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Stocks hammered by Europe today, but still up year-to-date

stock market

Image by Dannels via Flickr

UPDATED at 4:22 p.m.:

U.S. stock markets are still up year-to-date despite a brutal pummeling today at the hands of Europe and its growing financial instability.

The Dow closed down 1.5 percent today at 10,620.16, but is up a little less than 4 percent for the year.

The broader S&P 500 closed down 1.9 percent today at 1,135.68, but is up 4 percent for the year.

The tech-heavy Nasdaq closed down 2 percent today at 2,346.85, but is up more than 5 percent for the year.

Oil hit its lowest level today since February 5. The euro is approaching parity with the dollar. It is now trading at $1.24.

Stocks test lows of day in afternoon trading

2:25 p.m.: Stocks made a bid to regain some of their losses on the day but, with less than two hours to go in trading, they are testing their lows on the day.

The Dow is down 2.1 percent.

The broader S&P 500 is down 2.4 percent and the tech-heavy Nasdaq is down 2.6 percent.

The volatility index (VIX), known as the "fear index," a measure of traders buying protection against future volatility, is up 25 percent on the day.

Crude has hit its 2010 lows and the euro continues its slide on the day. It's all Europe today and, by that, I mean it's all Europe that's dragging down the U.S. markets.

What's wrong with Europe? Click here to read my "Five reasons why Europe is sick."

Sell-off continues at mid-day

Noon: The big stock sell-off continues on Wall Street as trading hits mid-day. This is turning into an end-of-the-week rout, thanks to continued worries about European debt and stability of the euro.

At noon, the Dow is down 1.8 percent.

The broader S&P 500 is down 2.3 percent and the tech-heavy Nasdaq is down 2.7 percent.

Wall Street is responding to the bloodbath in the European markets, which just closed.

London's FTSE closed down 3.1 percent, Germany's DAX closed down 3.1 percent and France's CAC 40 closed down 4.4 percent.

The euro continues to tumble against the dollar.

Stocks dive at opening

10:11 a.m.: Stocks have turned sharply negative in the first 30 minutes of trading, as New York traders continue to worry about European problems. This is quickly turning into a broad sell-off, as volatility continues to rule Wall Street.

The Dow is down 1.6 percent.

The broader S&P 500 is down 1.9 percent and the tech-heavy Nasdaq is down 2.2 percent.

Two pieces of good economic data this morning did little to prevent the markets' fall. April retail sales beat expectations and the early look at May consumer sentiment showed a slight increase from April's reading.

The problem with Europe right now is the instability in the euro currency. The euro continues to fall against the dollar. This is troubling for the U.S. economy because Europe is the biggest buyer of U.S. exports.

Investors seeking a safe haven are continuing to drive the price of gold higher. The precious metal is near a historic high of $1,250 per ounce.

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By Frank Ahrens  |  May 14, 2010; 4:22 PM ET
Categories:  Data , Deficit/debt , Wall Street  | Tags: Business, Dow Jones Industrial Average, Investing, NASDAQ, Retailing, S&P 500, april retail sales, frank ahrens, retail sales, stocks today  
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Next: Stocks stage major rally to finish up for the day

Comments

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Posted by: itkonlyyou59 | May 14, 2010 10:54 AM | Report abuse

THIS IS COMING TO WASHINGTON D.C. SOON. YOU GOTTA TAKE CARE OF YOUR BROTHER........HOW CAN ANYONE VOTE DEMOCRAT? BUNCH OF FOOLS


If you live in Philadelphia, higher property taxes and a fee for trash pickup may be two things you'll pay for next year.

Philadelphia City Council approved Mayor Michael Nutter's $3.9 billion budget for 2011 with a vote Thursday evening.

To fill in a $150 million budget gap, officials made several tax increases, the most notable being a 9.9-percent jump in property taxes, officials told NBC Philadelphia. That increase will only last for two years.

Posted by: twotimetuna | May 14, 2010 10:56 AM | Report abuse

The jeweler got my money this morning. Now I have gold to give away. I got a truck load of sand. Some beach. It will bounce back. If somebody is selling somebody is buying. High volume is high profit, so sell more. More is more.

