2570% -0.0220

NYSE Volume 4,957,269,500 (prior 5,145,324,500)
Nasdaq Volume 2,105,143,250 (prior 2,404,682,750)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,873.21 +16.63 +0.28%
DAX 7,190.06 -62.62 -0.86%
CAC 40 3,712.66 -21.41 -0.57%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,539.20 -73.40 -1.59%
Shanghai Comp 2,708.78 -14.71 -0.54%
Taiwan We... 8,767.20 -50.29 -0.57%
Nikkei 225 9,901.35 -145.84 -1.45%
Hang Seng 22,570.74 +29.05 +0.13%
Straits Times 3,199.69 +6.15 +0.19%

http://finance.yahoo.com/news/Stock...9.html?x=0&sec=topStories&pos=4&asset=&ccode=

Stocks sink as debt limit stalemate continues

Late sell-off wipes out a stock rally; House bill to raise borrowing limit is doomed in Senate

Chip Cutter, AP Business Writer, On Thursday July 28, 2011, 6:34 pm EDT

NEW YORK (AP) -- A late sell-off wiped out the stock market's gains Thursday as the stalemate over raising the country's debt limit continued.

The market had been up for much of the day after an unexpected decrease in new applications for unemployment benefits. Stocks sank in the last half-hour of trading after Senate Majority Leader Harry Reid said that a bill to end the stalemate, proposed in the House of Representatives, would fail if it reached the Senate.

"That gave a catalyst for selling," said Quincy Krosby, market strategist at Prudential Financial.

The Dow has fallen five straight days because of worries that the U.S. might default on its debt if Congress doesn't raise the country's borrowing limit. It's down more than 484 points, or 3.8 percent. Just five days remain until the Treasury Department says the government won't have enough money to cover all of its bills.

Even if the U.S. doesn't default, investors worry that the country might lose its triple-A credit rating. That could raise interest rates and possibly slow the U.S. economy, which is still recovering from the worst recession in decades.

"We're running out of time," said Phil Dow, director of equity strategy at RBC Wealth Management in Minneapolis. "It's getting scary."

The chief executives of several of the country's largest banks sent a letter to The White House and to Congress urging a quick resolution to the debt limit debate. Bank of America Corp.'s Brian Moynihan, JPMorgan Chase & Co.'s Jamie Dimon, and Goldman Sachs Group Inc.'s Lloyd Blankfein and others warned on Thursday that the consequences on not acting would be grave for the economy, the job market, and for America's global economic leadership.

The Dow Jones industrial average fell 62.44 points, or 0.5 percent, to close at 12,240.11. The index had been up as many as 82 points earlier in the day.

The Standard & Poor's 500 fell 4.22, or 0.3 percent, to close at 1,300.67. The S&P 500 has four straight days. The Nasdaq composite index was up 1.46, or 0.1 percent, to 2,766.25.

The price of gold, which tends to rise when investors are fearful of economic disruptions, fell $1.70 to $1,613.40 an ounce. Gold is up $100 an ounce in the last two weeks and nearly $200 an ounce since the beginning of the year, when it traded at $1,422 an ounce. When gold prices are high, experts say it's a good indicator that people are reluctant to invest in other markets.

The dollar rose against other currencies. Treasury prices were also up slightly.

Markets declined less on Thursday than they did earlier in the week. That's partly because the government reported that first-time applications for unemployment benefits fell to 398,000 last week, the fewest in four months. Economists had expected 415,000 first-time applications for unemployment benefits. And any figure below 400,000 is typically associated with job growth.

Technology stocks rose after LSI Corp., which makes storage and networking chips, forecast revenues that were higher than investors were expecting. Its stock gained 14.1 percent, the most in the S&P 500.

Bristol-Myers Squibb Co. rose 1.5 percent after the drugmaker reported earnings that were better than analysts anticipated. The company also raised its earnings forecast for 2011.

Exxon Mobil Corp. fell 2.2 percent after its earnings came in below analysts' estimates.

Akamai Technologies Inc. fell 19.1 percent, the most in the S&P 500 index, after the online streaming company's earnings were lower than analysts had expected. Sprint Nextel Corp. fell 15.9 percent. The nation's No. 3 wireless carrier said its loss widened in the second quarter, partly because of a tax expense and investment losses.

The Dow is down 3.5 percent for the week and is headed for its worst week since last July. The S&P 500 is down 3.3 percent for the week, while the Nasdaq is down 3.2 percent. Still, the Dow is up 5.7 percent for the year, the S&P is up 3.4 percent for the year and the Nasdaq is up 4.3 percent for the year.

Nearly two stocks fell for every one that rose on the New York Stock Exchange. Volume was relatively heavy at 4.4 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

The word of the day in financial markets: Anxious.

On Friday, traders did something they rarely do: they sold what are considered to be the world's safest short-term investments. Traders typically buy short term U.S. Treasurys on Friday because they want their money in a safe place in case something happens over the weekend to rattle markets.

But this week, they instead bought longer-duration bonds as concerns grew that the federal government may not be able to pay all of its bills next month. Yields on bonds due in one month rose higher than those due in six months. The higher the yield, the higher the implied risk of the bond.

Analysts say it's a clear sign a short-term default is a growing possibility.

The sell-off in short-term Treasurys shows that "the market is very concerned," said Thomas Tzitzouris, head of fixed income research at Strategas Research Partners. "It's not panic, but we are pre-positioning in case something goes wrong over the weekend."

Stocks continued a weeklong slide after a dismal report on economic growth added to the anxiety. Major indexes erased some of their early losses on Friday after President Barack Obama said there were many paths to a compromise on raising the debt limit.

The Dow Jones industrial average fell 96.87 points, or 0.8 percent, to close at 12,143.24

The combination of bad economic news and growing worries about a possible debt default was evident in nearly every measure of investor confidence:

-- The Dow Jones industrial average had a sixth straight day of losses, a string that has erased 581.17 points.

The NYSE DOW NYSE DOW closed LOWER -96.87 points -0.79% on Friday July 29
Sym .......Last .......Change..........
Dow 12,143.24 -96.87 -0.79%
Nasdaq 2,756.38 -9.87 -0.36%
S&P 500 1,292.28 -8.39 -0.65%
30-yr Bond 4.1320% -0.1250

NYSE Volume 5,159,192,000 (prior 4,957,269,500)
Nasdaq Volume 2,333,920,000 (prior 2,105,143,250)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,815.19 -58.02 -0.99%
DAX 7,158.77 -31.29 -0.44%
CAC 40 3,671.28 -41.38 -1.11%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,500.50 -38.70 -0.85%
Shanghai Comp 2,701.73 -7.05 -0.26%
Taiwan We... 8,644.18 -123.02 -1.40%
Nikkei 225 9,833.03 -68.32 -0.69%
Hang Seng 22,440.25 -130.49 -0.58%
Straits Times 3,189.26 -0.59 -0.02%

http://finance.yahoo.com/news/Marke...1.html?x=0&sec=topStories&pos=5&asset=&ccode=

Markets on edge as debt limit debate drags on

Debt drama and weak US economic growth keep market volatile, lead to short-term bond sell-off

Daniel Wagner, David K. Randall and Jonathan Fahey, AP Business Writers, On Friday July 29, 2011, 4:53 pm EDT

The word of the day in financial markets: Anxious.

On Friday, traders did something they rarely do: they sold what are considered to be the world's safest short-term investments. Traders typically buy short term U.S. Treasurys on Friday because they want their money in a safe place in case something happens over the weekend to rattle markets.

But this week, they instead bought longer-duration bonds as concerns grew that the federal government may not be able to pay all of its bills next month. Yields on bonds due in one month rose higher than those due in six months. The higher the yield, the higher the implied risk of the bond.

Analysts say it's a clear sign a short-term default is a growing possibility.

The sell-off in short-term Treasurys shows that "the market is very concerned," said Thomas Tzitzouris, head of fixed income research at Strategas Research Partners. "It's not panic, but we are pre-positioning in case something goes wrong over the weekend."

Stocks continued a weeklong slide after a dismal report on economic growth added to the anxiety. Major indexes erased some of their early losses on Friday after President Barack Obama said there were many paths to a compromise on raising the debt limit.

The Dow Jones industrial average fell 96.87 points, or 0.8 percent, to close at 12,143.24

The combination of bad economic news and growing worries about a possible debt default was evident in nearly every measure of investor confidence:

-- The Dow Jones industrial average had a sixth straight day of losses, a string that has erased 581.17 points.

-- All 10 industry groups in the S&P 500 stock index fell.

-- Gold rose nearly 1 percent to $1,631 an ounce.

-- A measure of stock market volatility, the VIX, rose 6 percent.

-- The cost to protect against a U.S. default within the next year reached a record high. The cost to insure Treasurys for one year jumped 54 percent this week.

Longer-term government bond prices rose as traders saw them as less likely to be affected by short-term positioning in Washington. The yield on the 10-year Treasury bond fell to 2.79 percent, its lowest level of the year. Bond prices move in the opposite direction of their yields.

The Standard and Poor's 500 index lost 8.39 points, or 0.6 percent, to 1,292.28. The Nasdaq composite fell 9.87, or 0.4 percent, to 2,756.38

If Congress fails to act by Tuesday, the U.S. may not be able to pay all its financial obligations. That includes interest payments on bonds and the salaries of federal employees. A default on U.S. Treasury debt could wreak havoc on financial markets and the economy.

Many analysts continue to believe a deal to raise the country's borrowing limit will be made before the Aug. 2 deadline.

"It seems unlikely that Congress would choose financial Armageddon over some type of compromise," said Joseph S. Tanious, a market strategist with J.P. Morgan Asset Management.

Some argue that the market's recent downturn is overshadowing strong corporate earnings reports. They also say the market is ignoring other reasons to believe the economy will bounce back in the second half of the year.

"It's a very confusing time, but once this cloud lifts, market participants are going to turn around and say, `This isn't so bad.'," said John Canally, an economist with LPL Financial. "It's definitely going to be a rocky couple of days."

The government reported early Friday that economic growth slowed in the first half of the year to its weakest pace since the recession ended two years ago.

Some investors said that the economic report wasn't as bad as it first appeared. Phil Orlando, chief strategist at Federated Investors, said that the report was a "rearview mirror view of an economy that was struggling with the impact of the earthquake in Japan and high commodity prices." Orlando said he believes that rising corporate profits and a rebound in the auto industry will push stocks higher for the rest of the year.

Merck fell 2 percent even after the company reported strong earnings. Chevron dropped 1 percent despite better second-quarter earnings.

Housewares maker Newell Rubbermaid Inc. jumped 8 percent after reporting that its profit rose 13 percent as strong demand from emerging markets offset weakness in the U.S. Expedia Inc. gained 9 percent after the travel website operator said its income rose more than analysts had expected. It credited an increase in the number of travel bookings and higher prices for plane tickets and hotel rooms.

The Dow is still up 4.9 percent for the year, but it is down 667.3 points, or 5.2 percent, from its highest point of the year, which it reached on April 29.

Small-company stocks fared worse than the rest of the market as investors sold stocks they consider to be the most risky. The Russell 2000, which measures the smallest stocks on the market, fell 5.3 percent this week, worse than 3.9 percent decline in the S&P 500 index.

Two stocks fell for every one that rose on the New York Stock Exchange. Consolidated volume was above average at 4.5 billion shares.

8109

 

[bigdog]

Source: http://finance.yahoo.com

Leave it to the economy to stop a stock market rally.

