Wall St. Suffers Worst Day in Two Years

[paineinthearse]

http://news.yahoo.com/news?tmpl=story&u=/ap/20050415/ap_on_bi_st_ma_re/wall_street

Wall St. Suffers Worst Day in Two Years

12 minutes ago

By MICHAEL J. MARTINEZ, AP Business Writer

NEW YORK - Wall Street suffered its worst single day in nearly two years Friday, with the Dow Jones industrial average falling 191 points for its third straight triple-digit loss. Deepening concerns over economic growth and higher prices led to the worst week of trading since August. An already uneasy market began the biggest one-day selloff since May 19, 2003, after the Federal Reserve reported drops in manufacturing and other industrial production, and a Labor Department report showed higher oil costs driving up import prices.

The selloff was bolstered by lower-than-expected profits from IBM Corp., which led to fears that technology spending would be substantially worse than expected this year. Strong earnings from General Electric Co. and Citigroup Inc. were overlooked, but analysts said earnings would nonetheless be a key factor in overcoming the recent slump. "Earnings are really the only hope for this market," said Brian Pears, head equity trader at Victory Capital Management in Cleveland. "If, on the whole, earnings can go up, then we might be able to overcome oil and inflation and all the other things."

According to preliminary calculations, the Dow fell 191.24, or 1.86 percent, to 10,087.51, after falling 125 points Thursday and 104 points Wednesday. It was the Dow's lowest close since Nov. 2. Broader stock indicators also lost considerable ground. The Nasdaq composite index dropped 38.56, or 1.98 percent, to 1,908.15 for its worst showing since Oct. 25. The Standard & Poor's 500 index was down 19.43, or 1.67 percent, at 1,142.62, its lowest level since Nov. 3.

All three indexes set five-month lows for the second straight session, prompted by disappointing earnings in the tech sector and questions about slowing economic growth. With Friday's losses, it was the first time the Dow lost 100 points three sessions in a row since late January 2003. For the week, the Dow lost 3.57 percent, the S&P 500 was down 3.27 percent, and the Nasdaq tumbled 4.56 percent. The major indexes are also at their lowest points of 2005, with the Nasdaq down 12.29 percent, the Dow falling 6.45 percent and the S&P having lost 5.72 percent.

more...........
___

On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

[Skittles]

1. it is fixing to go below 10,000

confidence in the bush economy

[redqueen]

2. hehehe... 'fixing'

You're such a Texan!

I say it too. :D

[Wright Patman]

6. I'm fixin' to be sick

I can see myself not opening my quarterly statements next time around, much as I wouldn't do after 9-11 for a couple of years.

I just heard a financial guru (only half in jest) say that the reason the pharmaceutical stocks are doing relatively well is that everyone is going to have to be heavily medicated for what is about to occur.

[redqueen]

14. Aww I'm sorry.

I had to cash in my 401k to pay off credit card debt. Luckily BEFORE the dot com crash.

Maybe it's time to shift your portfolio into pharma stocks? :shrug:

[VegasWolf]

80. Yeah, I've been playing with pharma stocks. I also did a lot of bargin

hunting late Friday. Fingers crossed it pays off.

[barb162]

26. I always like to see a good joke come out of things like this.

[llmart]

44. I received my quarterly 401K report today....

and it made me sick!

[susanna]

59. Yesterday for me...

...and I'm sick with ya.

[bdot]

72. at least you have one.

I don't get 401K anymore.

[AuntiBush]

90. Late Husband Rolls Over In Grave, Again!

If he only knew; all the double/triple shifts he worked paying into our 401K plan, just in case he went before me assuming I'd be "taken care of."

It plummeted so badly, it's not worthy of mention. Disgusting.

Now, after never missing 1 payment, always paying on time or before, a credit card company sent me a letter today out of the blue saying they want everything in full or they're going to bill me in monthly installments 3 times the regular amount. When asked "why," they claim they're (my words) downsizing.

I have 30 days to figure out where to come up w/the money. What a greedy, evil world we live in today. Thanks Repuks! Bunch of fools.

[Laurab]

47. If they're not already heavily medicated

for what has already occurred. And that's probably less than half in jest....

