Network News

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

Stocks stage mighty rally but fall short

UPDATED at 4:16 p.m.

They couldn't quite make it.

Stocks fell off the table at opening this morning and spent the rest of the day staging a mighty rally in an attempt to recoup losses. In the end, they fell short.

The Dow closed down .51 percent at 10,321.03.

The broader S&P 500 closed down .08 percent, at 2,234.22.

The tech-heavy Nasdaq closed down .21 percent, at 1,102.93.

Stocks were pile-driven down at opening by last week's new jobless claims number -- which came in higher than expected -- and renewed concern that Greece's sovereign debt would be downgraded. A wobbly euro didn't help, either.

Stocks dropped more than 1.5 percent at opening. The Dow was troughed nearly 200 points down.

But then a rally kicked in at about 2 p.m., as Fed Chairman Ben Bernanke reported on monetary policy to the Senate. Bernanke told lawmakers not to worry about inflation this year, and that may have cheered the markets.

Also, commodity prices ticked up during the day, thanks to a leveling out of the dollar, and that may have boosted stocks.

Stocks are attempting a big rally, but still are down on the day

2:23 p.m.: Stocks are making at attempt to rally off their lows with less than two hours left in the trading day.

As of 2:23 p.m., the Dow is still down but is off its lows for the day, down about 1 percent. The Dow was down by almost double that at its low today.

The broader S&P 500 is down seven-tenths of 1 percent, also off its lows.

The tech-heavy Nasdaq is down six-tenths of 1 percent, well off its lows for the day.

Why the mini-rally?

Commodity prices have been rising throughout the day, taking stocks up with them. The dollar has leveled off; most commodities are traded in dollars.

Stocks remain depressed but stabilize

10:53 a.m.: Stocks remain depressed but have stabilized and are churning sideways.

Nearly 90 minutes into the trading day, the Dow is down 1.5 percent.

The broader S&P 500 is down 1.3 percent, as is the tech-heavy Nasdaq.

Opinions are split on this. Some veteran traders say the dive is all about this morning's disappointing new jobless claims news. Others say it's about the possible downgrade of Greece's sovereign debt and continuing concerns about the euro.

Stocks dive at opening

9:43 a.m.: Stocks opened this morning's trading by showing their biggest drop in three weeks, following a disappointing jobless claims report out this morning and uncertainty about government intervention into health care and financial regulation.

In the first 15 minutes of trading, the Dow is down 1.4 percent.

The broader S&P 500 is down a little more than 1.4 percent and the tech-heavy Nasdaq is also down 1.4 percent.

President Obama is meeting with a number of congressional leaders this morning on health-care reform, and the markets worry that the president's plan, or any plan adopted by a Democratic-controlled Congress, could lead to government takeover of the U.S. health-care system.

At the same time, financial reform regulation is moving forward, which also worries Wall Street.

Further weighing on stocks is news that ratings agencies may consider downgrading Greek sovereign debt. This morning, Fed Chairman Ben Bernanke said the central bank is looking into Goldman Sachs' bets on Greed debt default.

Follow me on Twitter at @theticker

By Frank Ahrens  |  February 25, 2010; 4:16 PM ET
Categories:  The Ticker  | Tags: Dow Jones, healthcare reform, jobless claims, nasdaq, s&p 500  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: New jobless claims unexpectedly rise 22,000
Next: This week's economic data paint a gloomy forecast

Comments

Why are the phony hoopla? Stocks are over-bought, we all know it, and a correction is natural - 5% more to go and we're done.

Posted by: beenthere3 | February 25, 2010 10:00 AM | Report abuse


While more people are losing their jobs and the number of housing starts is the lowest in history, the three stooges are focusing on taking over a big chunk of our economy.

Worst. President. Ever.

Worst. Congressional. Leadership. Ever.

Posted by: waterfrontproperty | February 25, 2010 10:31 AM | Report abuse

These Numbers will be revised.
490,000 new jobless claims, and
yet' I'm sure the unemployment
number will magically come down.
This is Psychological Ecomonics,
as for the stock market, there
are incredible deals to be had.
or, take a few months in safe haven.
i'm sure obama will be proclaiming
that spending 1.1 trillion on healthcare
reform will fix the stock prices, too.