The Dow started the day up nearly 140 points after President Barack Obama and congressional leaders said Sunday that a deal had been reached to raise the nation's borrowing limit and avoid a possible debt default.

But another sign that the economy has slowed erased those early gains and took the Dow down as many as 145 points by midday.

The Dow Jones industrial average ended the day with a loss of 10.75 points. It was the seventh day of declines for the blue-chip index.

Many investors remained concerned about the direction of the economy. A report from the Institute of Supply Management said that U.S. manufacturing barely grew last month. And on Friday, the government said that so far this year the economy has grown at its slowest pace since the recession ended in June 2009.

The manufacturing index was the first major economic report released in July. Analysts had expected it to show that the economy was expanding.

"This was a shock to the market," said Phil Orlando, chief strategist at Federated Investors. "It clearly offset the emotional strength that we saw in the open from this tentative budget compromise."

Federal Reserve Chairman Ben Bernanke and many economists have said that the U.S. economy would gain momentum in the second half of the year. But the manufacturing report, sluggish overall growth and concern about spending cuts included in the debt deal have cast doubt on that prediction.

The Dow fell 0.1 percent, to 12,132.49. The broader Standard and Poor's 500 index lost 5.34, or 0.4 percent, to 1,286.94. The Nasdaq composite fell 11.77, or 0.4 percent, to 2,744.61.

The NYSE DOW NYSE DOW closed LOWER -10.75 points -0.09% on Monday August 1
Sym .......Last .......Change..........
Dow 12,132.49 -10.75 -0.09%
Nasdaq 2,744.61 -11.77 -0.43%
S&P 500 1,286.94 -5.34 -0.41%
30-yr Bond 4.0710% -0.0610

NYSE Volume 5,040,458,000 (prior 5,159,192,000)
Nasdaq Volume 2,242,922,250 (prior 2,333,920,000)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,774.43 -40.76 -0.70%
DAX 6,953.98 -204.79 -2.86%
CAC 40 3,588.05 -83.23 -2.27%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,573.10 +72.60 +1.61%
Shanghai Comp 2,703.78 +2.05 +0.08%
Taiwan We... 8,701.38 +57.20 +0.66%
Nikkei 225 9,965.01 +131.98 +1.34%
Hang Seng 22,663.37 +223.12 +0.99%
Straits Times 3,215.27 +26.01 +0.82%

http://finance.yahoo.com/news/Concerns-about-the-economy-apf-304350151.html?x=0

Concerns about the economy end early Dow rally

An early stock rally fades quickly after another sign of weakness in the economy

David K. Randall, AP Business Writer, On Monday August 1, 2011, 5:30 pm

NEW YORK (AP) -- Leave it to the economy to stop a stock market rally.

The Dow started the day up nearly 140 points after President Barack Obama and congressional leaders said Sunday that a deal had been reached to raise the nation's borrowing limit and avoid a possible debt default.

But another sign that the economy has slowed erased those early gains and took the Dow down as many as 145 points by midday.

The Dow Jones industrial average ended the day with a loss of 10.75 points. It was the seventh day of declines for the blue-chip index.

Many investors remained concerned about the direction of the economy. A report from the Institute of Supply Management said that U.S. manufacturing barely grew last month. And on Friday, the government said that so far this year the economy has grown at its slowest pace since the recession ended in June 2009.

The manufacturing index was the first major economic report released in July. Analysts had expected it to show that the economy was expanding.

"This was a shock to the market," said Phil Orlando, chief strategist at Federated Investors. "It clearly offset the emotional strength that we saw in the open from this tentative budget compromise."

Federal Reserve Chairman Ben Bernanke and many economists have said that the U.S. economy would gain momentum in the second half of the year. But the manufacturing report, sluggish overall growth and concern about spending cuts included in the debt deal have cast doubt on that prediction.

The Dow fell 0.1 percent, to 12,132.49. The broader Standard and Poor's 500 index lost 5.34, or 0.4 percent, to 1,286.94. The Nasdaq composite fell 11.77, or 0.4 percent, to 2,744.61.

The S&P index traded below its 200-day moving average of 1,280. Many traders use moving averages as benchmarks for when to buy and sell. Orlando said the S&P could fall to 1,250 or lower over the next few days as investors begin to doubt the strength of the economy.

Health care stocks fell nearly 2 percent, the most of the 10 company groups in the S&P 500 index. United HealthGroup Inc., Aetna Inc., and St. Jude Medical Inc. fell more than 2.5 percent after the government said it plans to cut Medicare reimbursement rates 11 percent. The cuts are unrelated to the debt deal.

Bond yields fell to the lowest level of the year as investors moved into safer assets. The yield on the 10-year Treasury note fell to 2.75 percent from 2.80 percent late Friday.

The manufacturing report led to a worldwide pullback from riskier assets. The Euro Stoxx 50, an index that tracks blue chip companies in countries that use the euro, fell nearly 3 percent. Oil futures dropped 1 percent to just below $95 a barrel. And gold made up its early losses to remain near $1,625 an ounce.

The latest signs of weakness in the U.S. economy also pushed the dollar lower against the Japanese yen and the Swiss franc, two currencies that traders see as relatively safe bets. The dollar touched another record low against the franc, and reached a post-World War II low against the yen.

Before the ISM report was released, stocks rose sharply largely because President Obama and Congressional leaders announced Sunday that they had agreed on a deal to raise the nation's borrowing limit ahead of Tuesday's deadline. Investors have been worried that the U.S. might default if a deal wasn't reached. The federal government would be unable to pay all of its bills after Tuesday if a law is not signed. Among them: interest payments on Treasury bonds, salaries of federal employees and Social Security checks to retirees.

The debt agreement would raise the U.S. debt limit by $2.1 trillion. It would also cut at more than $2 trillion in federal spending over 10 years. Under the bill, a new joint committee of Congress would recommend deficit reductions by the end of November that would be put to a vote by Congress by year's end.

But a vote on the measure had not been scheduled in the House or the Senate by the time the market closed.

Many important details about spending cuts and possible tax increases were to be decided by the new committee, which means it could be months before there's clarity on how the deficit will be reduced.

"The debt agreement was a step in the right direction but probably a small step," said Bob Gelfond, the head of MQS Asset Management, a hedge fund based in New York City.

Others remained concerned that the bill would not cut the deficit enough to prevent a downgrade to the U.S. government's top credit rating. Credit rating agencies Standard and Poor's and Moody's declined to comment about the bill's possible impact on their decision-making process.

"This agreement didn't resolve any of the fundamental differences in the direction of spending and revenues that would address our long-term issues," said Kate Warne, the investment strategist at Edward Jones.

Rising and failing shares were roughly even on the New York Stock Exchange. Volume was higher than average at 4.4 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

Dow, S&P See Longest Losing Streak Since 2008; S&P Negative for the Year

A sell-off is erasing all of the year's gains in the stock market.

The Standard & Poor's 500 lost 2.6 percent Tuesday as investors grew increasingly concerned about the economy. The benchmark index is now at its lowest point of the year.

A report that consumers cut their spending in June for the first time in two years added to a series of weak economic indicators have pushed stocks lower for seven straight days.

The S&P is closing down 33 points to 1,254. The Dow Jones industrial average is down 266, or 2.2 percent, to 11,867. The Nasdaq is down 75, or 2.8 percent, to 2,669.

Four stocks fell for every one that rose on the New York Stock Exchange. Volume was higher than average at 5.3 billion shares.

The NYSE DOW NYSE DOW closed LOWER -265.87 points -2.19% on Tuesday August 2
Sym .......Last .......Change..........
Dow 11,866.62 -265.87 -2.19%
Nasdaq 2,669.24 -75.37 -2.75%
S&P 500 1,254.05 -32.89 -2.56%
30-yr Bond 3.9190% -0.1520

NYSE Volume 5,897,468,500 (prior 5,040,458,000)
Nasdaq Volume 2,393,609,250 (prior 2,242,922,250)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,718.39 -56.04 -0.97%
DAX 6,796.75 -157.23 -2.26%
CAC 40 3,522.79 -65.26 -1.82%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,510.30 -62.80 -1.37%
Shanghai Comp 2,679.26 -24.52 -0.91%
Taiwan We... 8,584.72 -116.66 -1.34%
Nikkei 225 9,844.59 -120.42 -1.21%
Hang Seng 22,421.46 -241.91 -1.07%
Straits Times 3,177.35 -37.92 -1.18%

http://finance.yahoo.com/news/Stock...tml?x=0&sec=topStories&pos=main&asset=&ccode=

Stocks now down for year as economic concerns grow

Stocks retreat, with S&P down 2.6 percent as weak economic signs overshadow debt bill passage

David K. Randall, AP Business Writer, On Tuesday August 2, 2011, 4:13 pm

NEW YORK (AP) -- A sell-off is erasing all of the year's gains in the stock market.

The Standard & Poor's 500 lost 2.6 percent Tuesday as investors grew increasingly concerned about the economy. The benchmark index is now at its lowest point of the year.

A report that consumers cut their spending in June for the first time in two years added to a series of weak economic indicators have pushed stocks lower for seven straight days.

The S&P is closing down 33 points to 1,254. The Dow Jones industrial average is down 266, or 2.2 percent, to 11,867. The Nasdaq is down 75, or 2.8 percent, to 2,669.

Four stocks fell for every one that rose on the New York Stock Exchange. Volume was higher than average at 5.3 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

Stock indexes came back from deep losses in the morning and ended Wednesday with small gains. The Dow Jones industrial average avoided its longest losing streak since Jimmy Carter was president.

The Dow rose 30 points -- after being down 166 -- to break an eight-day losing streak. Nine days would have been the longest since February 1978. The S&P 500 index rose 6 points and broke a seven-day streak.

Markets have fallen recently because investors are becoming increasingly worried about the U.S. economy.

Shortly after the market opened, the Institute of Supply Management said its index measuring the service sector of the U.S. economy grew in July at the weakest pace in 17 months. Economists had expected a slight increase.

The report was the latest sign over the last week that the economy may be slowing. Consumer cut their spending in June for the first time in nearly two years; manufacturing slowed, and the government said that in the first half of the year the economy grew at its slowest pace since the recession ended in June 2009.

"There has been too much at the same time for investors to hang in there and you're starting to see some element of panic finally showing up," said Andrew Goldberg, U.S. market strategist at JP Morgan Funds.

The Dow, the Standard & Poor's 500 index and Nasdaq were down more than 1 percent earlier in the day, but edged higher throughout the afternoon.

The Dow Jones industrial average finished with a gain of 0.3 percent, to 11,896.44. The S&P 500 index rose 6.29, or 0.5 percent, to 1,260.34. The S&P had been down for seven straight days through Tuesday. It is up 0.2 percent for the year after being down 0.3 for the year on Tuesday.

The Nasdaq composite added 23.83, or 0.9 percent, to 2,693.07.

