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| Politics Forum Index » Democrats (House) Politics Forum » Teleprompter ON, Stocks slide for 2nd straight day.... |
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| Major Debacle... |
 Posted: Fri Sep 25, 2009 1:27 pm |
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http://money.cnn.com/2009/09/24/markets/markets_newyork/?postver
sion=2009092418
NEW YORK (CNNMoney.com) -- Stocks slumped Thursday, falling for
the second straight session, as a surprise drop in existing home
sales and tumbling commodity prices gave investors a reason to
sell into a rally that pushed the major gauges to one-year highs.
The Dow Jones industrial average (INDU) lost 41 points, or 0.4%.
The S&P 500 (SPX) index fell 10 points, or 1%. The Nasdaq
composite (COMP) declined 24 points, or 1.1%.
Declines were broad based, with 2 out of every 3 Dow stocks
sliding, including GE (GE, Fortune 500), Alcoa (AA, Fortune
500), Bank of America (BAC, Fortune 500), Chevron (CVX, Fortune
500), Boeing (BA, Fortune 500), Caterpillar (CAT, Fortune 500),
Hewlett-Packard (HPQ, Fortune 500) and United Technologies (UTX,
Fortune 500).
Stocks gained in the early going after the Labor Department
reported that jobless claims fell for the third week in a row.
But the market abandoned gains after the housing report. A slide
in oil and gold shares on the back of a stronger dollar dragged
on commodity stocks.
Stocks slipped Wednesday, falling from almost one-year highs,
after the Federal Reserve kept interest rates unchanged and
essentially maintained its recent economic outlook. A week ago,
Fed chief Ben Bernanke said the recession was very likely over,
but the labor market still has a long way to go.
In the short term, "there's not a whole lot of bad news that
could derail equities," said Robert Siewert, portfolio manager
at Glenmede. "But the rally since March has been the sharpest
since the 1930s and it's not surprising to see occasional
pullbacks."
However, Siewert said that longer term, there are a lot of
headwinds that could challenge stocks, with 2010 likely a
tougher year for equities. He cited challenges including the
eventual rising of taxes, the labor market weakness, the still-
tight credit market and the struggle of a consumer that chooses
to save at the expense of personal spending.
Friday brings government reports on new home sales and durable
goods orders, as well as the University of Michigan's September
consumer sentiment index. |
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