Posted by: simonsays1 | February 25, 2010 10:42 AM | Report abuse

Consumer Confidence, Home Sales, Job numbers all down on Tuesday but yet the Stock Market went up.

That is becuase Bernanke assured Wall Street that the Fed would continue to prop up the Market with $12 TRILLION of artificial support and corporate welfare.

The Equity Markets go up in the face of economic news that would normally bring the Market down 5-10%. Why does the Stock Market keep going up? Because Wall Street knows that no matter what, the Fed, Treasury and Congress will bail them out.

Want to know the true value of the Stock Market? Take out about $12 TRILLION in artificial support and you realize that that stocks are substantially over-valued by about 20-30%. And sooner or later this reality will hit and the Equity Markets will fall.

Posted by: satgroup | February 25, 2010 10:44 AM | Report abuse

"This morning, Fed Chairman Ben Bernanke said the central bank is looking into Goldman Sachs' bets on 'GREED' debt default."

You gotta love that spell check at the WashingtonPost.com. YES! IT IS ALL ABOUT GREED!

How do you people have jobs?!?!

Posted by: cemegomad | February 25, 2010 10:45 AM | Report abuse

No job, no spend. What more do you need to know?

Posted by: Rudy7 | February 25, 2010 11:34 AM | Report abuse

Evidently the possessive of Greece is "Greek's" !

Posted by: Richko | February 25, 2010 11:53 AM | Report abuse

While more people are losing their jobs and the number of housing starts is the lowest in history, the three stooges are focusing on taking over a big chunk of our economy.

Worst. President. Ever.

Worst. Congressional. Leadership. Ever.

Posted by: waterfrontproperty | February 25, 2010 10:31 AM
-----------------------------
You and your reactionary friends have been trashing this country for 30 years. Now that the results of your destructive activities are coming to fruition, you want to blame someone else. You should be in jail.

Posted by: mnjam | February 25, 2010 12:49 PM | Report abuse

The American stock market is a complete scam and has been since Reagan. A stock market in the world's largest debtor can only have one function: selling that debtor's assets to foreigners.

Posted by: mnjam | February 25, 2010 12:51 PM | Report abuse


From Bloomberg today:
http://www.bloomberg.com/apps/news?pid=20601087&sid=a.DJ3JHmieCU&pos=3

In January:
Unemployment rose
Orders for durable goods fell
Business equipment sales fell
Home prices fell
Capitol goods fell
Orders for machinery fell 9.7%
Orders for motor vehicles fell
Consumer confidence fell
Opinions of current conditions are the lowest in 27 years

The bright spot: Computers and software were up.

This is indeed change we can believe in.
.

Posted by: Billw3 | February 25, 2010 1:03 PM | Report abuse

While more people are losing their jobs and the number of housing starts is the lowest in history, the three stooges are focusing on taking over a big chunk of our economy.

Worst. President. Ever.

Worst. Congressional. Leadership. Ever.

Posted by: waterfrontproperty | February 25, 2010 10:31 AM
-----------------------------
You and your reactionary friends have been trashing this country for 30 years. Now that the results of your destructive activities are coming to fruition, you want to blame someone else. You should be in jail.

Posted by: mnjam | February 25, 2010 12:49 PM

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Typical Dem. Change the subject and attack. Straight for Sol Olinsky's Handbook.

I don't want the USA to become like Western Europe. How about you?

Posted by: waterfrontproperty | February 25, 2010 1:07 PM | Report abuse


waterfrontproperty said:
"While more people are losing their jobs and the number of housing starts is the lowest in history, the three stooges are focusing on taking over a big chunk of our economy."

Obama is hell-bent on socialism at best, and the ruination of our financial system at worst.
.

Posted by: Billw3 | February 25, 2010 1:10 PM | Report abuse

Is it any wonder things are as bad as they with most ignorant President ever occupying the oval office? I'm just glad that the people getting hurt the most are the ones who voted for this fool. Vote Republican next time if you want prosperity. Id!ots.