The NYSE DOW NYSE DOW closed HIGHER +29.82 points +0.25% on Wednesday August 3
Sym .......Last .......Change..........
Dow 11,896.44 +29.82 +0.25%
Nasdaq 2,693.07 +23.83 +0.89%
S&P 500 1,260.34 +6.29 +0.50%
30-yr Bond 3.8730% -0.0460

NYSE Volume 6,487,507,000 (prior 5,897,468,500)
Nasdaq Volume 2,637,165,250 (prior 2,393,609,250)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,584.51 -133.88 -2.34%
DAX 6,640.59 -156.16 -2.30%
CAC 40 3,454.94 -67.85 -1.93%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,408.30 -102.00 -2.26%
Shanghai Comp 2,678.48 -0.77 -0.03%
Taiwan We... 8,456.86 -127.86 -1.49%
Nikkei 225 9,637.14 -207.45 -2.11%
Hang Seng 21,992.72 -428.74 -1.91%
Straits Times 3,130.34 -46.75 -1.47%

http://finance.yahoo.com/news/Dow-e...3.html?x=0&sec=topStories&pos=2&asset=&ccode=

Dow edges higher, breaking an 8-day losing streak

Stocks close higher, erasing an early slide; Dow Jones average breaks an 8-day losing streak

David K. Randall, AP Business Writer, On Wednesday August 3, 2011, 5:42 pm

NEW YORK (AP) -- Stock indexes came back from deep losses in the morning and ended Wednesday with small gains. The Dow Jones industrial average avoided its longest losing streak since Jimmy Carter was president.

The Dow rose 30 points -- after being down 166 -- to break an eight-day losing streak. Nine days would have been the longest since February 1978. The S&P 500 index rose 6 points and broke a seven-day streak.

Markets have fallen recently because investors are becoming increasingly worried about the U.S. economy.

Shortly after the market opened, the Institute of Supply Management said its index measuring the service sector of the U.S. economy grew in July at the weakest pace in 17 months. Economists had expected a slight increase.

The report was the latest sign over the last week that the economy may be slowing. Consumer cut their spending in June for the first time in nearly two years; manufacturing slowed, and the government said that in the first half of the year the economy grew at its slowest pace since the recession ended in June 2009.

"There has been too much at the same time for investors to hang in there and you're starting to see some element of panic finally showing up," said Andrew Goldberg, U.S. market strategist at JP Morgan Funds.

The Dow, the Standard & Poor's 500 index and Nasdaq were down more than 1 percent earlier in the day, but edged higher throughout the afternoon.

The Dow Jones industrial average finished with a gain of 0.3 percent, to 11,896.44. The S&P 500 index rose 6.29, or 0.5 percent, to 1,260.34. The S&P had been down for seven straight days through Tuesday. It is up 0.2 percent for the year after being down 0.3 for the year on Tuesday.

The Nasdaq composite added 23.83, or 0.9 percent, to 2,693.07.

The broad S&P 500 index-- the index followed by most professional money managers and U.S. mutual funds -- rose after it hit a low for the year of 1,234. Some investors saw it as an opportunity to buy the S&P 500 index. As a whole, companies in the index are expected to have record profits this year.

Some of those gains might also be due to automatic buying triggered when an index reaches a certain level. Many traders use computer programs that buy or sell stocks once they break through their long-term averages.

"It seems like the early money was based on fear and the market climbed back as computer-program trading took over," said Mark Lamkin, the head of Lamkin Wealth Management in Louisville, Kentucky.

Lamkin said the stock market was in a "tug of war" between strong corporate earnings and a "horrible economic backdrop."

Coca-Cola led the Dow average higher with a gain of nearly 2 percent. Companies that depend most on an expanding economy in order to make profits had the steepest losses. Caterpillar Inc. fell 0.9 percent, the most of the 30 stocks in the Dow average, followed closely by Chevron Corp. and Boeing.

Along with the concerns about the U.S. economy, investors were also unnerved by a surge in bond yields to 14-year highs for Italy and Spain. High bond yields typically indicate that investors believe there is a greater chance that a country or corporation will be unable to make interest payments.

"We've been so focused inwardly because of the debt ceiling debate that we've ignored Europe over the last couple of weeks," said J.J. Kinahan, chief options strategist at T.D. Ameritrade. "We have problems, but if Italy falls the euro zone doesn't look sustainable."

Italy and Spain are the third and fourth largest economies in Europe, respectively.

The yield on the 10-year Treasury note fell to another low for the year of 2.56 percent, from 2.62 percent Tuesday, as investors moved money into assets that hold up better during economic downturns. Gold, another traditional safe haven, rose 1 percent to $1,666 an ounce.

Several large U.S. companies reported earnings before the market opened. MasterCard rose nearly 14 percent after the company beat analysts' estimates. Clorox fell 2 percent after the company said higher commodity costs were eating into its income. And CBS gained 1.6 percent after it said a deal with Netflix Inc. had lifted profits.

Payroll processor ADP said private companies added 114,000 jobs last month. The number was within Wall Street's forecasts, but still well below the rate of growth that signifies a healthy jobs market. ADP's employment figures do not always predict the government's broader employment report, which will be released Friday morning. Last month, for example, ADP reported that private employers added 157,000 jobs in June. The government later said that private companies added just 57,000 jobs.

Economists expect that 90,000 were created in the U.S. last month. That's fewer than the 125,000 jobs per month that are needed just to keep up with population growth. At least 250,000 jobs need to be created every month to substantially bring down the unemployment rate.

Analysts predict that the unemployment rate was 9.2 percent in July, unchanged from the month before.

 

[Ubershrewd]

The Dow is taking a hiding tonight; I'm not looking forward to waking up to tomorrow's local market..

 

[notting]

Total Fear!!! That's a Good sign!!

I'm really sorry if your over leveraged. That could be hard.

There's "total fear" in the market right now, said Bob Doll, chief equity strategist at BlackRock.

Jean Claud Trichet looked like he was panicking re-euro. Good. Force them to act faster.

The world continues!

Where not all going to stop tomorrow and die.

Commerce continues believe it or not!!

Most people are going to continue doing what they were doing a month ago when snp was peaking - A month ago!
ASX 200 is way beyond that. Where in great shape. Companies have loads of cash.
We are going to have the buying opportunity of the century if S&P etc drop further.
I'm seriously considering refinancing my house!
But will not move till the macro environment restructures or speaks credibly about long climb out.
The Debt debate was brutal and beautifully timed.
Have that debate when the market is peaking. They did. Gives a bit more room.
They did not take the retarded Bush taxes cuts and the market hated it.
You can't build a business(or a country) by cutting and not improving income!!
ABC dears!
Political cowards and traitors. (playing for their corrupted lobbyists and own seats instead of the country)
Oil needs to be below 75 for global growth in my opinion.
That's the stimulus and the dead hand for emerging markets.
That's the best crystal ball we have.

 

[bigdog]

Source: http://finance.yahoo.com

Gripped by fear of another recession, the financial markets suffered their worst day Thursday since the crisis of 2008. The Dow Jones industrial average fell more than 500 points, its ninth-steepest decline ever.

The sell-off wiped out the Dow's gains for 2011. It put the Dow and broader stock indexes into what investors call a correction -- down 10 percent from the highs of this spring.

"We are continuing to be bombarded by worries about the global economy," said Bill Stone, the chief investment strategist for PNC Financial.

The day was reminiscent of the wild swings that defined the markets during the crisis three years ago. Gold prices briefly hit a record high, oil fell an extraordinary $5 a barrel, and frightened investors were so desperate to get into some government bonds that they were willing accept almost no return on their money.

It was the most alarming day yet in the almost uninterrupted selling that has swept Wall Street for two weeks. Since July 21, the Dow has lost more than 1,300 points, or 10.5 percent of its value. It has closed lower nine of the 10 trading days since then.

For the day, the Dow closed down 512.76 points, at 11,383.68. It was the steepest point decline since Dec. 1, 2008

The NYSE DOW NYSE DOW closed LOWER -512.76 points -4.31% on Thursday August 4
Sym .......Last .......Change..........
Dow 11,383.68 -512.76 -4.31%
Nasdaq 2,556.39 -136.68 -5.08%
S&P 500 1,200.07 -60.27 -4.78%
30-yr Bond 3.7220% -0.1510

NYSE Volume 8,561,300,000 (prior 6,487,507,000)
Nasdaq Volume 3,327,884,750 (prior 2,637,165,250)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,393.14 -191.37 -3.43%
DAX 6,414.76 -225.83 -3.40%
CAC 40 3,320.35 -134.59 -3.90%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,352.90 -55.40 -1.26%
Shanghai Comp 2,684.04 +5.55 +0.21%
Taiwan We... 8,317.27 -139.59 -1.65%
Nikkei 225 9,659.18 +22.04 +0.23%
Hang Seng 21,884.74 -107.98 -0.49%
Straits Times 3,107.01 -23.33 -0.75%

http://finance.yahoo.com/news/Stocks-plunge-as-economic-apf-169769799.html?x=0

Dow falls 512 in steepest decline since '08 crisis

Worst day for Wall Street since 2008 crisis: Dow falls 512 and investors flee for safety

David K. Randall, AP Business Writer, On Thursday August 4, 2011, 5:07 pm

NEW YORK (AP) -- Gripped by fear of another recession, the financial markets suffered their worst day Thursday since the crisis of 2008. The Dow Jones industrial average fell more than 500 points, its ninth-steepest decline ever.

The sell-off wiped out the Dow's gains for 2011. It put the Dow and broader stock indexes into what investors call a correction -- down 10 percent from the highs of this spring.

"We are continuing to be bombarded by worries about the global economy," said Bill Stone, the chief investment strategist for PNC Financial.

The day was reminiscent of the wild swings that defined the markets during the crisis three years ago. Gold prices briefly hit a record high, oil fell an extraordinary $5 a barrel, and frightened investors were so desperate to get into some government bonds that they were willing accept almost no return on their money.

It was the most alarming day yet in the almost uninterrupted selling that has swept Wall Street for two weeks. Since July 21, the Dow has lost more than 1,300 points, or 10.5 percent of its value. It has closed lower nine of the 10 trading days since then.

For the day, the Dow closed down 512.76 points, at 11,383.68. It was the steepest point decline since Dec. 1, 2008.

Thursday's decline was the ninth-worst ever by points for the Dow. In percentage terms, the decline of 4.3 percent does not rank among the worst. On Black Monday in 1987, for example, the market fell 22 percent.

Two weeks ago, investors appeared worried about the deadlocked negotiations in Washington over the debt ceiling. Almost immediately after that was solved, concerns about the economy took over, and the selling only accelerated.

On Thursday, growing fear about the weakening U.S. economy was joined by concern in Europe that the troubled economies of Italy and Spain might need help from the European Union.

The European Union has already given financial assistance to Greece and Ireland, two countries that have struggled to pay their debts. A financial rescue package for Italy or Spain might be more than the group of countries can handle.

Traders also unloaded stocks before Friday's release of the government's unemployment report for July, which is expected to show only weak job growth and perhaps a rise in the unemployment rate, which is 9.2 percent.

Together, they produced "a perfect storm of selling," said Ryan Larson, head of U.S. equity trading for RBC Global Asset Management.

Not long ago, Wall Street had mostly convinced itself that the U.S. economy would improve in the second half of the year. Gas prices were falling, and Japanese factories were resuming production after disruptions from the March earthquake.

Then one report after another began to show that the economy was much weaker than first thought.

Manufacturing is barely growing. The service sector, which covers about 90 percent of the American work force, is growing at the slowest rate in a year and a half. People spent less in June than in May, the first decline since September 2009.

And the overall economy is expanding at the slowest pace since the end of the Great Recession. It grew at an annual rate of less than 1 percent for the first six months of this year, raising the risk of another recession.

In an indication of how frightened investors are, Bank of New York Mellon said it would start charging large investors to hold their cash. The bank's clients include pension funds and large investment houses.