[nadinbrzezinski]

3. It has been a TERRIBLE week

it is not just today

If it continues doing this over the next week or two... hang on... the crash may be here

[ClintonTyree]

10. Larry Krudlow says everything is fine.....

on CNBC... what a dick. This guy hasn't been in touch with reality in so long it's pathetic. Does ANYONE take him seriously any more? What a fucking tool. :eyes:

[Melynn]

82. Larry Krudlow is just a BushCo shrill.

Mr. Crud-low is a shameless mouth piece for the neo-cons. I bet even BushCo laughs at Larry for being such a mindless suck-up.

[lovuian]

4. Finally REALITY hit!!! Americans are hurting!!!

And Bush is going to look like an idiot with private acccounts!!!

[ClintonTyree]

7. He said today that, "he's open to suggestions"......

how about resigning? That's MY suggestion for the bush baby.

[barb162]

27. impeaching is more fun

[Just Me]

32. If a leadership has proven itself willing to deceive "the people",...

,...manipulate "the people" and USE "the people" in order to empower a very, very small powerful and wealthy minority OVER "the people",...and that leadership conspired to find ways to violate any laws (via creative legalese) in order to achieve its goal to empower a very, very small powerful and wealthy minority OVER "the people",...would that be grounds for impeachment?

If not,...why do we bother to call ourselves a "democracy" or even a "democratic republic"? :shrug:

The foregoing is a tyranny,...no matter which angle from which one views it. What's really disgusting is that, the foregoing tyranny has been usurping and oppressing humanity, around the globe, on and off, for the last sixty years, more or less.

The TYRANTS "created" loopholes, acted in evil disregard of morals or ethics or "American values",...and are in charge of this country. :scared:

How much abuse does it take for an evil body to be subject to justice? :shrug:

Even though boundaries have been crossed for over half a century, the "rule of law" is still being defied by those who RULE this country.

How much abuse does it take for evil to be ended? :shrug:

Incredible how far and wide-spread these people have delivered oppression, poverty, destruction, desperation, hopelessness and death. It's beyond gross,...it's beyond any characterization defined by language.

[barb162]

75. we have a republic, but what I notice a lot these days is that

the representatives almost all seem to be bought by the corporations, even the democrats. 73 democrats voted for that bankruptcy bill this past week along with all the republicans. The stock markets are all tanking, consumer confidence went down a hell of a lot this past week, there are more and more layoffs, there's virtually no job growth despite Bush's vaunted claims that the tax cuts a few years ago would produce 320,000 jobs a month, Bush is talking even more tax cuts, the national debt and deficit numbers are gargantuan by any standard, jobs are being offshored like crazy, and what is Congress doing? What are they doing? WHat is Bush doing? Even the Republicans in Congress should be angry at this situation. The situation in Washington has become insane. Maybe they can talk about the filibuster as the dollar tanks more

[barb162]

81. "How much abuse... for an evil body..."

How do we remove the Congress and this administration when they take anti-voter stances consistently and vote pro-corporation. The defense industry wanted the Iraq war. The pharmaceuticals wanted full price drugs and no selling by Canada to Americans, etc. The credit card companies wanted anti-consumer legislation and got it.I don't know how to deal with this anymore; that is, when the people we elect are bought off by business.

[Barkley]

42. Falling stocks and falling approval rating can mean only one thing....

Its time to upgrade the terror alert to orange!

[barb162]

77. see my post right above. That's probably what they'll do

They should be talking about what they need to do to get the economy back on track but they will talk about the filibuster instead or whatever the corporations( that have bought them) want them to talk about.

[KansDem]

83. I agree. Impeach his whole cabinet. Send them to prison...

Specifically, Abu Ghraib...and make them strip naked and pile them into a pyramid!

??
:(

EWWWWWWWWWW...I hope to get THAT image out of my mind before tonight's barbecue!

[barb162]

86. yeah, what a nightmare

[CoffeeCat]

9. That is a REALLY good point...

How in the heck can Junior tout private accounts as the stock market is tanking?

A downward market showcases one of the major weaknesses in Juniors SocSec plan. Bad times on Wall Street beg for these questions to be answered: What if the market goes down? Crashes? Is in a serious downturn when I want to retire?

I'm not happy that the market is going down--but people do need to think about these eventualities. A spiraling market helps people to ponder the reality of these "private accounts."

[Generator]

40. Indeed but we live in the upside down world

How the hell did Bush run on 9/11-when he did nothing to stop it and is by any honest accounting would certainly be held accountable as a failure for the worst attack on American soil since Pearl Harbor?