Posted by: tossnokia | May 14, 2010 12:15 PM | Report abuse

Note to write: Euro is still a MIGHTY 24% MORE VALUABLE than US Dollar. Not less valuable, but MORE VALUABLE. And Euro will continue to be more valuable than US Dollar. You can bank on it. Why?
Because Europeans are not suffering from a party of Lunatics as US is with the Republican party and Europe is not suffering from a right-wing (aka Lying) war-mongering media as US is with such lying machines as Fixed news, Talkradio, Wall Street Journal, CNBC, etc. etc., as a result of which:
1- European Governments invest much more of their People's money (Taxes) in their people and cities via such things as Universal nationalized health care, Universal education to Ubiquitous (electric powered) public transportation etc.
2- European Governments do not waste their people's money on Unnecessary Wars (Iraq War, Vietnam War, etc.) or on a Gargantuan Military

So Euro is KING and will continue to be KING, will continue to be MUCH MORE valuable to the US Dollar, as long as the above problems (FACTS) with US exist. More on these points here:

More here:
http://RealNewsPost.com?n=think.34892

Posted by: RealNews1 | May 14, 2010 12:27 PM | Report abuse

EVERYBODY SHOULD BE WORRIED ABOUT THE STOCK MARKET:
First of all, we had a super mega rebound since last March without any significant correction until last week with a the 1000-point Dow gap.

Secondly, we have an idiot in the White House who's attacking Wall Street and our financial system over and over again, although he himself has no economic education and not an ounce of professional experience in economics, but instead he's pushing his weird communist agenda attacking the very fabric and core of our precious nation.

And thirdly, the EU is on the verge of collapse with rumors circulating that Germany has bought lots of gold reserves over the past few weeks in order to relaunch a new Deutsch Mark.
So far, the ECB and EU talk about their 1-trillion USD "emergency" package for the EU has no real teeth, it's just talk and the action is lacking and only delays the inevitable.

Also the flight into gold, although at the moment overbought, is a sign of increased fear. And sure the 1000-point drop in den Dow on May 6th didn't help investor's confidence that things are all rosy and hunky dory.

Posted by: scherf_com | May 14, 2010 12:33 PM | Report abuse

Running an economy on war is a waste of money. The accumulating debt of the cold war is now accumulating terrorist war debt.
Our accumulating planetary biospheric debts are about to come due too as well as atmospheric debts. You'd think we'd notice that ours assets are becoming holes in the ground.

Posted by: Wildthing1 | May 14, 2010 12:54 PM | Report abuse

Few if any investors are buying stocks for the income they can expect to gain from owning the stock. Instead they are buying the stock in the speculation that someone else will pay more for it tomorrow. The stock market has been driven upward at an unsustainable rate over the last year and more by large financial institutions that we recently learned traded over an extended period of time without so much as one loosing day. Much of that result was drivend by the Federal Reserve's massive injection of liquidity into the financial system. That process is over and the large financial institutions are coming under a large amount of legal scrutiny for their practice during the financial crisis. Those realities proably have as much or more to do with the current stock market action than Greece and the European's problems. We seem to have reached at least some kind of intermediate top in the stock market and the big momentum traders are changing their positions. We saw one drastic drop where the selling process got out of control. We saw a rapid recovery while the sellers backed away waiting for a better price. We are now seeing another sharp drop likely driven by those who want to avoid the risk of surprises over the weekend. We will probably see another sharp bounce upward Monday after nothing particularly bad happens over the weekend and the sellers have the patience to wait for a better price.

Posted by: dnjake | May 14, 2010 12:55 PM | Report abuse

Proof that Wall St. is a Republican stronghold...they operate on FEAR. Fear of shortage, fear of European economic problems, fear of inflation, fear of losing money day and night. Spinning hair into gold, the stuff of Republicans.

Posted by: clairevb | May 14, 2010 12:58 PM | Report abuse

Obama continues to ignore our own economy and job growth, or he is purposefully sabotaging it to advance his failed progressive liberal extremist Agenda.

Obama will look to give U.S. taxpayer dollars to Socialist European governments.

Republicans are trying to advance legislation to stop a European bailout with U.S. taxpayer dollars.

They said: "“The American people are fed up with taxpayer-funded bailouts and deserve to know we are bailing out Greece and possibly other European countries. If the Obama Administration has its way, the U.S. will contribute to a nearly trillion dollar bailout of European countries with economic crises that are a direct result of wasteful government spending.

“This legislation would require that countries like Greece cut spending and put their own fiscal house in order, instead of looking to the United States for a bailout. We face record unemployment and a debt crisis of our own, and American taxpayers should not be forced to bear the risk for nations that have avoided making tough choices."

AMEN

Obama is a national DISGRACE. Moderate Democrats please stand with anyone whether they be with your party or not to stop the radical progressive socialist waste of Amercian Working Class taxpayer dollars.

Progressives are total filth.

