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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Late-day slump takes stocks into red, erases day's gains

Updated at 4:07 p.m.:

Stocks turned negative in the last 30 minutes of trading today, wiping out triple-digit gains from a day spent largely in positive territory.

The Dow broke the 10,000 level again, closing down seven-tenths of 1 percent at 9,974.45.

The broader S&P 500 closed down six-tenths of 1 percent at 1,067.93.

The tech-heavy Nasdaq closed down seven-tenths of 1 percent at 2,195.88.

Some analysts blamed the downturn on profit-taking ahead of what is expected to be strong jobs growth in the unemployment number released next Friday. Others say it's a cyclical pullback in an otherwise bull-market rally that began in March 2009.

The falling euro is also dragging down stocks, which have struggled to find consistency on the upside. The S&P 500 has not put together a two-day rally since late April, and neither has the Dow.

Stocks rally globally as April U.S. durable goods orders rise

9 a.m.: Asian markets took the baton from Wall Street overnight and continued the rally that U.S. stocks began in mid-afternoon yesterday.

The Nikkei and the Hang Seng both closed up with strong sessions. Europe has followed this morning, as the rally continues around the globe. London's FTSE, Germany's DAX and France's CAC 40 are all up 2 percent on the day.

Here in the U.S., futures are up and stocks might take some cheer at opening from this morning's report on April durable goods orders, which was released moments ago and exceeded expectations.

According to the government, orders for durable goods in April -- that's everything from airplanes to refrigerators -- rose 2.9 percent, more than double expectations.

The March durable goods orders number was also revised upward significantly, up from 2.8 percent to 4.8 percent.

However, if you remove transportation goods from the number -- items like cars and airplanes -- then the April number actually went down 1 percent. It's a good bet the April number was goosed by lots of auto sales that were driven by heavy incentives. Also, Boeing and other airline companies delivered more planes.

Overall, this is not bad economic news. It says that, given incentives, consumers are willing to spend. We'll know more later this week, when April consumer spending numbers are released on Friday.

By Frank Ahrens  |  May 26, 2010; 4:07 PM ET
Categories:  Data  
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Comments

So tell me how well the recovery is going?
Do we need another stimulis,Bailout for teachers

Posted by: jburo | May 26, 2010 4:37 PM | Report abuse

So how's that hopey-changey thing working out for y'all?

Posted by: leafgreen | May 26, 2010 4:45 PM | Report abuse


Good thing we did not listen to WaPo hacks like Allan Sloan who are completely in the bag for Barry the incompetent boob Obama. Sloan said just ignore the "market jitters" (WaPo euphemism for market crash). Did we? Hmm?

A fool who buys into a falling market deserves to be parted from his money. So does a fool who stands pat while the market is crashing.


Posted by: screwjob15 | May 26, 2010 4:49 PM | Report abuse

You work and work and save and then invest what you can save.Then the NY jeuwes steal it from you.And you dont have the guts to do anything about it.All in all,you get what you deserve

Posted by: orangepeel12112 | May 26, 2010 4:52 PM | Report abuse


Corrected headline: LATEST slump takes stocks into red

The latest of many but hardly the last.

Posted by: screwjob15 | May 26, 2010 5:00 PM | Report abuse

Odumbo must have made another speech today.

Posted by: rg019571 | May 26, 2010 5:03 PM | Report abuse

Folks the Anti-business Party is in power, the Democrats and they are fully supported by our corrupt liberal/progressive MSM wolfpack press.

What company would want to do business in America today?

Business is where all our wealth comes from and its been under attack ever since Obama was installed/elected in November 2008.

We are NOT headed in the right direction.....

Posted by: allenridge | May 26, 2010 5:07 PM | Report abuse

allenridge:
"Business is where all our wealth comes from and its been under attack ever since Obama was installed/elected in November 2008."

Are you posting from an alternate universe?

Posted by: presto668 | May 26, 2010 5:31 PM | Report abuse

The problem is two-fold: globalizaton and the curent culture, which is one of extremes. Either everyone is yelling buy, buy, buy or sell, sell, sell. The market was not designed to be a rollercoaster but that is what the modern culture has turned it into. And with globalization, we are instantly affected when the European Union makes mistakes. Now it seems, if the Euro goes up, it's bad for the US economy. If the Euro goes down, it's bad for the US economy. Logic would seem to dictate that one or the other condition should be good for the US economy but with all the intertwining, it kills us either way.

Posted by: Georgetowner1 | May 26, 2010 5:39 PM | Report abuse

Where's all the chest beating from the presumably neutral press about this? After all, they kept telling us when the Dow was up a few weeks back that Obama's regime was responsible for the reasonable gains.

So is it now his fault when the economy is now officially flat?

When people keep getting laid off, will they keep blaming Bush? When is it Obama's fault?

Suckers.

Posted by: Ombudsman1 | May 26, 2010 6:29 PM | Report abuse

OBOZO THE CLOWN AND THE DEMOCRATS ARE NOTHING BUT THIEVES. THEY TAX THE WORKING PEOPLE AND GIVE IT TO THEIR WORTHLESS FRIENDS.

Posted by: charlietuna666 | May 26, 2010 7:23 PM | Report abuse

It is very clear that Obama is doing more harm than good. If he really wants to do some good he should pass a law that allows the stock exchange to operate for one hour per day. That would be between the hours of 3pm and 4pm. That is when everything happens. Whatever happens before then is meaningless. Today was a good example.
The analysts do not have a clue. They should all be put on unemployment.
I don't think you have a clue either. You should go stand on line with the analysts.

Posted by: nychap44 | May 26, 2010 7:24 PM | Report abuse

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