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

Stocks end day in another sharp sell-off

UPDATED at 4:09 a.m.:

An up-and-down day on Wall Street finally decided what it wanted to be in the last hour of trading. Unfortunately, it decided it wanted to be another sell-off, right on the heels of Friday's big losses.

The Dow closed down 1.2 percent at 9,816.49. The Dow is now down 3.2 percent for June and 5.9 percent year-to-date.

The broader S&P 500 closed down 1.4 percent 1,050.47.

The tech-heavy Nasdaq closed down 2 percent at 2,173.90.

The Dow and the S&P closed at their lowest levels since November of last year. The Nasdaq hit its lowest level since February of this year.

Oil closed down half of 1 percent at a little more than $71 per barrel. Gold was up nearly 2 percent at nearly $1,240 per ounce.

Despite the back-to-back lousy days on Wall Street, Secretary of Energy Steven Chu said on CNBC moments ago that the U.S. economy is strong, citing recent consumer confidence numbers.

On the other hand, in this piece in the today's Wall Street Journal, supply-side tax guru Arthur Laffer predicted the collapse of the U.S. economy in 2011, when President Obama rolls back President Bush's tax cuts.

Stocks turn negative at mid-day

11:35 a.m.: Stocks have turned negative as mid-day trading approaches, as Wall Street follows the continued slide of the euro, a sign of Europe's financial stability.

The Dow is down two-tenths of 1 percent.

The broader S&P 500 is down two-tenths of 1 percent.

The tech-heavy Nasdaq is down eight-tenths of 1 percent.

The euro is trading at less than $1.20 and seems unable to pull itself off its four-year lows. Hungary tried to restore some investor confidence today, following Friday's irresponsible remarks from a government official who committed honesty, saying his government may be near default.

The European markets have just closed, with the London's FTSE closing down 1.2 percent, Germany's DAX closing down eight-tenths of 1 percent and France's CAC 40 closing down 1.5 percent.

In other news, Chrysler announced today that it would recall some 600,000 vehicles, including 280,000 2008 and 2009 minivans and 290,000 Jeep Wranglers from 2007 to 2010.

Stocks up at opening

10:06 a.m.: Stocks are slightly up at opening today, following the big sell-off that came Friday after the disappointing jobs report.

The Dow is up three-tenths of 1 percent.

The broader S&P 500 is up four-tenths of 1 percent.

The tech-heavy Nasdaq is up four-tenths of 1 percent.

The markets were hammered on Friday because of a disappointing jobs report -- showing that census hiring accounted for almost all new jobs -- and by surprise news out of Hungary, where an official somewhat blithely said his country was at risk of default(!).

Today, Hungary reversed course and tried to calm fear in the markets.

"Damage control in Hungary where government officials tried to distance themselves from Friday's reckless comments from a spokesman on their finances and a reiteration of their pledge to meet IMF budget targets are helping to lift markets off their early morning lows," writes Miller Tabak equity strategist Peter Boockvar. "Not becoming the next Greece is the European rallying cry to get budget cuts passed and there is nothing like a crisis to get politicians to act."

Even BP stock is getting a little relief today, following weekend reports that the oil giant is experiencing some success in trapping escaping oil. Shares of BP are trading up 1.6 percent.

By Frank Ahrens  |  June 7, 2010; 4:09 PM ET
Categories:  Wall Street  
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Comments

There was no rebound... Once something hits the ground it bounces after a free fall. Throw something off a building and it will bounce no matter how hard it is. It is like we are falling down a flight of stairs, or several flights

After the Governments total failure on the economy it is amazing we have not gone into total collapse.

Thus far we have spent 800 billion on the recovery act. I for one don't see a recovery... For $800 Billion I would thing we would have a huge economy. However we spent $800 Billion and things are worse...

Support Tier 5 unemployment at Change.org at leas tit was feeding families and only cost a few hundred million. It is worth that to keep the homeless off my lawn...

Posted by: Tim_incubator | June 7, 2010 12:15 PM | Report abuse

The candles are showing another sell-off day tomorrow, let's see what happens.
does WPost have some technical analyse?

Posted by: wagnerlegiao | June 7, 2010 4:24 PM | Report abuse

$800 billion is a drop in the bucket compared to our economy. $800 billion doesn't even pay for the real estate of New York City.

Unfortunately, the "free market" that's thrived off of government incompetence and friendliness hasn't come through for the American people.

Posted by: fbutler1 | June 7, 2010 8:02 PM | Report abuse

$800 billion is a drop in the bucket compared to our economy. $800 billion doesn't even pay for the real estate of New York City.

Unfortunately, the "free market" that's thrived off of government incompetence and friendliness hasn't come through for the American people.

Posted by: fbutler1 | June 7, 2010 8:02 PM | Report abuse

The Government spent $ 800 Billion for nothing (...or almost nothing !)
I have a ready project,which can create about 9,5 MILLION new jobs in the USA, within a very short amount of time!
Budget needed : $ 49,2 Billion !
I need the US Government's cooperation to realize it !
Since March 25,I tried my best to contact President Obama and his Administration by sending e-mails,certified letters and fax(s).
NOBODY pays attention !
The time is running out for 15 millions of unemployed American people !
The Government spent $ 800 Billion for nothing (...or almost nothing !)
Is the $ 49,2 Billion too much to invest for 9,5 million new jobs ??
What else can I do ?!
My project is ready !!
Kalman Menyhart , Sherman Oaks , CA

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