How does he claim that Iraq is a "victory" because a small percentage of the population voted?

But I think you found a bigger point.

This is money, nothing more important, nothing trivial like lives!

Money comes first. And in this upside down world-I'm waiting for the "old money power guards" to kick this bozo that's ruining everything out on his incompetent nasty ass.

Tank market tank. It's the only hope for Democracy. Am I grasping here or right on?? Because incompetence has a cost. And America is slowly going away as a real powerhouse on the world stage.

[LiberalFighter]

50. Itss not the stocks that would had been approved for private accounts??

The account manager assigned to it would know when to move it into something else?

Because entry into the private accounts would start when stocks were low?

/sarcasm off/

[CountAllVotes]

5. Stocks tumble as investors give up hope

from USA Today:

NEW YORK (AP) — Stocks plunged again Friday, with Wall Street suffering its worst day of 2005 and the third straight triple-digit loss for the Dow Jones industrial average. Deepening concerns over economic growth and higher prices led to the worst week of trading so far this year.
"What we're looking at is a giving up of hope on the part of investors," said Joseph Keating, chief investment officer of the asset management group at AmSouth Bank.

The Dow fell 191 points as an already uneasy market was disappointed as Federal Reserve reported drops in manufacturing and other industrial production. A Labor Department report also showed higher oil costs driving up import prices and worsening Wall Street's chronic inflation worries.

The negative impact of the economic data on stocks was bolstered by lower-than-expected profits from IBM. Strong earnings from General Electric and Citigroup (ed. huh?) were overlooked, but analysts said earnings would nonetheless be a key factor in overcoming the recent sell-off.

"Earnings are really the only hope for this market," said Brian Pears, head equity trader at Victory Capital Management in Cleveland. "If, on the whole, earnings can go up, then we might be able to overcome oil and inflation and all the other things."

link:

http://www.usatoday.com/money/markets/us/2005-04-15-stocks_x.htm?csp=24&RM_Exclude=Juno

*****************

:kick:

[Melodybe]

20. Nice to know that GE (makes weapons) and the Saudi's (citigroup)

are making lots of money.

PUKE!

[Just Me]

8. BLECH!!! So, the "illusion" ain't workin' so well anymore.

Don't expect any sympathy from me.

[Neverarepublican]

11. Bush is an asshole!

Hey George,

Looking forward to sending my retirement $$$$$ to Wall Street.
I really believe I am going to make it big. Can you send me some more Kool-Aid packs?
Hurry!

[On the Road]

12. Is That So?

Geez, at the height of the stock bubble 2-3% days were an ordinary occurrence. I remember one day that the NASDAQ plummeted by almost 12% by 10:30 in the morning, then bounced off the 200-day average and closed almost even.

Volatility is picking up. And with that, uncertainty. Which is not good.

[Iowa]

13. If ever there was a time...

when a crushing, devastating, 1973-74 type bear market would be a good thing - this may be that time. It might help to undermine our current corporate driven evil reign, and halt their attempt to kill SS.

What a terrible mess. Here I am, an average guy who saved his money (and with a chunk in the stock market), and I'm wishing for a collapse in hopes that it will help to prevent far worse things this administration plans to do to us. I'm beginning to get a tiny glimpse of what it must have felt like to be a decent German citizen in the 30's. A few months back my mother was speaking with an old woman who was there. She teared up a little and said, "This is just what it was like...", and she went on to tick off a number of things the Bush regime is doing that are terrifying to her, as someone who had been in Germany in the 30's.

[Just Me]

29. It seems to me that your wish is for an end to the BFEE/neoCON abuse.

You aren't "wishing" for a 'collapse' as much as you want the abuses of the corporacrats to end. It's simply insane/revolting/disgusting/evil how the corporacrats are SUCKING THIS COUNTRY AND ITS PEOPLE DRY OF RESOURCES AND POTENTIAL.

None of us wish the collapse of that economy which serves the majority or our people. ALL OF US want to robber barons to eat shit.

Yes? :bounce:

[Iowa]

41. Hi Just Me! No, that's not quite what I'm saying...

Keep in mind that the economy and the stock market aren't synonymous. Stock prices can collapse without taking the economy down. I'm talking about stock prices - not the economy. A big 73-74 type bear market would certainly hurt, but if that's what it takes to weaken this regime, I'm more than willing to pay that price. Stocks go through boom and bust cycles anyway, and since we'll see a big decline at some point, it may as well be now while this administration is on the road pushing a plan to put our SS money into the financial markets. The timing would be just about perfect.