Mark Luschini, chief investment strategist for Janney Montgomery Scott, an investment firm in Philadelphia, said his clients saw the move from stocks into cash as "a parking lot to sort things out."

"With the scars of 2008 still fresh," he said, "some clients don't want to miss the change to pre-empt further damage should it come."

Other market indicators reinforced the risk-averse mood. Gold, which is seen as a safe investment when the stock market is turbulent, set a record price, $1,684.90 an ounce, before falling to finish the day at $1,659. Adjusted for inflation, gold is still far below its record high, reached in 1980.

The yield on the 10-year Treasury note fell to 2.42 percent, its lowest of the year, and the yield on the 2-year Treasury note hit its lowest ever, 0.265 percent. Bond yields fall when demand for bonds increases.

The yield on the one-month Treasury bill fell to almost nothing -- 0.008 percent. Investors were willing to accept paltry returns in exchange for holding investments they believed to be stable.

The sell-off was broad. All 10 industry groups in the Standard & Poor's 500 index fell. Energy companies lost almost 7 percent, materials companies were down 6.6 percent, and industrial companies lost more than 5 percent.

For a time, Kraft Foods was the only stock to rise among the 30 that make up the Dow industrials. Kraft announced Thursday that it would split in two, with one company focusing on snacks and the other groceries. But the selling eventually dragged Kraft under, too, and its stock finished down 52 cents, at $33.78.

Steep stock market losses like the ones of the past two weeks, can be self-reinforcing. A drop in stocks erodes household wealth and raises doubts about the economic outlook.

The result can be what economists call a vicious cycle. Stock losses take a toll on consumer confidence and make people more reluctant to spend money. Consumer spending makes up 70 percent of economic output in the United States.

Kevin Cook, senior stock strategist for Zacks Investment Research in Chicago, said investors' worst fears probably won't come true.

"This is not 2008 again," he said. "We don't have a liquidity crisis, we don't have a credit crisis -- this is just profit taking."

Cook said he believes the S&P 500, which closed Thursday at 1,200.07, will trade between 1,150 and 1,250 between now and Oct. 1, at least until investors have enough information to determine whether the economy is in recession again.

Even taking into account the recent declines, stocks are still considered to be in an impressive bull market that began March 9, 2009, when the market reached its recession low.

The Dow closed that day at 6,547. Since then, it is up about 74 percent.

One year ago, the Dow closed at 10,680. About a month later, the stock market began a rally that took it almost to 13,000. The catalyst was an announcement by Federal Reserve Chairman Ben Bernanke that the Fed was preparing to launch a program to buy $600 billion in government bonds to keep interest rates low and help stocks rally.

The sell-off now comes at a time when corporate profits are growing. For the S&P 500, a measure called the forward price-to-earnings ratio has fallen to about 12, well below its long-term average of 16. That means that investors who buy now are paying less for each dollar in profits.

Based on what an investor now pays for corporate profits, stocks are now trading at their lowest levels in 20 years, said Tim Courtney, chief investment officer of Burns Advisory Group in Oklahoma City.

Few companies were spared in the sell-off. Just 3 of the 500 stocks in the S&P 500 moved higher. General Motors fell 4 percent despite beating analyst estimates for its quarterly earnings.

 

[Wysiwyg]

Take the seppos out of the global economy. They're dead weight and drag the world down with them.

 

[bigdog]

Source: http://finance.yahoo.com

If you looked away Friday, you missed a market rally. Or a plunge.

Stocks end a day of wild swings mostly down

Stocks mostly lower after a day of 100-point swings; worries about US, Europe deepen

The NYSE DOW NYSE DOW closed HIGHER +60.93 points +0.54% on Friday August 5
Sym .......Last .......Change..........
Dow 11,444.61 +60.93 +0.54%
Nasdaq 2,532.41 -23.98 -0.94%
S&P 500 1,199.38 -0.69 -0.06%
30-yr Bond 3.8230% +0.1010

NYSE Volume 9,797,533,000 (prior 8,561,300,000)
Nasdaq Volume 3,774,773,000 (prior 3,327,884,750)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,246.99 -146.15 -2.71%
DAX 6,236.16 -178.60 -2.78%
CAC 40 3,278.56 -41.79 -1.26%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,169.70 -183.20 -4.21%
Shanghai Comp 2,626.42 -57.62 -2.15%
Taiwan We... 7,853.13 -464.14 -5.58%
Nikkei 225 9,299.88 -359.30 -3.72%
Hang Seng 20,946.14 -938.60 -4.29%
Straits Times 2,994.78 -112.23 -3.61%

http://au.finance.yahoo.com/news/Stocks-end-a-day-of-wild-apf-337435135.html?x=0&.v=19

Stocks end a day of wild swings mostly down

Stocks mostly lower after a day of 100-point swings; worries about US, Europe deepen

Daniel Wagner and Stan Choe, AP Business Writers, On Saturday 6 August 2011, 8:15

NEW YORK (AP) -- If you looked away Friday, you missed a market rally. Or a plunge.

A soothing government report on employment in July eased concerns that the U.S. might slide back into a recession, and the Dow Jones industrial average rose as much as 171 points soon after trading began. But fears that Europe's growing debt crisis might threaten U.S. banks and the fragile economy ruled Friday.

After its early rise, the Dow fell more than 400 points and was down 243 just before noon. Then it rose nearly 400 points in less than an hour and was up 135 points. The rest of the day, the blue-chip stock index bounced up and down, sometimes by as much as 100 points in less than half an hour. It ended the day up 61 points, or 0.5 percent.

Stocks have been "like a tether ball being smacked around the pole" by worries about weakening economies around the world, said Sam Stovall, chief investment strategist for Standard & Poor's Equity Research.

Even less-developed countries like Brazil and China, which have been the motor of global growth for three years, are slowing. Brazilian stocks have dropped nearly 30 percent since Nov. 4 as the country tries to stem inflation. Manufacturing in China shrank in July for the first time in a year.

In Europe, debt problems are spreading, threatening Italy and Spain, the continent's third-and fourth-largest economies. In the U.S, a possible debt default was averted earlier this week, but concerns remain. Chief among them: less spending by consumers, which is leading to anemic growth by both manufacturing and service companies and too few new jobs to lower the unemployment rate significantly.

Investors also worry that the federal government is more likely to hurt the economy than help it. Instead of more spending, the government is trying to reduce its budget deficits by spending less.

Randy Warren, chief investment officer at the investment company Warren Financial Service, said markets were jittery over how leaders in the U.S. reacted to the debt crisis here and how leaders in Europe have reacted to the growing debt problems there.

"The fear was that they had no plan to deal with the situation," Warren said.

In Europe, either Italy or Spain could become the next country unable to repay its debt. European leaders and central bankers might not have the cash needed to prop them up until a larger financial rescue fund can be established.

"The burden of debt has become much more onerous because the outlook for growth is sliding back. That is very concerning for the markets," said Don Smith, economist at ICAP, the largest inter-dealer broker in the world. "The fear is ultimately about defaults and business failures."

In the U.S., few believe the government is likely to stimulate the economy through spending, as it did with its $800 billion stimulus program in 2009. Washington will instead cut spending by more than $2.1 trillion over 10 years to reduce the deficit.

"When investors took a step back and looked at the deal, it became clear that the long-term debt issues have yet to be resolved and that some hard decisions still need to be made," said Bob Doll, chief equity strategist at BlackRock. "Investors do not like uncertainty."

That contributed significantly to the up and down trading on Friday and all week, strategists said. Some investors bought stocks after steep price declines, said Ron Florance, an investment strategist at Wells Fargo Private Bank. That helped reverse the midday loss. Others have rushed to sell their holdings before the weekend, he said. That contributed to the declines seen in the morning and the pared-back gains in the afternoon.

Such volatility often follows historic sell-offs like the one Thursday, analysts said.

All three major stock indexes are in correction. That is, they are down 10 percent or more off their recent highs.

The Dow fell 5.8 percent this week. It plunged 513 points on Thursday alone, the worst day for the Dow since 2008.

The S&P 500, the benchmark for most mutual funds, fell 0.1 percent Friday. It fell 7.2 percent for the week and is down 10.8 percent since July 22, when its steady declines began.

The Nasdaq composite index fell 24 points, or 0.9 percent. It is down 11.4 percent since July 22.

Commodities also fell on worries that weaker global economies will mean less demand. Crude oil fell $8.82, to $86.88 over the week.

Overseas markets also fell Friday. Tokyo, Hong Kong and China all closed down more than 2 percent. Taiwan lost 5.6 percent. Asian markets all closed before the jobs report was released in the U.S. In Europe, shares recovered some of their losses after plunging to their lowest levels in more than a year. Germany's DAX index fell 2.8 percent. It had been down as much as 4 percent before the jobs report was released in the U.S. Other indexes showed smaller losses.

The yield on the 2-year Treasury note fell to 0.29 percent, after brushing a record low of 0.26 percent earlier Friday. Investors looking for safer assets have rushed to buy Treasurys, sending their prices higher and yields lower. The yield on the benchmark 10-year Treasury note rose to 2.56 percent after hitting a low of 2.39 percent on Thursday.

Florance, of Wells Fargo, said he expected stocks to remain volatile for the next several weeks until it's clear how healthy -- or unhealthy -- the economy is.

The U.S. economy added 117,000 jobs in July, and 56,000 more were added in May and June than reported previously, the Labor Department said. The unemployment rate inched down to 9.1 percent from 9.2 percent, partly because some unemployed workers stopped looking for work, so they were no longer counted as unemployed. Health care providers and manufacturers added jobs.

"From an economic standpoint, 117,000 jobs is hardly sufficient to boost the economy," said Dan Greenhaus, chief global strategist at the trading firm BTIG.

But the number was what people who follow the markets were hoping for. The consensus forecast had been that the economy added 90,000 jobs in July. As the week wore on, investors began to worry the number would be smaller or even negative. After Thursday's market meltdown, the employment report, which was released before the market opened Friday, was considered reassuring.

More than 200,000 jobs need to be created every month to rapidly reduce the unemployment rate. Unemployment has been above 9 percent nearly every month since the recession officially ended in June 2009. The economy has created an average of just 72,000 jobs over the last three months, down from 215,000 from February through April.

At the same time, the economy grew at just a 1.3 percent annual rate in the second quarter, less than economists expected. That weakness means one economic shock or policy mistake could tip the economy into a recession, Wachovia senior economist Mark Vitner said. Nigel Gault, chief U.S. economist for IHS Global Insight, said the probability of another recession is 40 percent.

Even so, many analysts said the economy might not be as bad off as it seems. For one thing, companies have reported strong profits and are flush with cash. They also cut costs drastically during the recession.

Those in the S&P 500 have amassed more than $963 billion in cash. That's up from $610 billion at the start of the recession, according to S&P. Earnings in the second quarter rose 11 percent from a year ago for the 422 companies in the S&P 500 index that have reported so far.

Even so, only three of the S&P 500's ten industry groups are up for the year: Health care, utilities and consumer staples. Traders consider those companies to be relatively recession-resistant.

Procter & Gamble Co. rose 1.7 percent Friday. Fourth-quarter revenue and income jumped on strong sales in emerging markets.

Viacom Inc. rose 1.9 percent after the media company said its income and revenue increased more than analysts expected in the second quarter because of strong advertising sales and fees from cable companies.

Priceline.com Inc. surged 9.2 percent, the most in the S&P, after the company reported that it earned far more than analysts had expected in the second quarter as travel bookings on the website increased

8781

 

[bigdog]

Source: http://finance.yahoo.com

Fear has taken over on Wall Street.

