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greeney2
B.V. Info-a-holic
Joined: Sep 28, 2001
Posts: 9864
Location: USA
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 Posted: Thu Nov 06, 2008 12:03 pm Post subject: Stocks tank with Obama election! |
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All everyone has said for 2 months is the Bush Administration killed the economy, and McCain would have been 8 more years of the same thing. Everyone said WE NEED A CHANGE! Well you voted for it and you got it last night, and look what happened. If the Bush Era is ending McCain along with it, than the Obama election was thought to have been the solution. His speech was loaded with dissclaimers and excapes, a lot of we may not be able's.
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Stocks plunge anew as recession worries resurface
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Digg Facebook Newsvine del.icio.us Reddit StumbleUpon Technorati Yahoo! Bookmarks Print By SARA LEPRO and TIM PARADIS, AP Business Writer Sara Lepro And Tim Paradis, Ap Business Writer – 2 hrs 22 mins ago Play Video AP – Stocks plunge anew on recession worries
Slideshow: Stock Markets Play Video Video: Consumer Bankruptcies ABC News Related Quotes Symbol Price Change
BAC 21.75 -2.78
C 12.63 -2.05
GS 87.43 -7.57
LEH 0.00 0.00
MRK 28.72 -2.41
Reuters – A trader works on the floor of the New York Stock Exchange November 5, 2008. (Lucas Jackson/Reuters) NEW YORK – A case of postelection nerves sent Wall Street plunging Wednesday as investors, looking past Barack Obama's presidential victory, returned to their fears of a deep and protracted recession. Volatility swept over the market again, with the Dow Jones industrials falling nearly 500 points and all the major indexes tumbling more than 5 percent.
The market was widely expected to give back some gains after a runup that lifted the Standard & Poor's 500 index more than 18 percent and that gave the Dow its best weekly advance in 34 years; moreover, many analysts had warned that Wall Street faced more turbulence after two months of devastating losses.
But investors lost their recent confidence about the economy and began dumping stocks again.
"The market has really gotten ahead of itself, and falsely priced in that this recession wasn't going to be as prolonged as thought," said Ryan Larson, head of equity trading at Voyageur Asset Management, a subsidiary of RBC Dain Rauscher. "Regardless of who won the White House, these problems are not going away."
"We're in a really bad recession, period," he said. "People are locking in profits and realizing we're not out of the woods."
Beyond broad economic concerns, worries about the financial sector intensified after Goldman Sachs Group Inc. began to notify about 3,200 employees globally that they have been lost their jobs as part of a broader plan to slash 10 percent of the investment bank's work force, a person familiar with the situation said. The cuts were first reported last month. Goldman fell 8 percent, while other financial names also fell; Citigroup Inc. dropped 14 percent.
Commodities stocks also fell after steelmaker ArcelorMittal said it would slash production because of weakening demand. Its stock plunged 21.5 percent.
Although the market expected Obama to win the election, as the session wore on investors were clearly worrying about the weakness of the economy and pondered what the Obama administration might do. Analysts said the market is already anxious about who Obama selects as the next Treasury Secretary, as well as who he picks for other Cabinet positions.
"The celebration is over. Today we saw a bit of reality," said Al Goldman, chief market strategist at Wachovia Securities in St. Louis. "President-elect Obama is coming into a situation with limited experience, having to handle an economy in serious trouble, a couple of wars and terrorism. It's an extremely tough job."
Analysts said investors were also uneasy in advance of the Labor Department's October employment report, to be issued Friday. Economists, on average, expect a 200,000 drop in payrolls, according to Thomson/IFR.
Late-day selling by hedge funds helped deepen the market's losses during the last hour. More selling by the funds is expected to weigh on the market ahead of a Nov. 15 cutoff for shareholders to notify fund managers of their intent to cash out investments before year-end.
The Dow fell 486.01, or 5.05 percent, to 9,139.27. The blue chips had risen more than 300 on Tuesday, and last week rose 11.3 percent, their biggest weekly gain since 1974.
The S&P 500 index fell 52.98, or 5.27 percent, to 952.77. Through the six sessions that ended Tuesday, the index, the one most closely watched by market professionals, rose 18.3 percent.
The Nasdaq composite index fell 98.48, or 5.53 percent, to 1,681.64, while the Russell 2000 index of smaller companies fell 31.33, or 5.74 percent, to 514.64.
Declining issues outnumbered advancers by about 4 to 1 on the New York Stock Exchange, where consolidated volume came to a light 5.29 billion shares compared with 5.45 billion shares traded Tuesday.
"We're seeing people come into the market at the last minute and the low volume exaggerates moves to the downside and the upside. That really scares the heck out people," Goldman said.
Wednesday's trading showed that the market is living up to expectations of continued volatility as it tries to recover from the devastating losses of the last two months.
Bill Stone, chief investment strategist at PNC Wealth Management, said the uncertainty over the direction the government's financial bailout plan will take under the next administration likely weighed on financial stocks Wednesday.
Analysts agree that Obama's most immediate priority will be dealing with the nation's financial crisis and deciding how to further implement the $700 billion rescue package passed by Congress last month.
Goldman said trading could remain turbulent as investors begin assessing the shape and direction of Obama's forthcoming economic policies.