[Voltaire99]

45. I, too, have heard...

...from Germans who now compare the Bush regime to what they saw happen seventy years ago. They're disgusted; they're beyond belief at the stupidity of Americans.

Let's not be too sure, though, that economic collapse will shortcircuit Bushism. SS destruction will be delayed, probably.

But other terrors would be unleashed. Recall 9/11: widespread desperation plays directly into their hands.

[Tandalayo_Scheisskopf]

15. You guys ever hear of...

Something called "The Elliot Wave"?

Wave 3. Down. Till 2012, some are calling for.

[NYC]

34. I looked up The Elliot Wave.

Where are we now?

http://www.investopedia.com/articles/technical/111401.asp

The interpretation of the Elliot Wave Theory is as follows:

* Every action is followed by a reaction.
* There are five waves in the direction of the main trend followed by three corrective waves (a "5-3" move).
* A 5-3 move completes a cycle.
* This 5-3 move then becomes two subdivisions of the next higher 5-3 wave.
* The underlying 5-3 pattern remains constant, though the time span of each may vary.

[smirkymonkey]

74. Their is also the Kondratieff Wave Theory.

http://www.angelfire.com/or/truthfinder/index22.html

Excerpt:

"But during the secondary plateau, the first signs of problems-the seeds of the deflationary contraction soon to follow-become known. Isolated economies fall into deflationary contraction, and telltale signs such as declining gold prices begin to take hold. During the 1990s, it has been the Japanese economy that slid first into deflationary contraction. Gold has already reached new 11-year lows and as yet shows no sign of a bottom.

The stock market crash of 1997 is the signal that the period of economic growth along the secondary plateau is ending. Additional economies collapse and plunge into deflationary contraction, as characterized during this revolution of the Kondratieff cycle by the domino effect coming from Thailand, Indonesia, Asia, and South America. Stronger economies such as those of Europe and North America are likely to hang on until the last moment, then fall off into deflationary contraction.

We can theorize at this time that these stronger economies, due to their superior handling of monetary policy during the secondary plateau relative to the countries that made serious enough mistakes to cause a plunge into serious financial collapse, will not be affected as gravely as these other countries with collapsing economies. However, no economy is exempt from the effects of the contraction, which is felt worldwide.

Much controversy exists on whether the Kondratieff wave is valid for the post WWII economy. Many have rejected it on the basis that the 54-year mark was reached a decade ago, and should have been the trough. It can be argued, however, that the start of the "up" cycle began in 1940 or 1945, rather than 1930. Also, life expectancy has increased in the 20th century. If the 54-60 year cycle is based on generation aspects, then it would naturaly be 'stretched' beyond 60 years. Since these cycles of wars and economic birth and renewal occur every 2-3rd generation, we can say that when the generation to last see a depression dies off, it's time for another cycle to begin..."(more)

It's interesting to note (if you are interested in this kind of thing) how these economic theories line up w/ the Mayan Calendar and prophecy.

"The Mayans were known for there intricate tracking of cycles such as this one. By embracing the inevitability of the cycle, but not as a destiny but as a tendency, they were able to mitigate its effects and emerge from the cycle bottom in better condition that otherwise would have been possible. Will modern humanity entering the 21st century take heed to the lessons of the past?
"

[megatherium]

87. The Elliot wave theory is a popular theory among certain market analysts

known as "chartists" or "technical traders". The underlying premise is that actually knowing what's going on with a particular industry or commodity is not that useful to you, since everyone else knows that information -- instead, you just look at graphs and numbers, divorced from context. The chartists believe that they've identified regular patterns to these things, that seem to cut across industries or products. They say things like "a negative breakthrough after an inverted head-and-shoulders formation is a strong sell signal", meaning this particular shape of a graph is a good sign that share isn't coming back up anytime soon.

I'm a bit skeptical of this sort of thing, to me it looks a bit too much like numerology or astrology. But it's not like other systems of analysis are all that reliable either!

[truthisfreedom]

16. hi bush! *waves* thanks, man! great job! we couldn't have done better

exposing what a fraud you are.