The Dow Jones industrials fell 634.76 points, the first trading day since Standard & Poor's downgraded American debt. . It was the sixth-worst point decline for the Dow in the last 112 years and the worst drop since December 2008. Every stock in the Standard & Poor's 500 index declined Monday.

But the S&P downgrade wasn't the only catalyst Monday. Investors worried about the slowing U.S. economy, escalating debt problems threatening Europe and the prospect that fear in the markets would reinforce itself, as it did during the financial crisis in the fall of 2008.

The NYSE DOW NYSE DOW closed LOWER -634.76 points -5.55% on Monday August 8
Sym .......Last .......Change..........
Dow 10,809.85 -634.76 -5.55%
Nasdaq 2,357.69 -174.72 -6.90%
S&P 500 1,119.46 -79.92 -6.66%
30-yr Bond 3.6630% -0.1600

NYSE Volume 11,205,076,000 (prior 9,797,533,000)
Nasdaq Volume 4,055,974,500 (prior 3,774,773,000)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,109.28 -137.71 -2.62%
DAX 5,923.27 -312.89 -5.02%
CAC 40 3,125.19 -153.37 -4.68%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,092.80 -76.90 -1.84%
Shanghai Comp 2,529.88 -96.54 -3.68%
Taiwan We... 7,636.11 -217.02 -2.76%
Nikkei 225 9,110.41 -189.47 -2.04%
Hang Seng 20,082.77 -863.37 -4.12%
Straits Times 2,870.89 -123.89 -4.14%

http://au.finance.yahoo.com/news/Dow-plunges-more-than-634-apf-1960115615.html?x=0&.v=20

Dow plunges more than 634 points after downgrade

Stocks plunge after S&P downgrade; Dow down 634; Europe, economy fears send Treasurys, gold up

Stan Choe, AP Business Writer, On Tuesday 9 August 2011, 8:07

NEW YORK (AP) -- Fear has taken over on Wall Street.

The Dow Jones industrials fell 634.76 points, the first trading day since Standard & Poor's downgraded American debt. . It was the sixth-worst point decline for the Dow in the last 112 years and the worst drop since December 2008. Every stock in the Standard & Poor's 500 index declined Monday.

But the S&P downgrade wasn't the only catalyst Monday. Investors worried about the slowing U.S. economy, escalating debt problems threatening Europe and the prospect that fear in the markets would reinforce itself, as it did during the financial crisis in the fall of 2008.

"`What's rocking the market is a growth scare," said Kathleen Gaffney, co-manager of the $20 billion Loomis Sayles bond fund. "The market is under a lot of stress that really has little to do with the downgrade." Instead, Gaffney said, investors are focused on worries about another recession and "how Europe and the U.S. are going to work their way out of a high debt burden" if economic growth remains slow.

The Vix, a measure of market volatility and fear among investors, shot up 50 percent. That was its steepest rise since February 2007.

Investors desperately looked for safe places to put their money and settled on U.S. government debt -- even though it was the target of the downgrade Friday, when S&P removed the United States from its list of the lowest-risk countries.

The price of Treasurys rose sharply, and yields, which move in the opposite direction from price, plunged. The yield on the 10-year Treasury note fell to 2.34 percent from 2.57 percent Friday. That matches its low for the year, reached last week. Before last Friday, there was widespread concern that a downgrade would push yields up and increase borrowing costs for the government, businesses and consumers.

"This is largely a flight to safety," said Thomas Simons, money market economist with Jefferies & Co. "The bond market is really trading off of what's going on in the stock market." Money flowed out of stocks and into Treasurys.

Gold set a record. It rose $61.40 an ounce to settle at $1,713.20.

Crude oil, natural gas and other commodities fell sharply on worries that a weaker global economy will mean less demand. Oil fell 6.4 percent to $81.31 per barrel, its lowest price of the year.

Fear is spreading quickly through the market, said Dimitre Genov, senior portfolio manager with Artio Global Investors. "It's becoming a vicious cycle and could feed into consumers reducing their demand as well."

The Dow was down 5.5 percent a 10,809.85. The sharp drop extended Wall Street's almost uninterrupted decline since late July, when the Dow was flirting with 13,000. It fell below 11,000 for the first time since November.

The S&P 500 fell 79.92, or 6.7 percent, to 1,119.46. The Nasdaq composite index fell 174.72, or 6.9 percent, to 2,357.69.

Trading volume was the highest since September 2008 and the fourth-highest on record. A total of 9.9 billion shares traded, and about 70 stocks fell for every one that rose on the New York Stock Exchange.

Stock markets in Asia began Monday's global rout. The main stock index fell almost 4 percent in South Korea and more than 2 percent in Japan. European markets opened later and fell, too, with Germany down 5 percent and France 4.7 percent.

In the U.S., stocks fell even as Moody's, another major credit rating agency, stood by its top rating of Aaa for the United States. It said it could downgrade the U.S. if it doesn't cut its deficit, "but it is early to conclude that such measures will not be forthcoming."

Financial markets also did not appear comforted by an afternoon statement by President Barack Obama, who said Washington needs more "common sense and compromise" to tame its debt.

"Markets will rise and fall," he said. "But this is the United States of America. No matter what some agency may say, we've always been and always will be a triple-A country."

S&P, in its downgrade, criticized dysfunction in the American political system. The downgrade wasn't a total surprise but came when investors were already feeling nervous about the U.S. economy and European debt, among other problems.

Last week, the Dow Jones industrial average fell almost 700 points. That was its biggest weekly point loss since 2008, during the financial crisis. Counting Monday, the Dow has dropped in 10 of the last 12 trading days. It is down more than 1,900 points, or 15 percent, since July 21.

The Russell 2000 index of small stocks has now lost nearly 25 percent from its most recent high on April 29. A decline of 10 percent or more is considered to be a correction. And a drop of 20 percent or more is said to be the start of a bear market.

The Nasdaq and S&P 500 are both down about 18 percent since the end of April. The Dow is down 16 percent.

The last bear market for the S&P 500 ran from October 2007 until March 2009. The index lost 57 percent of its value.

Despite the slide the last two and a half weeks, the S&P 500 index, at 1,119, is 7 percent higher than its close of 1,047 late last August, just before the Federal Reserve announced a program to support the economy. And the Dow's percentage drop of 5.5 didn't make the list of its 20 worst days.

S&P on Monday downgraded mortgage lenders Fannie Mae, Freddie Mac and other agencies linked to long-term U.S. debt. Fannie and Freddie own or guarantee about half of all U.S. mortgages. Their downgrade could eventually mean higher mortgage rates.

Worries about weaker profits that could result from a slowing economy have slammed the financial industry since late July. As a group, financial stocks in the S&P 500 index fell 10 percent on Monday to their lowest level since July 2009.

Bank of America plunged 20.3 percent, to $6.51, after AIG filed suit against the bank. The insurer alleged Bank of America sold it overvalued mortgage-backed securities. The bank denied the allegations. Its stock is down 51 percent this year, from $13.34.

Stocks in other industries whose profits are closely tied to the strength of the economy also fell sharply. Energy stocks in the S&P 500 fell 8.3 percent, for example.

The smallest losses came in safer industries such as consumer staples whose profits tend to be steady, regardless of the economy. Even in a bad economy people will still buy things like toothpaste and bread.

The Vix, a measure of fear among investors, is up more than 90 percent this month. The index shows how worried investors are that the S&P 500 will drop over the next 30 days. It does that by measuring prices for stock options that investors can buy to help protect their portfolios.

Investors are also worried that Italy and Spain could become the next European countries to have trouble repaying their debts. Greece, Ireland and Portugal have already received bailout loans because of Europe's 21-month-old debt crisis.

The fears have pushed investors to shun Spanish and Italian bonds, which have led to higher yields and in even higher borrowing costs for the two countries.

The European Central Bank stepped in Monday and bought billions of euros worth of their bonds. The move helped to lower yields on Spanish and Italian bonds, at least temporarily.

Seeking to avert panic spreading across financial markets, the finance ministers and central bankers of the Group of 20 industrial and developing nations issued a joint statement Monday saying they were committed to taking all necessary measures to support financial stability and growth.

"We will remain in close contact throughout the coming weeks and cooperate as appropriate, ready to take action to ensure financial stability and liquidity in financial markets," they said.

Worries about the U.S. economic recovery have been building since the government said that economic growth was far weaker in the first half of 2011 than economists expected.

 

[bigdog]

Source: http://finance.yahoo.com

The Fed spoke -- and financial markets rallied. The Dow Jones industrial average surged more than 429 points, its tenth highest point gain in history and the biggest since March 2009. It was just one day after the Dow had its worst point decline since 2008.

The Federal Reserve pledged to keep its key interest rate at its record low of nearly zero through the middle of 2013. The central bank also said that it has discussed "the range of policy tools" it can use to spur the economy.

The central bank's statement means that another of round fiscal stimulus could be on the way as the Fed works to keep those rates low, said Brian Jacobsen, chief portfolio strategist for Wells Fargo Funds Management, which has $228 billion in assets under management.

In June, the central bank finished its second round of bond buying, also known as quantitative easing, in hopes of boosting the economy. Bob Doll, chief equity strategist at BlackRock said the Fed's decision to hold interest rates at a very low rate for two years is "unprecedented" and called it a kind of backdoor quantitative easing.

"Markets are going to do what they would have done if the Fed went out and bought securities," Doll said. "This will push investors... back into equities."

He expects stocks to continue to rally because a slowly-growing U.S. economy won't harm corporate profits. "Corporate America has demonstrated that it can generate good growth and profits despite a weaker U.S. economy," Doll said.

The Dow rose 429.92 points, or 4 percent, to 11,239.77. It's a significant turnaround from Monday when the Dow plunged 634.76 points in the first trading day after Standard & Poor's downgraded the U.S. one notch from its top AAA credit rating to AA+.

The S&P 500 rose 53.07, or 4.7 percent, to 1,172.53. The Nasdaq composite index rose 124.83, or 5.3 percent, to 2,482.52.

The NYSE DOW NYSE DOW closed HIGHER +429.92 points +3.98% on Tuesday August 9
Sym .......Last .......Change..........
Dow 11,239.77 +429.92 +3.98%
Nasdaq 2,482.52 +124.83 +5.29%
S&P 500 1,172.53 +53.07 +4.74%
30-yr Bond 3.5730% -0.0900

NYSE Volume 10,473,992,000 (prior 11,205,076,000)
Nasdaq Volume 3,885,114,500 (prior 4,055,974,500)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,164.92 +95.97 +1.89%
DAX 5,917.08 -6.19 -0.10%
CAC 40 3,176.19 +51.00 +1.63%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,096.70 +40.00 +0.99%
Shanghai Comp 2,526.07 -0.75 -0.03%
Taiwan We... 7,493.12 -59.68 -0.79%
Nikkei 225 8,944.48 -153.08 -1.68%
Hang Seng 19,330.70 -1,159.87 -5.66%
Straits Times 2,884.00 closed for holiday

http://finance.yahoo.com/news/Dow-soars-429-points-on-Fed-apf-3761644887.html?x=0

Dow soars 429 points on Fed statement

Markets spasm after Fed predictions, then rise following worst day for stocks since 2008

Stan Choe, AP Business Writer, On Tuesday August 9, 2011, 5:43 pm EDT

NEW YORK (AP) -- The Fed spoke -- and financial markets rallied. The Dow Jones industrial average surged more than 429 points, its tenth highest point gain in history and the biggest since March 2009. It was just one day after the Dow had its worst point decline since 2008.

