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Title: Dow Plunges 531 Points in Global Selloff - WORST IN FOUR YEARS
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URL Source: http://www.wsj.com/articles/u-s-sto ... oint-to-more-losses-1440159610
Published: Aug 21, 2015
Author: By Leslie Josephs and Tommy Stubbington
Post Date: 2015-08-21 22:40:08 by HAPPY2BME-4UM
Keywords: MELTDOWN
Views: 117
Comments: 7
Stocks plummeted on global-growth fears for a second straight day Friday in a plunge that dragged the Dow industrials into correction territory. The global market rout pummeled stocks and commodities as fresh evidence emerged that China’s economy is slowing, spooking investors. The Dow industrials lost 530.94 points, or 3.1%, to close at 16459.75, putting it in correction territory, as defined by a 10% decline from a recent high. The S&P 500 dropped 64.84 points, or 3.2%, to close at 1970.89. The Nasdaq Composite fell 3.5%, or 171.45 points, to 4706.04. The Dow’s more than 1,000-point drop this week was the largest weekly drop since the week ended Oct. 10, 2008. U.S. oil prices also briefly dropped below $40 a barrel on Friday, a level not seen since the financial crisis. Signs of a sharp slowdown in the world’s second-largest economy have unnerved investors since Beijing surprised markets last week by devaluing its currency. Shares in the U.S., Asia and Europe have tumbled, along with commodity prices as investors fretted about waning Chinese demand just as supplies are surging. The market turmoil has some traders exercising caution. “You have a situation that’s tough to play,” said Christopher Cady, a New York-based trader. He said he closed out bets toward the end of the week that U.S. stocks would fall. “Nimble…is the new black.” The pan-European Stoxx Europe 600 ended the session 3.3% lower, closing out its biggest week of losses since August 2011. The index has now lost nearly 13% since its April peak, entering correction territory. Earlier, the Shanghai Composite Index tumbled 4.3%, hitting its lowest level since March, despite Beijing’s efforts to prop up the market in recent weeks. In Japan, the Nikkei fell 3% to a six-week low. An early gauge of China’s factory activity fell to a six-and-a-half year low in August, heaping further pressure on stocks and commodities after Thursday’s global selloff. “Now we’ve had some harder evidence that China is slowing relatively fast, people have chosen to get out,” said Kiran Ganesh, a multiasset strategist at UBS Wealth Management, which oversees around $2 trillion of assets. A surge in investor demand for assets considered safest during times of market stress sent the yield on 10-year U.S. Treasury bonds to 2.042%, its lowest level since April. Yields fall as bond prices rise. The dollar fell by around 1% against the euro and Japan’s yen. The euro and yen have recently tended to rise during times of market stress. Some investors and analysts say they think the tumult in the markets could complicate the Federal Reserve’s plans to raise interest rates. “The Chinese have created an air of fragility around the globe. Markets will now surely have to firm up considerably for the Fed to pull the trigger next month,” said Deutsche Bank analyst Jim Reid. Ultralow interest rates have fueled a big rally in stock markets since the financial crisis. On Wednesday, minutes of the Fed’s latest policy meeting showed officials were divided over when to raise rates, with some citing concerns over China’s economy as a reason to hold back. But a delay in lifting rates may bring little comfort to investors if slowing global growth is underpinning the Fed’s caution. Paul O’Connor, a senior fund manager at Henderson Global Investors, which manages £82 billion ($129 billion) in assets, said he has been selling stocks and buying bonds in recent months, fearing further spillover from the recent Chinese selloff. “Is there a buying opportunity in stuff that has got beaten up, or will it start to erode confidence in developed market assets? We’re in the latter camp,” he said. Global equities suffered $8.3 billion of outflows in the week ended Thursday, representing the worst week in almost four months, according to data from Bank of America Merrill Lynch published Friday. Losses were particularly heavy in the emerging markets and the U.S. The recent rout in commodity markets continued Friday as fears over waning Chinese demand intensified. Oil prices extended their recent declines. Brent crude oil, the global benchmark, fell 2.5% to around $45.48 a barrel, its lowest level since January. The U.S. benchmark settled down 2.1% at $40.45 a barrel. Industrial metals prices also fell as the Chinese data reignited worries about the future pace of demand from the world’s top consumer. Signs of slowdown in Chinese economy pressure stocks, commodities
ENLARGE In the Markets
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#1. To: HAPPY2BME-4UM (#0)
Blood in the street bump - messy week.
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
This could be it. We'll know by Monday. U.S. Constitution - Article IV, Section 4: NO BORDERS + NO LAWS = NO COUNTRY
Get ready to buy the shit out of some stocks.
#2. To: Lod (#1)
#3. To: HAPPY2BME-4UM (#0)
-Alex Kurtagic
#4. To: X-15 (#3)
Buy?? Get ready to buy the shit out of some stocks.
#5. To: NeoconsNailed (#4) (Edited)
Of course! Until the EBT spigot & other shit that the riff-raff largely abuses is shut off it is 'business as jewsual'.
-Alex Kurtagic
#6. To: X-15, 4 (#5)
You have a point. All the FED has left is another round of QE and if that occurs
you could see some stocks pop back up. Netflix, Apple, Facebook, Google & Amazon
are the only stocks I'd consider, and I'm betting at this point they have
another 20%-30% to lose. Of course! Until the EBT spigot & other s**t that the riff-raff
largely abuses is shut off it's is 'business as jewsual'.
#7. To: Jethro Tull (#6)
In other words, buy while they're 500 down, sell when QE kicks back in?
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