Network News

X My Profile
View More Activity
2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Markets Dive at Opening

Wall Street opened today's session like a Buick rolling off a cliff: straight down, fast and hard.

The question today: Does this mean the three-week rally is over?

In the first 15 minutes of trading, the Dow is down about 216 points, or about 2.8 percent.

The broader S&P 500 and the tech-heavy Nasdaq are both down nearly 3 percent.

The Buick allusion in the first sentence is no coincidence: The markets are likely at least partly responding to yesterday's news that the White House has forced GM chief executive Rick Wagoner out of his job as a condition of getting more government bailout aid.

The fact that the government has demanded and received its pound of flesh makes Wall Street nervous: Which top executive will Washington go after next?

Despite today's poor opening performance, some analysts see today's drop -- even if it turns into a weeklong pullback -- a necessary correction to the recent surge and a necessary element of turning a dead-bear bounce into a real bull-market recovery.

-- Frank Ahrens
Sign up to get The Ticker on Twitter

By Frank Ahrens  |  March 30, 2009; 9:49 AM ET
Categories:  The Ticker  | Tags: Dow Jones, GM, Rick Wagoner, nasdaq, s&p 500  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: This Week: Economic Data Brings Reality Check
Next: Fallout From Wagoner Ouster: GM, Ford Shares Plummet

Comments

This is healthy in two ways, one for the correction needed and two for the needed change at the helm of GM. I have been out of work for eight months and not due to my inactions or performance. Here is a guy who has led GM into the abyss and was still receiving compensation for poorly managing a company. Where do I apply? I could surely do better.

Posted by: alanherman | March 30, 2009 10:02 AM | Report abuse

I can't imagine the markets are too happy about our surging on into that sinkhole called Afghanistan, either, but I don't suppose it would be politically correct to point this out.

Posted by: SarahBB | March 30, 2009 10:05 AM | Report abuse

Our Money - Our Company!

Wagoner ran the company into the ground! Obama, representing the new owners, us, wisely told Wagoner to clear out of his office.

GM's recovery cannot take place with Wagoner's miserable management style.

Posted by: storky | March 30, 2009 10:08 AM | Report abuse

I can't imagine the markets are too happy about our surging on into that sinkhole called Afghanistan, either, but I don't suppose it would be politically correct to point this out.

Posted by: SarahBB | March 30, 2009 10:09 AM | Report abuse

Face it, folks - the markets are reactionary. They aren't "pro-active", and don't think in the long-term. Bankruptcy may very well be the best thing that happened to the auto industry. It doesn't mean that they won't exist, but that they'll have to reformulate themselves to be more competitive.

Posted by: MichelleKinPA | March 30, 2009 10:15 AM | Report abuse

The incipient strife expected at the G20 meetings also played a major role in today's drop. Although it had a role, the announcement of Wagoners' firing is simply not enough to drop the market 3%. He simply isn't that valuable or smart.

Surely no one thinks there won't be days where the market has major drops after three weeks of constant gains. Even after today's drops my stocks are still higher than they were a month ago.

Posted by: JCharles1 | March 30, 2009 10:23 AM | Report abuse

Let Ron Gettlefinger take over the top job at GM. He has been the shadow management for years and has intimate knowledge of the worker wages, work rules, seniority rights and he even has a working knowledge of the Board of Directors. If Mr. Gettlefinger can successfully run and grow the United Auto Workers union he certainly has what it takes to run General Motors, Chrysler and Ford if he so chooses.

signed: Frankly speaking.

Posted by: mdfrank | March 30, 2009 10:27 AM | Report abuse

The American auto industry is going to be much, much smaller if it survives at all. Most American jobs which have been lost, and will be lost as the auto industry and others downsize, will not return or be replaced by good paying jobs in other industries. So...good bye middle class, hello poverty and despair. Lying touts, otherwise known as stock brokers, will, on the other hand, live forever and prosper often.

Posted by: lifeguardlarry | March 30, 2009 11:42 AM | Report abuse

The comments to this entry are closed.

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company