The Federal Reserve pledged to keep its key interest rate at its record low of nearly zero through the middle of 2013. The central bank also said that it has discussed "the range of policy tools" it can use to spur the economy.

The central bank's statement means that another of round fiscal stimulus could be on the way as the Fed works to keep those rates low, said Brian Jacobsen, chief portfolio strategist for Wells Fargo Funds Management, which has $228 billion in assets under management.

In June, the central bank finished its second round of bond buying, also known as quantitative easing, in hopes of boosting the economy. Bob Doll, chief equity strategist at BlackRock said the Fed's decision to hold interest rates at a very low rate for two years is "unprecedented" and called it a kind of backdoor quantitative easing.

"Markets are going to do what they would have done if the Fed went out and bought securities," Doll said. "This will push investors... back into equities."

He expects stocks to continue to rally because a slowly-growing U.S. economy won't harm corporate profits. "Corporate America has demonstrated that it can generate good growth and profits despite a weaker U.S. economy," Doll said.

The Dow rose 429.92 points, or 4 percent, to 11,239.77. It's a significant turnaround from Monday when the Dow plunged 634.76 points in the first trading day after Standard & Poor's downgraded the U.S. one notch from its top AAA credit rating to AA+.

The S&P 500 rose 53.07, or 4.7 percent, to 1,172.53. The Nasdaq composite index rose 124.83, or 5.3 percent, to 2,482.52.

At first, markets reacted much differently to the Fed's statement. Stocks fell after the Fed's 2:15 p.m. EDT statement. Gold surged to more than $1,774 per ounce. The yield on the 10-year Treasury note briefly touched a record low of 2.03 percent.

As stocks rallied, the yield on the 10-year Treasury note quickly headed higher. It was at 2.26 percent late Tuesday. A bond's yield drops when its price rises.

Howard Silverblatt, senior index analyst at S&P, called it the "Big Ben turnaround."

The industries that did best on Tuesday were the ones that fell the most on Monday. Financial stocks in the S&P 500 rose 8.2 percent after falling 10 percent Monday. Materials companies, which rely on a stronger global economy for their profits, rose 5.9 percent.

Only seven of the 500 stocks in the index had declines. All 30 stocks in the Dow rose. Bank of America Corp., which was down more than 20 percent Monday, rose 16.7 percent, the most of any stock in the Dow. Aluminum maker Alcoa Inc. was up 8 percent.

Technology company MEMC Electronic Materials Inc. led the S&P 500 higher, gaining 19.1 percent.

Boosting the stock market isn't one of the Fed's jobs, but that hasn't stopped investors from parsing every word of the statements made by the Fed and its chairman, Ben Bernanke.

The Fed's mandate is to keep prices stable and promote low unemployment, not boost stocks. But a stock dive after Fed comments has happened before. On June 3, the stock market suffered a late-day dive when Bernanke spoke in public at a conference. Investors said they were looking for a hint of new plans to spur economic growth. When that didn't come, all three major indexes sank.

After Bernanke outlined the plan for a second round of quantitative easing in August 2010, the S&P 500 index gained 28 percent over eight months. Investors pointed to that rebound as evidence that quantitative easing worked -- and so did Bernanke. This sentiment led some people to believe that if stocks fall too far, the Fed would come to the rescue.

The Fed said in its statement Tuesday that it expects "a somewhat slower pace of recovery over coming quarters." It also said that temporary factors, such as the high price of gasoline this spring and Japan's March earthquake and tsunami, were only part of the reason for the weaker economy.

Economists now believe there is a greater chance of a U.S. recession because the economy grew much more slowly in the first half of 2011 than previously thought. The economy grew at its slowest pace in the first half of 2011 since the recession ended in June 2009. The manufacturing and services industries barely grew in July. The unemployment rate remains above 9 percent, despite the 154,000 jobs added in the private sector in July.

Economies across the globe are also struggling.

Worries are growing that Spain or Italy could become the next European country to be unable to repay its debt. High inflation in less-developed countries, which have been the world's main economic engine through the recovery, is another concern. China's inflation rose to a 37-month high in July.

Those economic concerns have pulled attention away from stronger corporate earnings this spring.

Dish Network Corp.'s reported Tuesday that its second-quarter net income rose 30 percent to $334.8 million on stronger revenue. Among the 441 companies in the S&P 500 index that have already reported their second-quarter earnings, profits are up 12 percent from a year ago.

The housing market, though, remains weak. Homebuilder Beazer Homes USA Inc. said its loss widened last quarter after it closed on fewer homes.

Consolidated trading volume was heavy, at 9.2 billion shares. Nearly 12 stocks rose for every one that fell on the New York Stock Exchange.

 

[bigdog]

Source: http://finance.yahoo.com

Back to reality for the stock market ”” and back down.

Wall Street focused Wednesday on the bleak landscape ahead for the economy and sold off, wiping out the big gains from a day earlier and then some. The Dow Jones industrial average closed down 519 points.

The selling was intensified by worries about debt problems in Europe.

On Tuesday, the Federal Reserve said it planned to keep interest rates ultra-low for two more years. After some initial confusion, the stock market staged a huge comeback and had one of its best days.

But the interest-rate news proved to be a distraction. The Fed made the pledge because it sees almost no chance that the economy will improve substantially by 2013, and when investors focused on that, they dumped stocks again.

"Now it gets back to the fundamentals," said Mark Lamkin, founder of Lamkin Wealth Management, which manages $215 million.

The Dow closed at 10,719.94, down 4.6 percent for the day. By points, it was the ninth-steepest decline for the market. The Dow has now lost more than 2,000 points in less than three weeks.

Wednesday was another day marked by big moves. The Dow was down more than 300 points within minutes of the opening bell. It recovered some of that loss, then drifted steadily lower in the last two hours.

The NYSE DOW NYSE DOW closed LOWER -519.83 points -4.62% on Wednesday August 10
Sym .......Last .......Change..........
Dow 10,719.94 -519.83 -4.62%
Nasdaq 2,381.05 -101.47 -4.09%
S&P 500 1,120.76 -51.77 -4.42%
30-yr Bond 3.5380% -0.0350

NYSE Volume 9,313,036,000 (prior 10,473,992,000)
Nasdaq Volume 3,465,336,500 (prior 3,885,114,500)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,007.16 -157.76 -3.05%
DAX 5,613.42 -303.66 -5.13%
CAC 40 3,002.99 -173.20 -5.45%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,207.40 +110.70 +2.70%
Shanghai Comp 2,549.18 +23.11 +0.91%
Taiwan We... 7,736.32 +243.20 +3.25%
Nikkei 225 9,038.74 +94.26 +1.05%
Hang Seng 19,783.67 +452.97 +2.34%
Straits Times 2,821.09 -62.91 -2.18%

http://my.news.yahoo.com/stocks-resume-sell-off-dow-205040972.html

Stocks resume sell-off; Dow finishes down 519

Wall Street remembers a world of problems, and Dow plummets again _ now down 2,000 in 3 weeks

By Stan Choe, AP Business Writer | AP

NEW YORK (AP) -- Back to reality for the stock market ”” and back down.

Wall Street focused Wednesday on the bleak landscape ahead for the economy and sold off, wiping out the big gains from a day earlier and then some. The Dow Jones industrial average closed down 519 points.

The selling was intensified by worries about debt problems in Europe.

On Tuesday, the Federal Reserve said it planned to keep interest rates ultra-low for two more years. After some initial confusion, the stock market staged a huge comeback and had one of its best days.

But the interest-rate news proved to be a distraction. The Fed made the pledge because it sees almost no chance that the economy will improve substantially by 2013, and when investors focused on that, they dumped stocks again.

"Now it gets back to the fundamentals," said Mark Lamkin, founder of Lamkin Wealth Management, which manages $215 million.

The Dow closed at 10,719.94, down 4.6 percent for the day. By points, it was the ninth-steepest decline for the market. The Dow has now lost more than 2,000 points in less than three weeks.

Wednesday was another day marked by big moves. The Dow was down more than 300 points within minutes of the opening bell. It recovered some of that loss, then drifted steadily lower in the last two hours.

The market has traded that way for two weeks, lurching up and down. The most extreme example was Tuesday, when the Dow swung more than 600 points in the one hour and 45 minutes after the Fed's statement.

The stomach-churning highs and lows are reminiscent of the fall of 2008, the depths of the financial crisis, when swings of 800 or even 1,000 points in day were not unheard of.

Computerized trading systems ”” programmed to analyze charts, capitalize on the tiniest changes in price and execute trades with no human intervention ”” are making the market rougher.

High-frequency trading programs make up about half of the trades in a normal market day but 70 percent or more on a volatile one. The programs pounce on stock changes to make just slivers of a penny but do it so often that it adds up to real dollars.

Other investors also use charts and market indicators to make trades based on market momentum. The bet is that if the market is rising, it will keep rising, and if it's falling, it will keep falling.

More investors are turning to this strategy because the sudden slowdown in the economy has left them unable to judge companies based on their fundamentals, like projected profits. The more people use a momentum strategy, the faster the decline.

The S&P 500 finished the day down 4.4 percent and the Nasdaq composite index down 4.1 percent.

Financial stocks led the market lower. Bank of America and Citigroup each lost more than 10 percent of their market value. Wall Street is worried because it doesn't know how badly American banks might be hurt by Europe's debt problems.

Investors fear Italy and Spain will be the next countries unable to repay their debts. The European financial system has been battered by fears about banks holding bonds of heavily indebted countries such as Greece and Portugal.

"It's the same game of Old Maid playing out in Europe that was played out here during the subprime mortgage crisis," said Quincy Krosby, an economist and market strategist with Prudential Financial.

The fear is that if European governments default on their bonds, it will hurt the European banks that own them. That could start a chain reaction that hurts the United States, because large U.S. banks own European bank debt.

Europe is also a big market for U.S. companies. It accounted for about 29 percent of foreign sales for S&P 500 companies last year.

France came under pressure Wednesday amid concerns that it could become the next country to lose its top AAA rating. The cost of insuring against a default of French government debt hit a record, according to data from Markit.

In Asia, the concern is that higher inflation in China could lead to slower growth. China, Brazil and other less-developed countries have provided the strongest economic growth since the world began to recover from recession in 2009.

Gold rose above $1,800 per ounce for the first time as more money poured into investments considered safe at a volatile time for the financial markets. Gold closed up about $41 at $1,784.

The 10-year Treasury note, which has also served as a haven, also rose sharply. Its yield fell to 2.11 percent from 2.26 percent late Tuesday. It had reached a record low of 2.03 percent on Tuesday. A bond's yield falls when its price rises.

Investors have bought U.S. government debt even after S&P stripped the United States of its top credit rating, AAA, late last week.

Nearly three stocks fell for every one that rose on the New York Stock Exchange. Consolidated trading volume was heavier than usual, 8.3 billion shares. In July, average daily volume was less than half that. On Monday, it was 9.9 billion, the highest since September 2008.

 

[bigdog]

Source: http://finance.yahoo.com

Lurching higher in its week of whiplash, Wall Street recorded one of its biggest gains of all time Thursday after investors seized on a few signs that the economy might just be able to avoid a new recession.