[medeak]

17. Yay! Gold will go up even more!

(that's good for me)

[Bush_Eats_Beef]

18. I BLEED for Bush's BASE. Billionaires in trouble? I effing BLEED.

The "haves" and the "have mores." I call you my "base."



:grr:

[Robeson]

22. Yes, its sick, isn't it? These robber barons have no sense of ....

...social responsibility. Then again, that goes without saying....

[smirkymonkey]

73. I suppose the one good thing about having nothing is having

nothing to lose.

I don't want to see the average citizen lose all their assets, but I so want to see all these fat cats' fortunes be reduced to rubble.

Only then will they wake up to the fact that unmitigated greed is not sound economic policy and they will eventually cut off their support for this grossly incompetent administration.

[SOS]

35. The Bush photo

reminded me of this 1899 cartoon. The little jerk guarding the door is Mark Hanna, Karl Rove's hero. Put the cartoon and the photo side by side and we see that the Republican Party hasn't had a new idea in over 100 years. They just frighten the masses (Spain 1899/Iraq 2005) and enjoy the profits.

[Bush_Eats_Beef]

43. That's what Randi Rhodes was saying today, in essence...

...eliminate the middle class and all you have left is Bush's "base," plus a bunch of people on the opposite end of the spectrum who are always afraid and only think of survival, of paying their bills, of doing whatever they must to get by. "Democracy" goes out the window. You have the "haves," the "have mores," and THOSE WHO SERVE THEM.

That's pretty much what Rove is working toward, and Bush...in his own, unique, born-again way, has accepted it as his God-given "mandate."

[kineneb]

56. Add to your list the third element

those who have nothing left to loose. They can be the turning point. I have always maintained that those gated communities are only as secure as the low paid schmuck who guard them. Offer him an alternative where he profits (and the gated don't) and the situation might change.

[Bush_Eats_Beef]

58. Today on the web, several stories popped up about Afghanistan...

...saying our biggest mistake was enlisting the aid of Afghanistan to "find" Osama bi Laden, because all HE did was BRIBE them and GET AWAY.

So yeah, even though your projection is pretty chilling, there are people in this country who stand to lose a LOT as the result of that "low paid schmuck" at the front gates. For enough money, that schmuck could let just anout anybody through those gates.

The BIG mistake that Bush's "base" is making, as I see it, is thinking that people will just roll over (or BEND over) indefinitely...that people WANT to serve them, that they're afraid of them or they admire them or SOME OTHER THING that does NOT reflect REALITY.

Human nature dictates that when people are pushed hard enough, they push back. Not ALL people, granted.

[kineneb]

66. Yup. Baksheesh is a way of life in the Middle East.

It is one of the reasons that I am here and not stuck in Iran somewhere. The family moved to Iran in 1970(long story); I was 12 and seriously depressed so they sent me home to my grandparents. But because I had an Iranian passport, certain palms had to be greased to get me out.

I am not surprised Bin Laden would be able to bribe his way anywhere he really wants to go.

It can get that way here if there are enough angry poor people. A little money on the sly, and the car sails through the gates, etc. After all, our current leaders set a fine example of disregarding the laws. And if they do it, why should the lowly pay attention to them, except as courtesy.

[Toots]

48. They are not the ones in trouble

The more the stocks tumble the better buying opportunities they have. There was a lot of money lost today, where do you suppose that money is going to end up? That is why they want your social security funds "invested" in private accounts. How many newscasters did you hear mention huge stock loss today and Bush* pushing for Private accounts in the same telecast? I would venture a bet it is zero.....

[Robbien]

84. You are right, the ones in the most trouble are the mutuals

where many have their 401k's. Insiders have gotten out as much as they could during the last couple of years.

[xchrom]

19. there's a surprise

uh -- not so much.

i wonder if bush is calling his rich friends to dig deep on wall street next week -- a little corporate group shopping?

they'll call it bargain hunting.

[Canuckistanian]

21. See? There's the result of over-taxation

All these companies are being bled dry to support the liberal elite power brokers like... um.... gimme a minute..... uh... well, they're there, they like to keep a low profile! Damn Liberals! Look what they did to Liberia!

[leveymg]

23. Let's see how much longer the MSM can ignore the fact that.

the Bear has devoured the Repugs post-election celebration rally.

