Network News

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

Big sell-off at end of day crushes stocks

UPDATED at 4:25 p.m.:

Stocks experienced a bad sell-off in the final moments of trading today, as Wall Street got spooked again over European debt, this time because the Spanish government took over a failing bank.

The Dow closed down 1.2 percent at 10,066.65, coming perilously close to the psychologically important 10,000 barrier.

The Dow is now down 8.6 percent for May and down 3.5 percent for the year.

The broader S&P 500 closed down 1.3 percent at 1,073.65 , nearing its resistance level, or comfortable floor, of 1,060.

The tech-heavy Nasdaq fared a little better, losing only seven-tenths of 1 percent on the day, closing at 2,213.55.

The big culprit in today's sell-off were financials.

Oil closed up slightly, topping $70 per barrel.

Stocks trim losses in mid-day trading

12:05 p.m.: Stocks are working to gain back some of their losses from opening but haven't quite gotten there at mid-day.

The Dow is off its lows but still down two-tenths of 1 percent.

The broader S&P 500 has pulled back to even on the day.

It's a better day for tech stocks. The tech-heavy Nasdaq is up four-tenths of 1 percent.

Stocks appear to have taken some cheer from this morning's good existing-housing sales news.

Stocks were mixed in Europe on a quiet day of trading today. London's FTSE closed up one-tenth of 1 percent.

Germany's DAX was down four-tenths of 1 percent.

France's CAC 40 finished even.

Stocks dive at opening

10:08 a.m.: Stocks are taking a dive at opening, erasing some of their Friday gains.

In the first 20 minutes of trading, the Dow is down nine-tenths of 1 percent.

The broader S&P 500 is down seven-tenths of 1 percent and the tech-heavy Nasdaq is down one-tenth of 1 percent.

It's a big week for U.S. economic data, starting with existing home sales, due out momentarily. Later this week, we'll get a revision of first-quarter GDP, consumer spending and durable goods orders. These will help tell us about the ongoing health of the U.S. economic recovery and then we'll find out whether the U.S. recovery is strong enough to overcome growing European problems.

By Frank Ahrens  |  May 24, 2010; 4:25 PM ET
Categories:  Wall Street  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: GE's Immelt to college graduates: You're pretty much hosed.
Next: Hilarious Aussie video explaining Europe's impossible debt problem

Comments

9.9 % unemployment rate.When Obama acts, the rate increases.

Posted by: tsapp77 | May 24, 2010 10:23 AM | Report abuse

What made that happen?
Telemundo Meican Broadcasters are telling the World they back the establishment of Aztlan Mexico in 10 USA States, fracturing the Union.
To the World , it appears to be Russia falling, all over again.
Obama must place the 3,000 troops Arizona is asking for, and a fleet of locked and loaded military choppers to start flying 15 minute runs in that war zone, to shut down the Foreign National Invasion to re-establish investor confidence.

People in Arizona are now so desperate for protection, that they are walking out on mortgages they can afford, because Mexico tells them that only Mexicans can legally own businesses and property in Mexico.
They are claiming it to be Aztlan Mexico, ignoreing the Gadsden Purchase, and flooding the 10 State area with Aztlan Mexico builders as Conquistadores.

To fix the markets, Congress must militarize the Arizona border, and eliminate Napolitano's job. Homeland Defense has proven itself to be a disease, drug, and Foreign National Invasion supporter, rather than a protector of the USA.

Posted by: dottydo | May 24, 2010 10:33 AM | Report abuse

Although good economic numbers here will help, the market is not only driven by U.S. economic activity with S&P getting over half it's income from overseas sources. In a global economy the VIX rising affects uncertainty in all global markets. The German and U.S. financial risk abatement and market freezes mean nothing unless arbitrage is halted on other exchanges. Our debt will never be solved until the politicians have the moxie to address in importance order medicare/medicaid, social security and the large defense budget. The last politician to really address the budget and voodoo economics was Bush Sr. that raised taxes, cut the budget and was crucified in the election because of it.

Posted by: jameschirico | May 24, 2010 10:54 AM | Report abuse

Again, I told you about this last week. The market, the Western economies are so predictable. Instead of listening to economists, if our "leaders" had been paying attention to mathematician's and their socio-econmic models, much of this could have been avoided. Right now, it isn't Europe that's on a precipice, its the U.S. Portugal is going to be next to fail' the U.K. late this year (and I mean a complete economic collapse, riots in the streets, the government falling apart, mini-revolutions, wealthy individuals killed by angry mobs, the whole "nine yards". We will follow the U.K. shortly, but it is going to be a lot worse, here.

Now, and agin this has been modeled and written about exhaustively, this can be headed off. End, and I mean completely and abruptly end, job outsourcing; get rid of every guest worker; pass really trade tariffs to reverse job outsourcing and revitalize private American job creation; and get rid of illegals. Do all of these things as if your life depended upon them, because, believe me, it does.

Posted by: mibrooks27 | May 25, 2010 10:10 AM | Report abuse

Oh, and I realize this is showing off, my model has NK starting a low level shooting war with the South on Friday or Saturday, with a market fall on Friday of around 5%. That plunge continues into next week, when China reigns in NK....for a while. Then, Portugal fall and all hell breaks loose. Enjoy the ride.

Posted by: mibrooks27 | May 25, 2010 10:38 AM | Report abuse

The comments to this entry are closed.

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company