The Dow Jones industrial average soared 423 points. It had already fallen 634 points Monday, risen 429 Tuesday and fallen 519 Wednesday. Never before has the Dow had four 400-point swings in a row.

The pieces of news that sent Wall Street rocketing higher were not exactly blockbusters: Cisco Systems said its profit was better than expected, the job market got a little better, and France tried to raise confidence in its shaken banking system.

But this is a week in which any move by the market -- higher or lower -- seems to touch off an investor stampede. So it was on Thursday, when stocks shot higher at the opening bell and never turned around.

Carlton Neel, who manages about $2 billion as a senior portfolio manager at Virtus Investment Partners, said investors are so scared of being late to a rally or a sell-off that they are trading in herds.

"Fear tends to be a much more powerful emotion, and the sell-offs tend to be more violent than the rallies," he said. "But people are worried about missing the bottom, so you will have a few melt-ups along the way."

The four days of trading this week have been the wildest for the market since the financial crisis during the fall of 2008. Each day has instantly taken a place in Wall Street history. The Dow's losses on Monday and Wednesday were its sixth- and ninth-largest by points, and its gains on Tuesday and Thursday were the 10th- and 11th-largest.

The Standard & Poor's 500 index has also risen or fallen at least 4 percent each day. That has not happened on four consecutive days since November 2008, the depths of the crisis.

The NYSE DOW NYSE DOW closed HIGHER +423.37 points +3.95% on Thursday August 11
Sym .......Last .......Change..........
Dow 11,143.31 +423.37 +3.95%
Nasdaq 2,492.68 +111.63 +4.69%
S&P 500 1,172.64 +51.88 +4.63%
30-yr Bond 3.7870% +0.2490

NYSE Volume 7,980,034,000 (prior 9,313,036,000)
Nasdaq Volume 3,202,898,500 (prior 3,465,336,500)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,162.83 +155.67 +3.11%
DAX 5,797.66 +184.24 +3.28%
CAC 40 3,089.66 +86.67 +2.89%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,203.50 -3.90 -0.09%
Shanghai Comp 2,581.51 +32.33 +1.27%
Taiwan We... 7,719.09 -17.23 -0.22%
Nikkei 225 8,981.94 -56.80 -0.63%
Hang Seng 19,595.14 -188.53 -0.95%
Straits Times 2,793.01 -28.08 -1.00%

http://finance.yahoo.com/news/Dow-up-423-as-Wall-Street-apf-1307028421.html?x=0

Dow up 423 as Wall Street whipsaws again

Wall Street rockets higher as wildest week since '08 continues; Dow adds 422

Stan Choe, AP Business Writer, On Thursday August 11, 2011, 6:09 pm

NEW YORK (AP) -- Lurching higher in its week of whiplash, Wall Street recorded one of its biggest gains of all time Thursday after investors seized on a few signs that the economy might just be able to avoid a new recession.

The Dow Jones industrial average soared 423 points. It had already fallen 634 points Monday, risen 429 Tuesday and fallen 519 Wednesday. Never before has the Dow had four 400-point swings in a row.

The pieces of news that sent Wall Street rocketing higher were not exactly blockbusters: Cisco Systems said its profit was better than expected, the job market got a little better, and France tried to raise confidence in its shaken banking system.

But this is a week in which any move by the market -- higher or lower -- seems to touch off an investor stampede. So it was on Thursday, when stocks shot higher at the opening bell and never turned around.

Carlton Neel, who manages about $2 billion as a senior portfolio manager at Virtus Investment Partners, said investors are so scared of being late to a rally or a sell-off that they are trading in herds.

"Fear tends to be a much more powerful emotion, and the sell-offs tend to be more violent than the rallies," he said. "But people are worried about missing the bottom, so you will have a few melt-ups along the way."

The four days of trading this week have been the wildest for the market since the financial crisis during the fall of 2008. Each day has instantly taken a place in Wall Street history. The Dow's losses on Monday and Wednesday were its sixth- and ninth-largest by points, and its gains on Tuesday and Thursday were the 10th- and 11th-largest.

The Standard & Poor's 500 index has also risen or fallen at least 4 percent each day. That has not happened on four consecutive days since November 2008, the depths of the crisis.

It's only the third time since 1934, said Kevin Pleines, an analyst at Birinyi Associates. The first was October 1987 -- including the day known as Black Monday, when the S&P plunged more than 20 percent.

On Thursday, American investors got an encouraging report before the market opened when European stock markets turned around their losses and had one of their best days in recent weeks.

The leaders of Germany and France, the biggest economies of the nations that use the euro currency, announced they will meet Tuesday to discuss the financial crisis on the continent.

The stocks of French banks have been hammered because of concerns they will be hit with massive losses from European sovereign debt. One European nation after another has struggled with debt, with Spain and Italy the latest.

France is trying to assure financial markets that it will not be downgraded from AAA, as the United States was. All three leading credit rating agencies reaffirmed the top rating for France.

An hour before the U.S. markets opened, the government reported that fewer Americans joined the unemployment line last week. The number filing for unemployment benefits fell below 400,000, the first time that has happened since April.

When the opening bell rang, technology stocks led the market higher. Cisco Systems, a maker of computer equipment, rose more than 15 percent after it reported profit that was better than Wall Street expected. It also said its revenue this quarter would also be better than expected.

The Dow finished at 11,143.31, up 423.37 points, or about 4 percent. The S&P 500 finished up 4.6 percent and the Nasdaq composite index 4.7 percent.

It was three weeks ago, on July 22, when the stock market began a long losing streak. Investors were worried mostly about the showdown in Washington over whether to raise the nation's borrowing limit.

Then came one sign after another that economic growth was much slower than analysts had thought, in addition to growing worries about the debt crisis in Europe and the stability of European banks.

During those three weeks, the Dow is down almost 1,600 points, or about 12 percent. It is still up 70 percent since its post-meltdown low of March 9, 2009.

President Barack Obama acknowledged this week's wild market swings and made another attempt to calm the nerves of Americans who have watched their retirement accounts and other investments shrivel since mid-July.

The president toured a plant in Holland, Mich., that makes batteries for hybrid cars and trucks and said he understands that the volatility "makes folks nervous" and has hammered savings accounts.

He reeled off a list of challenges for the economy -- unrest in the Middle East, an earthquake in Japan that disrupted American manufacturing, a European financial crisis that has hit U.S. banks, and lingering damage from the Great Recession.

But he declared: "There is nothing wrong with our country. There is something wrong with our politics."

Standard & Poor's cited dysfunction in the American political system, not just the nation's long-term debt, when it stripped the United States of its top-flight AAA credit rating last Friday.

Even after the downgrade, investors have found U.S. Treasury bonds and bills irresistible, seeing them as a haven of safety during an uncertain time. The demand has pushed up the price of U.S. debt, which has lowered yields.

On Thursday, the Treasury sold $16 billion worth of 30-year bonds at a 3.75 percent yield, the lowest borrowing rate for the government on that security since March 2009.

Yields for shorter-term American debt rose, but that appeared to be a response to the huge rally in stocks. Yields usually rise when the stock market has a big day because it takes a bigger rate of return to get investors interested in bonds.

Gold fell $32.80 per ounce to $1,751.50 Thursday. It had rocketed above $1,800 per ounce for the first time on Wednesday as stock markets tumbled around the world.

 

[bigdog]

Source: http://finance.yahoo.com

The wildest week on Wall Street since the financial crisis in 2008 ended with a second day of gains.

The Dow Jones industrial average finished Friday with a gain of 125 points. Most other times it would have been a fairly big day. By this week's standards, it was a sleeper. Friday capped a week when the blue-chip index had four 400-point swings in a row for the first time in its 115-year history.

Trading was frantic across financial markets all week. The yield on the 10-year Treasury note hit a record low. Gold briefly topped $1,800 per ounce.

"It was a sharp and violent week in the stock market, but it's my sense that the worst is over," said Michael Kaufler, a portfolio manager at Federated Investors.

Investors reacted to every scrap of news and each whispered rumor. A credit downgrade for the United States. Concerns about European bank solvency. Fears of a possible new recession in the U.S. Word that the Federal Reserve would keep interest rates low for two more years because of slowing growth. A positive retail sales report. Strong earnings from a technology bellwether. Better unemployment news.

The Dow dropped 634 points Monday, its sixth-worst point drop, as investors responded to Standard & Poor's withdrawal of the country's AAA credit rating. It was the first downgrade of U.S. government debt in history. The Dow rose 429 points Tuesday, only to plunge 519 points Wednesday. It surged 423 points on Thursday following a better-than-expected drop in applications for unemployment benefits.

A rebound in retail sales in July pushed the stock market higher Friday as traders looked past a Reuters/University of Michigan survey that found that consumers were pessimistic about their own finances and the economy. The measure of consumer sentiment fell to a 30-year low.

It was the first time since early July that the Dow and S&P index rose for two consecutive days.

The NYSE DOW NYSE DOW closed HIGHER +125.71 points +1.13% on Friday August 12
Sym .......Last .......Change..........
Dow 11,269.02 +125.71 +1.13%
Nasdaq 2,507.98 +15.30 +0.61%
S&P 500 1,178.81 +6.17 +0.53%
30-yr Bond 3.7030% -0.0840

NYSE Volume 5,643,669,500 (prior 7,980,034,000)
Nasdaq Volume 2,252,491,750 (prior 3,202,898,500)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,320.03 +157.20 +3.04%
DAX 5,997.74 +200.08 +3.45%
CAC 40 3,213.88 +124.22 +4.02%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,237.90 +34.40 +0.82%
Shanghai Comp 2,593.17 +11.66 +0.45%
Taiwan We... 7,637.02 -82.07 -1.06%
Nikkei 225 8,963.72 -18.22 -0.20%
Hang Seng 19,620.01 +24.87 +0.13%
Straits Times 2,850.59 +54.37 +1.94%

http://finance.yahoo.com/news/Dow-f...tml?x=0&sec=topStories&pos=main&asset=&ccode=

Dow finishes wild week on an up note

Stocks end wild week with second day of gains despite mixed signals on the economy

Daniel Wagner and David K. Randall, AP Business Writers, On Friday August 12, 2011, 6:52 pm

NEW YORK (AP) -- The wildest week on Wall Street since the financial crisis in 2008 ended with a second day of gains.

The Dow Jones industrial average finished Friday with a gain of 125 points. Most other times it would have been a fairly big day. By this week's standards, it was a sleeper. Friday capped a week when the blue-chip index had four 400-point swings in a row for the first time in its 115-year history.

Trading was frantic across financial markets all week. The yield on the 10-year Treasury note hit a record low. Gold briefly topped $1,800 per ounce.

"It was a sharp and violent week in the stock market, but it's my sense that the worst is over," said Michael Kaufler, a portfolio manager at Federated Investors.

Investors reacted to every scrap of news and each whispered rumor. A credit downgrade for the United States. Concerns about European bank solvency. Fears of a possible new recession in the U.S. Word that the Federal Reserve would keep interest rates low for two more years because of slowing growth. A positive retail sales report. Strong earnings from a technology bellwether. Better unemployment news.

The Dow dropped 634 points Monday, its sixth-worst point drop, as investors responded to Standard & Poor's withdrawal of the country's AAA credit rating. It was the first downgrade of U.S. government debt in history. The Dow rose 429 points Tuesday, only to plunge 519 points Wednesday. It surged 423 points on Thursday following a better-than-expected drop in applications for unemployment benefits.