Also, how much longer until they wake up and notice that the other Bear -- Russia -- is eating our lunch in terms of shifting terms of trade from oil exports at soaring prices. Oil revenues are also fueling a new independence in Venezuela, and the ghost of Bolivar is rising, theatening to shake off the North. Is the Iron Giant pulling himself back together again?

Here's another wakeup call for the real capital of Bush's America, Houston. The Saudis, the Chinese, the Indians, the Iranians are now doing business with each other, and without us, in international oilfield development and pipeline. Not a single major international contract has been awarded to a US-based multinational oil company since late 2003.

The dollar and trade imbalance are beginning to pull the stock market down. Commodities and consumer goods are rising. How much longer can interest rates and the real estate bubble be kept from bursting?

Time for another big event and a war. June? No one will be able to claim we were cold-cocked from behind again. We're going to get clobbered, regardless, and not too many people around the world are going to feel sorry for us this time.

Maybe the American people will wake up in time to save themselves. Time is fleeting.


:bounce:

[The_Casual_Observer]

28. It is impossible to hold interest rates down in the face

of hyper inflation. The economists are doing a head-in-the-sand deal about how they will have to keep the rates low because of the poor economy, as if inflation plays no role in the decision. It's like the late 70's all over again.

[Doctor_J]

24. It's Clinton's fault!

this is HIS recession - just ask Smirk

[Jack Rabbit]

25. We need to make the tax cuts permanant and privatize Social Security

. . . and make Bush President for Life.

That will solve everything.

[against all enemies]

30. Could we at least decriminalize marijuana?

I don't smoke now but I would like the option.

[NashVegas]

36. Nope

pharmacuticals don't get a piece of that pie.

[ktowntennesseedem]

31. Yeah, the market is down because it ain't got enough money in it.

Just let us free up all of your Social Security investments and pour all of that into the market, and all that extra money will boost it right up again! We can fix Social Security AND the stock market at the same time!

And if you believe that, then y'all are sure to believe that we're on the verge of finding WMD's, Osama, and a whole new set of excuses to save Tom Delay's ass!

[Anakin Skywalker]

33. Doh! I Wonder Why?!

[slackmaster]

37. Glad I'm using dollar cost averaging for my retirement investments

And my gun collection will suffer no ill effects from market wobbles.

[CountAllVotes]

38. well I made money today

believe it or not. Very small investment in international bonds paid today for a change. A going nowhere investment most of the time however.

I saw a head of iceburg lettuce being sold for $3.79 today! And there is no inflation? Since when?

High prices, low returns, investments dead, no jobs. Stagflation they call it or worse yet DEPRESSION. Now we know and to think * wants to steal our SS on top of it! :grr:


:kick:

[RUMMYisFROSTED]

39. Wall St. is legalized Keno.

[GainesT1958]

46. What's all this I hear about an "Inverted Utility Curve"?

That is supposed to have accurately predicted EVERY economic downturn during the past century? Well, I get the feeling that we're in for a BIG one pretty soon...and Dub & Co. have done everything possible to set us up for this...the Repubs forget that a top-heavy economy usually falls flat on its kiester, and this one is tilting harder that way every week. Oil-driven inflation, massive trade deficits, even more massive budget deficit and national debt...weak dollar...it all adds up, folks.

The drag of it is, while politically it couldn't happen to a more deserving bunch of idiots, it's a shame it'll happen to the REST of us, too!:mad:

And so now they're trying to tell us that they're our god and we have to bow before them....that's pretty funny, and even more pathetic.

B-)

[Changenow]

49. Did the curbs kick in?

It looked like they did, but I haven't read that that's what happened.

[steve2470]

51. Wall St. Suffers Worst Day in Two Years

http://news.yahoo.com/news?tmpl=story&u=/ap/20050415/ap_on_bi_st_ma_re/wall_street

NEW YORK - Wall Street suffered its worst single day in nearly two years Friday, with the Dow Jones industrial average falling 191 points for its third straight triple-digit loss. Deepening concerns over economic growth and higher prices led to the worst week of trading since August.

An already uneasy market began the biggest one-day selloff since May 19, 2003, after the Federal Reserve reported drops in manufacturing and other industrial production, and a Labor Department report showed higher oil costs driving up import prices.