Posted by: ignoranceisbliss | May 14, 2010 1:22 PM | Report abuse

its time we shoulsd change our want of taxing people.we shouild cut our corperate tax from 35% to 0%cut our capital gains tax to 0% now too. we got get rid of free trade and go to back to fair trade.we have to much debt on the books. our social security should go to thirft saving plan just like our congrss and civil service workers have. i believe in personal responsibility no more nany state. we got rep[eal pres Obama healthcare plan now!

Posted by: jtrrailroad | May 14, 2010 1:38 PM | Report abuse

Remember that it was a "conservative" government in Greece that hid their 12 percent budget deficits using Goldman Sachs.

Not progressives. The progressives actually admitted rich people were bribing their way out of taxes and the conservatives had run up massive amounts of debt in Greece.

That said, two things need to happen:

1. The EEC should drop Greece from the participating nations in the EU currency until such time as they run five years of positive GDP and positive budgets. You can be a member nation of the EU and not participate in the EU currency - just ask the UK.

2. A lower EU is actually a good thing. It will encourage people like me with 11 weeks of vacation built up over the years to be a tourist in the EU, instead of just the US. Last time I went the EU was around $1.10 USD.

Posted by: WillSeattle | May 14, 2010 1:41 PM | Report abuse

The stocks are down because NO ONE believes the mindless happy news out of Washington.

Posted by: mibrooks27 | May 14, 2010 2:03 PM | Report abuse

Hmm. I smell a rat here. Right-wing press is too "gloaty" describing the troubles with the Euro (of which the Northern Europeans feel preciously little. They are not as dependant on exports to America, as America is dependent on export to Europe. Europe is fairly self-sufficient, if only for the fact that they do not use as many of the world's resources as America does)

Picture this scenario:

Goldman&Sachs "help" Greece keep their ill ways under wraps for the Euro commission. The Euro doe remarkably well. The Euro jumps from $0,89 in the infancy of the monetary union, to $1,50 at a certain point, basically because Europe still produces stuff inside their borders, and have the smooth infrastructure to get it around.

Greece joins the Euro-zone under false bookkeeping (again, aided by the sociopath brains at G&S).

Does not seem to be related....until, suddenly, Greece is "unmasked" and the Euro plummets.

What if..and just "what if" Greece was a satchel-charge, primed by American financial moguls, to blow the Euro out of the water, if push would come to shove? A well-crafted, carefully prepared form of "Economic terrorism" or, if you like, "blitzkrieg"

The Euro was getting bloody expensive and too important world-wide, slowly, but surely, Arab oil-producers started eye-ing the Euro as a viable determinant of oil-prices, as did a large part of Africa (diamonds!!). This, naturally, enraged&panicked the American $ to oil-based corporations, that saw their US-$ monopoly crumble, let alone the Wallstreet people that where all invested in Dollars "because the Euro could never get anywhere"

Buut TADAA Goldman&Sachs to the rescue: They had the detonator in their hands, and pushed it.

Kablooi! Euro gone...out of the water. Mega-profits in DOLLARS ensured. And that pesky, rather succesful thingy called "European-Union" eliminated. Nothing will stand in the way of Dollar-world-domination!

Far fetched? I don't think so. Wars with guns and bombs are soo "passe", they are no longer fought between "civilized" states. Wars nowadays are fought in the shady world of gargantuan financial deals, by bits,bytes, cisco-switches &processor time. No explosions, no apparent deaths .

War&terrorism as "clean" as it gets, yet , still "war" with ,as victims perpetually "the common man". A war fought by the elite, this time with computers as their soldiers, however with still the same purpose: "kill that which you do not understand, and get rich in the process"

it's just a "what if" scenario. Not something The CIA, NSA, or any other American special-intrest defending organisation could come up with. Isn't it?

Posted by: diakrite | May 14, 2010 2:05 PM | Report abuse

You ask when I'm retiring,
I'll tell you true,
Not 'til the 12th of Never,
Will I be through.

Posted by: rusty3 | May 14, 2010 3:50 PM | Report abuse

9.9% Unemployment (real numbers are over 17%)

7.5 Million Homeowners Stopped paying their Mortgage.

And Obama thinks Socialism is the Answer. I don't want my country to be like Greece.

Posted by: DemocracyRules | May 14, 2010 4:24 PM | Report abuse

9.9% Unemployment (real numbers are over 17%)

7.5 Million Homeowners Stopped paying their Mortgage.

And Obama thinks Socialism is the Answer. I don't want my country to be like Greece.