A rebound in retail sales in July pushed the stock market higher Friday as traders looked past a Reuters/University of Michigan survey that found that consumers were pessimistic about their own finances and the economy. The measure of consumer sentiment fell to a 30-year low.

It was the first time since early July that the Dow and S&P index rose for two consecutive days.

Normally, such a bad consumer survey would have pushed shares sharply lower for the day, said Quincy Krosby, an investment strategist with Prudential Financial.

"But these are not normal times," she said. Market volatility cuts both ways, sending shares way up or way down, Krosby noted. That can cause stock prices to defy economic data.

The strong retail sales added to other bits of more positive data about the economy. The government said last Friday that hiring by companies picked up in July after two dismal months, though employers still are adding jobs too slowly to significantly reduce unemployment. A report Thursday showed applications for unemployment benefits fell to a four-month low. Some analysts believe recently announced layoffs will cause that number to rise in the coming weeks.

Companies that rely on an expanding economy for profits led the Dow higher Friday. Boeing Co., Hewlett-Packard Co. and United Technologies Corp. each rose by 4 percent or more.

A separate government report on Friday showed that businesses increased their stockpiles of everything from raw materials to retail products for the 18th month in a row.

Growing inventories are usually a sign of business confidence. But in June, Americans cut their spending for the first time in nearly two years. If the market's gyrations spook consumers further, people might spend even less just as retailers stock up for the crucial holiday season.

"We are at a turning point," said Bill Hampel, chief economist for the Credit Union National Association. "If the stock market continues to be volatile next week, I would expect a pretty serious effect on consumer confidence."

The Dow finished Friday with a gain of 125.71 points, or 1.1 percent, to 11,269.02. It finished the week down 1.5 percent after being down as much as 6.3 percent.

The broader S&P 500 index rose 6.17 points, or 0.5 percent, to 1,178.81. It finished the week down 1.7 percent. The technology-focused Nasdaq composite rose 15.30, or 0.6 percent, to 2,507.98. It lost 1 percent for the week.

All three major stock indexes are now down more than 10 percent from their April highs. That is a big enough drop to signify what traders call a market correction. A drop of more than 20 percent signifies a bear market.

The market's huge swings were reminiscent of the week of October 13-17, 2008, which came at the height of the financial crisis. The Dow started that week with a gain of 936 points, its largest one-day point gain. Two days later, it fell 733 points on bad economic news. The next day, it gained 401.

Financial stocks continued to slide Friday. Investment bank Morgan Stanley fell 7 percent becuase of concerns about U.S. banks' exposure to the financial crisis in Europe and lawsuits related to poor-quality mortgage securities sold before the financial crisis of 2008. JPMorgan Chase & Co. and Goldman Sachs Group Inc. also fell.

Goodyear Tire & Rubber Co. jumped 7 percent after the company told investors that it expects revenue this quarter to offset its higher raw material costs. The company had said last month that raw material costs might hurt its profits in the second half of the year.

DeVry Inc. plunged nearly 17 percent, the most in the S&P 500, after the company said that student enrollment tumbled this summer. For-profit education companies are under pressure to raise their admissions standards so that students will be more likely to find jobs and pay off their government-backed loans. That has caused their stocks to fall sharply this year.

The yield on the 10-year Treasury note fell to 2.26 percent from 2.34 percent late Thursday. It had fallen to a record low of 2.03 percent earlier in the week.

Two stocks rose for every one that fell on the New York Stock Exchange. Volume was above average at 5 billion shares, but lighter than earlier in the week when it reached 9.7 billion shares, the fourth-highest on record.

9521

 

[bigdog]

Source: http://finance.yahoo.com

The Dow Jones industrial average notched a three-day win streak Monday for the first time in six weeks. A $19 billion corporate buying spree and encouraging economic news from Japan sent the Dow up 213 points and erased its losses from last week.

The return of what's called "Merger Monday" on Wall Street made investors more optimistic about the future. So did a report that Japan's economy shrank less than feared after the earthquake and tsunami there on March 11. That helped ease worries that the U.S. economy may slide into another recession.

The Dow rose 213.88 points, or 1.9 percent to 11,482.90. It has gained 763 points since Thursday. That's the best three-day point gain since it rose 927 in November 2008, during the depths of the financial crisis. The Dow is also up 7.1 percent over the three days, the biggest percentage gain since it rose 9.5 percent the first three days of the bull market in March 2009.

The Standard & Poor's 500 index rose 25.68, or 2.2 percent, to 1,204.49. The Nasdaq composite index rose 47.22, or 1.9 percent, to 2,555.20.

Markets may have stabilized the last three days, but financial analysts warned investors not to assume that stocks have fully settled down after last week's swings. The Dow rose or fell by at least 400 points in four straight days for the first time. The first downgrade of the U.S. credit rating triggered the volatility. It was worsened by concerns that Europe's debt problems are worsening and that the U.S. economy is weakening.

The NYSE DOW NYSE DOW closed HIGHER +213.88 points +1.90% on Monday August 15
Sym .......Last .......Change..........
Dow 11,482.90 +213.88 +1.90%
Nasdaq 2,555.20 +47.22 +1.88%
S&P 500 1,204.49 +25.68 +2.18%
30-yr Bond 3.7470% +0.0440

NYSE Volume 5,063,186,500
Nasdaq Volume 1,977,731,125

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,350.58 +30.55 +0.57%
DAX 6,022.24 +24.50 +0.41%
CAC 40 3,239.06 +25.18 +0.78%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,346.80 +108.90 +2.57%
Shanghai Comp 2,626.77 +33.60 +1.30%
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Stocks rise for third day after acquisition flurry

Stocks rise after Google's $12.5 billion purchase highlights another round of corporate deals

Stan Choe, AP Business Writer, On Monday August 15, 2011, 5:52 pm EDT

NEW YORK (AP) -- The Dow Jones industrial average notched a three-day win streak Monday for the first time in six weeks. A $19 billion corporate buying spree and encouraging economic news from Japan sent the Dow up 213 points and erased its losses from last week.

The return of what's called "Merger Monday" on Wall Street made investors more optimistic about the future. So did a report that Japan's economy shrank less than feared after the earthquake and tsunami there on March 11. That helped ease worries that the U.S. economy may slide into another recession.

The Dow rose 213.88 points, or 1.9 percent to 11,482.90. It has gained 763 points since Thursday. That's the best three-day point gain since it rose 927 in November 2008, during the depths of the financial crisis. The Dow is also up 7.1 percent over the three days, the biggest percentage gain since it rose 9.5 percent the first three days of the bull market in March 2009.

The Standard & Poor's 500 index rose 25.68, or 2.2 percent, to 1,204.49. The Nasdaq composite index rose 47.22, or 1.9 percent, to 2,555.20.

Markets may have stabilized the last three days, but financial analysts warned investors not to assume that stocks have fully settled down after last week's swings. The Dow rose or fell by at least 400 points in four straight days for the first time. The first downgrade of the U.S. credit rating triggered the volatility. It was worsened by concerns that Europe's debt problems are worsening and that the U.S. economy is weakening.

"You might have these moments of quiet, but the debt crisis in Europe did not go away," said John Hailer, chief executive for the U.S. and Asia of Natixis Global Asset Management. "Our issues with the debt, with what our tax policy is going to be going forward, our unemployment did not go away."

"We are probably going to have to look at some very different levels of volatility than what a lot of investors grew up with over the last 25 to 30 years," he said.

A period of relative stability has been common in past volatile markets. In 2008, stocks plunged between mid-September and mid-November. From mid-November until the beginning of January 2009, the Dow was in a lull of sorts. It ratcheted up and down, mostly in the high 8,000 range. But in early January 2009, it began to plunge again and finally hit bottom at 6,547 on March 9.

Despite its three-day gain, the Dow remains down 9.8 percent since its most recent high on July 21 and down 10.4 percent since its 2011 high set on April 29.

More swings could come this week. Leaders of France and Germany meet Tuesday to discuss Europe's debt problems. Spain and other countries have borrowed so much that they may need help to repay their bills. Investors on Tuesday will get an update on how Spain's economy did during the second quarter.

Corporate deals dominated the news, as companies followed a years-long practice of announcing acquisitions on a Monday. The biggest was Google Inc.'s $12.5 billion cash purchase of wireless phone maker Motorola Mobility Holdings Inc. It is also the biggest acquisition in Google's history. No. 2 was its $3.2 billion purchase of DoubleClick in 2008. Motorola Mobility's stock jumped percent 55.8 percent. Google fell 1.2 percent.

Among other deals: Time Warner Cable Inc. said it will pay $3 billion in cash for Insight Communications Co., which has more than 750,000 cable customers in the Midwest. Agribusiness conglomerate Cargill said it will buy animal nutrition company Provimi of the Netherlands for $2.16 billion. And in the energy industry, offshore driller Transocean Ltd. said it will buy Aker Drilling of Norway for $1.43 billion in cash.

Companies across the United States have accumulated a record amount of cash since the recession ended. They have increased their cash reserves every quarter for more than two years. Those in the S&P 500 index had a total of $963.3 billion at the end of March, according to the most recent data from Standard & Poor's.

Investors have been waiting for companies to use some of that cash on acquisitions, dividend increases and stock buybacks. Many market strategists believe that companies are more confident about the future if they're willing to buy other businesses. So a series of acquisition announcements tends to send stocks higher.

The growing cash hoard has been the result of strong profits. Companies have kept costs low by being slow to hire. Revenue, meanwhile, is growing, particularly from overseas customers. For the 460 companies in the S&P 500 that have reported second-quarter results, earnings were up 12 percent from a year ago.

It was the busiest day for acquisitions since July 11, when Express Scripts said it would buy Medco Health Solutions for $29.1 billion in a combination of the country's largest pharmacy benefits managers. The total value of deals targeting U.S. companies has climbed to $771 billion this year, according to Dealogic. That's up 55 percent from $498 billion at the same point last year.

Some companies are looking to pare back. Bank of America Corp. said it will sell its Canadian credit-card business to TD Bank Group. The bank will also get out of the credit card business in Britain and Ireland. The deals follow others that Bank of America made to move out of foreign credit cards, and they should help the company improve its balance sheet

Bank of America rose 7.9 percent, part of a rally for the financial industry. Financial stocks in the S&P 500 rose 3.2 percent as a group.

Energy stocks in the index rose 3.4 percent after crude oil climbed $2.50 per barrel to settle at $87.88.

Asian and European markets rose earlier after Japan said its economy shrank at just a 1.3 percent annual rate from April through June. That was less than half the drop that economists expected following the earthquake, tsunami and nuclear crisis that struck the country in March.

Still, investors have more reason to worry about the weak U.S. economy.

Manufacturers in New York told the Federal Reserve they're increasingly pessimistic about growth. Manufacturing has been one of the strongest parts of the economy since the recession ended in 2009, but growth began to slow in March. Manufacturing nationwide barely grew in July.

Cosmetics company Estee Lauder Cos. fell 6.5 percent after it forecast earnings for the upcoming year that were below Wall Street's expectations. It also said its net income rose 72 percent last quarter on strong sales growth to China, Russia and the Middle East.

Lowe's Cos., the second-largest home improvement retailer, rose 0.9 percent after it said its net income was roughly flat last quarter on a 1 percent rise in revenue.

More than 10 stocks rose for every one that fell on the New York Stock Exchange. Trading volume at 4.5 billion shares was below the 9 billion it reached last Monday and Tuesday. Volume was close to its average over the last year of 4.3 billion shares.