Dow Takes Dive
That was a short rally. Good thing we didn't trust it.
At about 10:30 a.m., Wall Street is down across the board: the Dow is trading down between 180 and 200 points, or 2 percent; the S&P 500 is down 2 percent and the Nasdaq is down about 1.5 percent.
The Dow is now heading toward the 8,000 barrier; another 350-point drop and the first number in the Dow will be a "7."
It looks like the markets are settling in to another day of sell-offs, based on the underlying fundamental of the economy, which are not good.
Here's a quick look at the economic news that has rolled out this morning:
-The Swiss National Bank and the Fed have agreed to buy $60 billion in toxic assets from UBS.
- The cost of living in the U.S. -- judged by the Consumer Price Index -- remained unchanged in September. This means inflation is not a problem and the Fed has more leeway to lower interest rates if it wants to in an effort to unfreeze the credit markets.
- Financial giant Citigroup posted its fourth-straight quarterly loss and will cut 11,000 jobs.
- Industrial production in the U.S. hit a 34-year low in September, thanks to a combo punch from a couple of hurricanes and the ongoing machinists' strike at Boeing. By the way, 1974 marked the beginning of the end of a huge manufacturing component of the United States: U.S. Steel and its employees at the sprawling Gary, Ind., plant, struck an experimental collective bargaining agreement meant to avoid strikes and try to keep an already-struggling steel industry on its feet. It didn't work.
- New jobless claims from last week jumped higher than expected.
Did you know? The average U.S. credit card holder is carrying $10,000 in debt on that card.
-- Frank Ahrens
Posted by: Thomas Hardman | October 16, 2008 11:22 AM | Report abuse
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