The selloff was bolstered by lower-than-expected profits from IBM Corp., which led to fears that technology spending would be substantially worse than expected this year. Strong earnings from General Electric Co. and Citigroup Inc. were overlooked, but analysts said earnings would nonetheless be a key factor in overcoming the recent slump.

"Earnings are really the only hope for this market," said Brian Pears, head equity trader at Victory Capital Management in Cleveland. "If, on the whole, earnings can go up, then we might be able to overcome oil and inflation and all the other things."

<snip>

[Alpharetta]

52. dupe

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1397951

[BrainRants]

53. They told us this would happen if we voted for John Kerry!

I voted for him and voila, they were right!

[haroldgiowa]

54. Wall Street decline

Just think, if I would have invested my SS in the stock market the first of the year. Someone would have been better off.

[Hardrada]

55. Be afraid, be very very afraid

although how afraid, I'm not sure.






:scared:

[osaMABUSh]

57. The R word has been mentioned - Recession

"The market is behaving as is we are going into a recession," said Ram Kolluri, chief investment officer at Global Value Investors. "Retail sales were off and so the market is worrying that the consumer is tapped out. IBM's earnings were off and so we're worried that the earnings will slow."

http://money.cnn.com/2005/04/15/markets/markets_newyork/index.htm

Was Kerry so right about this Hoover-like pResident or what?

[Pirate Smile]

60. WP: Stocks Hit New Low for 2005

Stocks Hit New Low for 2005
IBM's Earnings, Reports on Economy Prompt Major Sell-Off

By Ben White
Washington Post Staff Writer
Saturday, April 16, 2005; Page A01

NEW YORK, April 15 -- Stocks plunged to new lows for the year on Friday as investors reacted fearfully to a poor earnings report from IBM and to fresh data suggesting the economy is softening and that consumers, long the bulwark of U.S. economic growth, are beginning to lose confidence.

The Dow Jones industrial average sank 191.24 points, or 1.9 percent, to close at 10,087.51. It was the biggest one-day drop for the Dow since May 19, 2003, and the third day in a row of triple-digit declines. For the week, the Dow lost 373.83 points, or 3.6 percent.

The stock market has lost much of the gains it enjoyed in the closing months of last year, when a decisive end to the presidential election, robust economic growth and soaring corporate profit helped share prices advance.

That bullish mood has instead given way to one of intense anxiety in which all news is viewed negatively and not even strong earnings reports, such as those this week from Pepsi, General Electric, Citigroup and Apple Computer, can overcome fears of a slackening economy, a bulging trade deficit and a worn-out consumer struggling to keep up with higher energy costs.

http://www.washingtonpost.com/wp-dyn/articles/A57612-2005Apr15.html

[aquart]

61. Be sure to invest your social security now.

[teryang]

62. Overcoming oil, inflation and the other things

Isn't going to happen. Increased oil prices, commodity prices, trade deficits, interest rates and the domestic production slump make for a terrible investing environment. Various stop gap measures have been undertaken to artificially manipulate the market but tax buying just ended today.

However, don't think this is only explanation. The so called jobs creation act passed last november was supposed to repatriate corporate funds for a year with windfall tax relief. Enough capital influx to artificially support markets along with other plunge protection manipulations. Something could be afoot. Something that would cause a short term panic in the markets. So the institutions are getting out early and will go long for short term gains after the panic triggering event occurs. Goldman Sachs prediction of $100 a barrel oil may be just speculation. But it also might be based upon something they are anticipating and not in a position to talk about.

Hopefully we'll see a dramatic market plunge accompanied by relief rally soon thereafter. A Vietnam era 70s style market would be awful.

[happyslug]

67. CIA telling their friends what will happen when Bush attacks Iran?

i.e. The CIA knows that Iran has the capability to stop Oil tankers from using th Straits of Hormuz and/or the ability to destroy the Saudi oil exporting terminal. Either would reduce world wide Oil shipments and lead to a subsequent increase in price for oil. What would the price of oil be when the world loses 25-33% of its oil production?

Alternative Scenario, The market dropped on April 15, Tax-Day in the US, given that 65% of all tax returns are now done electronically does the IRS know revenues are no where near what is expected? You no longer have the weeks and months to wait while the paper tax forms are put into the Tax Data Base, with electronic filing it is into the data base as the forms are filed. Thus it is possible that Revenues have dropped so much (do to drop in Income and the tax cuts) that you have a huge drop in people sending in their payments (people who have to pay generally wait till this week to pay, not till this week would the IRS realize what is happening and someone in the IRS are telling their friends who are telling everyone to get out of the Market for the Market will drop like a rock once the numbers are released).