Posted by: DemocracyRules | May 14, 2010 4:25 PM | Report abuse

Looks like a problem from my fourth grader's workbook. So then, what is 'X' given the following sequence: Greece, Spain, Euro, Japan, X.

Posted by: jralger | May 14, 2010 4:33 PM | Report abuse


Last week it was Greece that suddenly declared bankruptcy and was quickly bailed out with nearly $1 trillion. Other countries are probably in jeopardy, too. So which country will be next?

This is similar to the millions of Americans who were swindled by the US real estate scam and are now walking away from their homes that are 50% or more under water. Our real estate swindle affected the global market and hurt many countries.

Which country will be next?

Posted by: maphound | May 14, 2010 4:57 PM | Report abuse

Looks like Bush's stock decline, which began in October of 2007, and which ended it's downward trend when Obama took office, is finally over.

Posted by: Andrea_KC | May 14, 2010 5:58 PM | Report abuse

To put today's DOW 10600 in some perspective,consider it was three hundred points higher in Jan. 2000.

Posted by: slim2 | May 14, 2010 6:23 PM | Report abuse

Yes the toy casino at the top of the world will continue to skim from us all but the thieving few on the inside who believe it's all theirs for the taking.

Posted by: btmsp | May 14, 2010 7:16 PM | Report abuse

Yes the toy casino at the top of the world will continue to skim from us all but the thieving few on the inside who believe it's all theirs for the taking.

Posted by: btmsp | May 14, 2010 7:18 PM | Report abuse

Who cares!!! My boyfriend thinks the same with me. He is eight years older than me, lol. We met online at Agelessmatch.com, a nice place for Younger Women and Older Men, or Older Women and Younger Men, to interact with each other. Maybe you wanna check out or tell your friends.

Posted by: jane_fark | May 14, 2010 7:36 PM | Report abuse

Who cares!!! My boyfriend thinks the same with me. He is eight years older than me, lol. We met online at Agelessmatch.com, a nice place for Younger Women and Older Men, or Older Women and Younger Men, to interact with each other. Maybe you wanna check out or tell your friends.

Posted by: jane_fark | May 14, 2010 7:50 PM | Report abuse

Who cares!!! My boyfriend thinks the same with me. He is eight years older than me, lol. We met online at Agelessmatch.com, a nice place for Younger Women and Older Men, or Older Women and Younger Men, to interact with each other. Maybe you wanna check out or tell your friends.

Posted by: jane_fark | May 14, 2010 7:53 PM | Report abuse

Who cares!!! My boyfriend thinks the same with me. He is eight years older than me, lol. We met online at Agelessmatch.com, a nice place for Younger Women and Older Men, or Older Women and Younger Men, to interact with each other. Maybe you wanna check out or tell your friends.

Posted by: jane_fark | May 14, 2010 7:57 PM | Report abuse

Who cares!!! My boyfriend thinks the same with me. He is eight years older than me, lol. We met online at Agelessmatch.com, a nice place for Younger Women and Older Men, or Older Women and Younger Men, to interact with each other. Maybe you wanna check out or tell your friends.

Posted by: jane_fark | May 14, 2010 8:01 PM | Report abuse

World Government


The World Health Organization is moving full speed ahead with a controversial plan to impose billions of dollars in global consumer taxes on such things as Internet activity and everyday financial transactions like paying bills online — while its spending soars and its own financial house is in disarray.

http://www.foxnews.com/world/2010/05/10/world-health-organization-moving-ahead-billion-dollar-internet-tax/

Posted by: AJAX2 | May 14, 2010 8:46 PM | Report abuse

World Government


The World Health Organization is moving full speed ahead with a controversial plan to impose billions of dollars in global consumer taxes on such things as Internet activity and everyday financial transactions like paying bills online — while its spending soars and its own financial house is in disarray.

http://www.foxnews.com/world/2010/05/10/world-health-organization-moving-ahead-billion-dollar-internet-tax/

Posted by: AJAX2 | May 14, 2010 8:47 PM | Report abuse


Keep it optimistic and people will continue to gamble in the stock market.

The market is down 5,000 points from its recent all time high, but it is up 4% (400 points) this year.

And earlier this year it was reported that the market broke even for the decade of the 1990's, which had never happened before.

So, do you still feel optimistic and all whoozie for the stock market performance? Of course if you are a government employee it does'nt matter what the market does because your pension is protected by taxpayer (private sector) money and you will get a garunteed minimun return on your investment with the special plan.

Posted by: maphound | May 14, 2010 8:58 PM | Report abuse

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