Posted by: charlietuna666 | February 25, 2010 1:26 PM | Report abuse

While more people are losing their jobs and the number of housing starts is the lowest in history, the three stooges are focusing on taking over a big chunk of our economy.
Worst. President. Ever.
Worst. Congressional. Leadership. Ever.
Posted by: waterfrontproperty | February 25, 2010 10:31 AM
-----------------------------
You and your reactionary friends have been trashing this country for 30 years. Now that the results of your destructive activities are coming to fruition, you want to blame someone else. You should be in jail.
The dumbocrats have controlled congress for most of the last 50+ years. This isn’t a dictator state yet but the progressive social Marxists, are trying very hard to make it that way. I think you need to take a double look at who are the reactionaries, I recommend a mirror.

To see your future and what fifty plus years of social policies get you, look at Europe. Those nanny countries are coming unglued and why. They are running out of other people’s money. Everyone thinks they are entitled and it’s their right to get government services. The problem is, other than weapons, governments don’t make anything to sell, unless you are in a dictatorship with no or limited privatization. Germany seems to be the only not affected but maybe that’s because they have been heading back to reduced government size with targeted controls.

Greece will be the first to fall and after watching the workers protest yesterday, they obviously don’t get it that they are consuming more then they are making or selling and others are tired of giving with nothing in return. Maybe they will understand their greed and narcissism after a big collapse. If we keep that direction our turn will come sooner then you think.

Posted by: Wisconsin1 | February 25, 2010 1:43 PM | Report abuse

Is it any wonder things are as bad as they with most ignorant President ever occupying the oval office? I'm just glad that the people getting hurt the most are the ones who voted for this fool. Vote Republican next time if you want prosperity. Id!ots.

You call the 43rd President, George W. Bush's tenure, prosperity?!!?

Posted by: Sanglant25 | February 25, 2010 2:27 PM | Report abuse

The stocks aren't as depressed as I am but that could happen any day!

Posted by: Wildthing1 | February 25, 2010 2:33 PM | Report abuse

Some say it's about the jobless figures in the United States . They happen to be correct . Other hopefull dolts are more likely to direct their attention toward Greece . They and the MSM can keep looking in that direction . It gives them something to do and keeps them out of the way !

Posted by: lagnafrah | February 25, 2010 2:45 PM | Report abuse

Stocks are having difficulty rallying because most Americans do not trust the economics of the Obama administration. Read what we think about the Fed money reserve and the broken purse strings.

Bernanke makes pronouncement about the economy and presumes the U.S. economy is in recovery but still wants to spend more tax dollars on homeless and unemployment. Fed mentalit is to spend they way out of the problem. However, to see any indication of economic recovery, we must see significant progress that shows private sector companies and business are rehiring all those hundreds of thousand of hard working Americans who were laid off from the job.

Unemployment is one thing, but experience workers getting the ax from employers at rates never anticipated is a crisis that Fed spending only exasperates. Congress needs to take authority away from Fed Bernanke. Hearings indicate that Bernanke disclaims any undo influence from the Obama White House. O ho ho

How can you deny that Bernanke’s behavior is driven by Obama Democrat politics? In his interviews with White House staff before his appointment, don’t you think some deals were made on Fed tax money “purse strings” that Bernanke agreed to in order to get the Fed job.

Posted by: klausdmk | February 25, 2010 4:46 PM | Report abuse

So when can we start public lynchings of Goldman Sacks SOBs and when is the march to Wall Street to BURN GOLDMAN TO THE GROUND!!!

Let me know, I definitely want to participate.

Posted by: Impeachbush99 | February 25, 2010 5:37 PM | Report abuse

Goldman Sacks is out aggressively destroying innocent Countries now due to lack of any regulation over them whatsoever. It's time for other countries to regulate U.S. Financial Institutions since our bought and paid for Congress "Representatives" are too spineless to do anything about it.

I wish other Countries would just tell the U.S. to take a hike and send us in to being the 3rd world impoverished country we deserve to be.

Posted by: Impeachbush99 | February 25, 2010 5:41 PM | Report abuse

The comments to this entry are closed.

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company