When I started to write this thread I thought CIA, Oil and the Middle East with someone sleeping on the Switch for it is Tax day (i.e. No action by the PPT for they are all with their CPAs finishing up their own tax forms), but than I thought about it and the better answer is the IRS is NOT getting the Revenue it expected and both the White House, Congress and the Market has been counting on.

[ribrepin]

71. Vietnam era 70's market is probably what we'll have

You can't run a war and not raise taxes. You'd think these assholes would know this. The market may recover for now, but sooner or later, we'll be back redoing the 70's.

I pray we don't have a Soviet style meltdown. Things are in place for that too.

[KoKo]

76. Could be a problem on the horizon with the Hedge Fund/Derivatives

crowd, too. Some more cautionary voices have thought the Hedges would blow first while the Real Estate Bubble would just gradually deflate. Hedgies would hurt some banks and some financial writers think they have been investing in our bonds when the Chinese and Japanes take a breather. :shrug:

My bet is on the Hedgies being the problem. Bushies can control the Oil problem by releasing the reserves for a bit. Don't know if they can press on their Oil buddies much more after that for further relief, though. Whatever it is there's something afoot they couldn't control this time.

[teryang]

79. Yes, this is a problem

A lot of commodities producers have been unhedging themselves, to protect their bottom lines from rising prices. As they do, purchasing industries become more vulnerable. Voila, after talking up the 20 year commodities cycle, now it is suddenly described as a dot.com bust. Who believes this stuff? How could it be a dot com bust? I'd rather own a solvent natural resources company than blue sky any day.

I feel that derivative markets are used to assign artificial valuations to intangibles independent of unlying market strength. There is a divergence now that cannot be smoothed over much longer.

The financial hocus pocus is so blatant. I hate to say it but I'm looking forward to the breakdown. What will the next stopgap be? I'm just guessing but I'd say more war to cause others to seek refuge in the dollar.

[KoKo]

88. That's definitely a worry...but with so much crookery and manipulationj

it's left up to us who read...read...read..and even then it's hard to know which side our "reading" falls on.

Buy Gold! Buy Commodities! Go into Laddered CD's! Keep your cash under the bed after you've cashed out on the "upticks"...yadda..yadda..yadda.

I try to go through the middle and pray alot and keep some under the mattress and hope for the best for the rest...:shrug: what else can one do when you are on the "outs" in America ...but aren't dumb and willing to play the CNBC/Kudlow game...

[ngGale]

63. Wonder how they will spin this news...

I know, they will just ignore it on TV.

[The Flaming Red Head]

64. Don't blame me I voted for Kerry

[high density]

65. Four more years! Yeeeeeeeaahhhhhhh!!!

Yeeehaw!! Let's steal $2 trillion from social security and give it to Wall St! That will fix ALL of our problems.

My goodness this stuff pisses me off to no end.

[Media_Lies_Daily]

85. Only if Herr Busch doesn't proclaim himself President for Life....

...and to set that up, we'll need to have another "terrorist attack".

[Yo_Mama_Been_Loggin]

68. Geez I'm not surprised

The stock market's been in the toilet during Bush's term. I've invested since the Reagan years and it's always gone up in the long term.

That's until the dim son's turn.

[chlamor]

69. What if Wall St. Were Booming?- Would that

be a good thing? Growth for growths sake is the operating principle of the cancer cell. The entirety of Wall St. is criminal and has been since day one. More importantly it reflects only finances and not ecological/social consequences. To look at Wall St. as a barometer of our well-being is mistaken. We are in a silent depression.

[Straight Shooter]

70. Which is precisely why, chlamor, I avoid Wall Street like the plague.

I cannot, myself, reconcile accepting monetary rewards by investing in corporations whose prime directive is to create profits wherein the ends justifies the means. I don't know. It just gives me a hinky feeling.

[teryang]

91. Wall Street has all the substance of a latin American exchange

US economy 80 percent services. 25 percent of the exchange is now financial services equities.

Erh, where's the beef?

[Kingofalldems]

78. But we need private accounts

And if you don't agree you must hate America.

[orpupilofnature57]

89. We need impeachment now, on grounds of sanity.