"The market has to go through a period of figuring out if they are going to gain confidence in Obama and the Congress or lose it," he said.
Obama's victory means that industries such as oil and gas producers, utilities and pharmaceuticals may face greater regulation and even taxes, while labor unions and automakers are expected to benefit.
In addition, banks, insurance companies, hedge funds and the rest of the financial sector will almost certainly face attempts at a regulatory overhaul by the Democratic Congress next year.
Among financials, Goldman Sachs fell $7.57, or 8 percent, to $87.43. Citigroup fell $2.05, or 14 percent, to $12.63, while Bank of America Corp. dropped $2.78, or 11.3 percent, to $21.75.
Other sectors that are being closely watched in light of the election results are pharmaceuticals and alternative energy, analysts said.
Merck & Co. fell $2.41, or 7.7 percent, to $28.72. Pfizer Inc., meanwhile, dipped $1.09, or 6 percent, to $17. SunTech Power Holdings Co. was among the alternative energy stocks that declined, falling $6.82, or 21.5 percent, to $24.88.
In addition to monitoring the direction the next administration will take, investors continue to heed the state of the credit markets. The paralysis in the credit markets that began after the bankruptcy of Lehman Brothers Holdings Inc. in mid-September has been alleviated somewhat by a series of government interventions, but they still show some signs of strain.
Banks continued to ratchet down the rates they charge one another for borrowing on Wednesday, but the key interbank lending rate — the London Interbank Offered Rate, or Libor — remains well above the Federal Reserve's target interest rate of 1 percent. Libor for three-month dollar loans fell to 2.51 percent from 2.71 percent Tuesday.
And the bid for Treasury bills remains high. The three-month bill, considered one of the safest assets around, fell to 0.42 percent from 0.48 percent late Tuesday. A low yield indicates high demand.
The yield on the benchmark 10-year Treasury note was unchanged at 3.73 percent.
The dollar was mostly lower against other major currencies, while gold prices fell.
Light, sweet crude dropped $5.23 to settle at $65.30 a barrel on the New York Mercantile Exchange.
In Asian trading, Japan's Nikkei index rose 4.46 percent, and Hong Kong's Hang Seng Index rose 3.17 percent. Britain's FTSE 100 fell 2.34 percent, Germany's DAX index fell 2.11 percent, and France's CAC-40 fell 1.98 percent. |
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evutch
B.V. Info Seeker
Joined: Sep 24, 2006
Posts: 2742
Location: the lions den, reptiles lair, and satans playground-DC
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| Posted: Fri Nov 07, 2008 10:20 am Post subject: |
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STOCKS TANK WHILE BUSH CHENEY ARE STILL AT THE HELM IN OFFICE!!!!
REPUBLICANS LEAVE LEGACY OF CUT, BURN, AND RUN OUT ON AMERICAN SYSTEM!
MESS LEFT IN WAKE OF CRONYISM, AND INSIDE SPECULATION INCLUDING CONFLICT OF INTERESTS WILL LAST YEARS!
EIGHT YEARS OF CRIMINAL MISHANDLING COME HOME TO ROOST.
BUSH SHOULD BE CHARGED WITH CRIMES, BUT WOULD GET OFF ON MENTAL RETARATION, WILL PROBABLY MOVE OUT OF COUNTRY ANYWAYS, TO HIS NEW MULTI THOUSAND ACRE PLACE IN SOUTH AMERICA. |
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Nesaie
B.V. Info-a-holic
Joined: Aug 04, 2005
Posts: 10412
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| Posted: Fri Nov 07, 2008 1:36 pm Post subject: |
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Everyone Greeney? Why are you so partisan? I posted a list of politicians who all had a hand in this economic crisis a while ago. This is outside partisanship. What this is about is lobbyists working for the banking industries and Fannie & Freddie, buying politicians to rewrite the rules. The SEC rewrote the rules a few years back too.
This bailout has been another ripoff of the American people. The bankers used that money to party and give their execs bonuses. Meanwhile, they didn't work and the corporations are still failing. Not only that, they're not required to use that money to lend to people and small businesses. That was the whole reason we were told, for the emergency bailout. Those...those...I can't use those words here.
Bush, Obama and McCain advocated for the bailout. They are all to blame for that one.
Now what is worse is Obama's selection of Chief of Staff who used to be an "investment" banker. Emanuel is so dirty in the cause of this crisis it isn't even funny. Not only that, he is a traitor who didn't serve in the US military, but instead served for Israel. He should be kicked out of the US. He is anti-American and a thief.
I voted for my republican congresscritter for two reasons. I knew Obama was already (s)elected, so we need as many republicans in congress and the senate as possible. Two, he voted against the bailout twice. Unfortunately, I still don't know if he won yet or not.  |
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screamzero
B.V. Info Seeker
Joined: Feb 08, 2008
Posts: 2428
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| Posted: Fri Nov 07, 2008 5:06 pm Post subject: |
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It's all right mine two Comrades! Let not you heart be t-r-roubled! Just apply at your nearest Federal Supply Mart for your entitlements. You'll be so overwhelmed w/ Barack "The Government" Obama's generosity that you won't even know what hit ya...but I must say, good for you Nesaei...at least you got the vote right...you still got sh^t in your eye, Evulchture.  ...you need to handle that. It looks like mental "retaration". |
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