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DOW Drops Over 200

Big jobless claims and worse than expected manufacturing numbers helped make for a bad day on Wall Street.

Stocks tumbled Thursday after a disappointing ISM report on manufacturing piled on to worries about the economic recovery.

The Dow Jones Industrial Average lost more than 200 points, or 2.1 percent -- it's worst decline since July 2, which was before the summer rally began. The S&P 500 fell 2.4 percent and the Nasdaq dropped 3.1 percent.

In my column at AIP today I talk about how the administration is going to be spinning numbers like these for the next few years, as well as pointing to their own fictitious numbers like their "jobs saved" claims.


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Comments (23)

or was it because the Dems ... (Below threshold)

or was it because the Dems continued to push their job and economy killing health care package through Congress? or was it because Obama failed to do anything of substance about Iran's nuke program and continues to dicker over what to do in Afghanistan?

Who knows, but with millions upon millions of investors - some small, some not so small - making decisions on what to buy and what to sell, I am skeptical of anyone who claims to be able to speak for the market.

OK, where's that obama-dron... (Below threshold)
Marc:

OK, where's that obama-drone that was crowing about how well the economy was and that he had gained 60 percent on his stock portfolio?

Oh, and BTW strum, I agree with your point and is why I noted the obama-drone,s claims of a couple weeks ago. Anyone that claims the SM is any indicator of the economy is a blithering idiot.

But I have to add another possibility, the car market crashed BIG time after the cash for clunkers surge abated. And I believe the same drone was touting how "great" that piece of cow dung was.

Hmm, so much for the White ... (Below threshold)

Hmm, so much for the White House using the "create or save X million jobs" turn of phrase. We all knew where that was headed.

But...But...But...... (Below threshold)
jim m:

But...But...But...

THE ECONOMY IS BOOMING!!!!!!

The Dow is still at 1999 levels everybody. The economy is still pretty stagnant and unemployment is not getting any better.

It's long-overdue profit ta... (Below threshold)
Steve Green:

It's long-overdue profit taking. The stock market is up big time this year - up over 60% for areas like high tech.

Big money was made this year by not following the advice of the right wing naysayers.

I can hardly wait for the L... (Below threshold)
GarandFan:

I can hardly wait for the Labor Dept. figures that are supposed to come out tomorrow. Or will Barry impound those? Hell, it's time for the "weekend document dump" anyway. You know, when Team Barry releases all the 'bad news' that's not fit for him put out in BREAKING NEWS CONFERENCE NUMBER ______!.

The NASDAQ index stood at 1... (Below threshold)
Steve Green:

The NASDAQ index stood at 1466 on Obama's inauguration day and closed today at 2057 - up 40%. If you bought in March of 09 you'd now be looking at a 70% gain.

Funny how right wing blogs never told that. They never mentioned the huge run up and profits being made and the 401Ks being restored after Bush tanked the economy in 2008.

But now, when profit taking causes a drop in the index they get all concerned about your well-being -- when it's too late and everybody else is cashing in on the profits made by ignoring the right wing doomsayers.

These folks do not have Americans' interests at heart, that's clear. These political animals are only interested in power.

"They never mentioned the h... (Below threshold)
GarandFan:

"They never mentioned the huge run up and profits being made...."

Yeah, that explains all the continuing layoffs, doesn't it? And all those people 'going back to work'.

Steve Green: are you giving... (Below threshold)

Steve Green: are you giving Obama credit for the run up?

Steve Green - And ... (Below threshold)
jim m:

Steve Green -

And if you bought in on Oct 10, 2007 you would be down 27%. Your point?

Most people are in the market for the long haul and few if any can call a top or bottom correctly. The vast majority of investors look at where the market was and see where it is today and are not fully satisfied that things are as they should be.

Having earlier said that no... (Below threshold)

Having earlier said that nobody really knows what makes the market go up and down, my take is that investors over-reacted last fall in selling and the recent rise was attributable to the panic dissipating but was not full fledged optimism that all is well. in other words, I think we're now at where we would have been had the people not panicked...

Wow! On 9/11 the markets fe... (Below threshold)
WildWillie:

Wow! On 9/11 the markets fell while in the Clinton recession. GW's administration put all the right things in place to let the market rebound and thrive. I am sure Stevie Green just crowed about how well the total market was doing. I am sure he wasn't hoping GW would fail. No. Never. Stevie, you win the butt hole of the week contest. ww

From what I've seen, read a... (Below threshold)
GarandFan:

From what I've seen, read and been told, there's still a big chunk of money sitting out the market. Only one's "in" are those who have to as they've no place else to go. Picture 4 guys at a poker table. Same amount of money, no more, no less after 4 hours of play. Yeah, someone "won" and walks away with more than they started.

In the mean time, unemployment lines lengthen, heavy manufacturing is down, demand for fuel is down, but hey, consumer spending went up slightly in September! Oh, maybe that was because of THE NEW SCHOOL YEAR?

Yep, Joey Biden was right, 'green shoots' everywhere.

Recevied a wonderful email from State Senator Kehoe (D).

"The California Public Utilities Commission announced last month a $3 billion statewide program to reduce energy use by retrofitting 130,000 homes, training 15,000 clean energy workers, and using more efficient appliances.

The three-year program will be coordinated by companies like San Diego Gas & Electric and paid for through customers' utility bills."

So I get to help pay to retrofit someone else's home. And according to Kehoe will
"see small increases" in my monthly bill.

Oh, the joy!

s green - and your proof th... (Below threshold)
Marc:

s green - and your proof the loss was due to profit taking is what?

Your proof that higher than expected unemployment figures, auto sales down 35 plus percent across the board from the August surge of sales and consumer confidence still hovering around "shitty" DIDN'T cause the loss is what?

HaThe White House ... (Below threshold)
Tim:

Ha

The White House is not going to be "spinning numbers like these for a few years"

We don't have a few years. They'll be spinning something, for sure, but they'll look back at some of these numbers with longing. Most people - and that includes most people here - have no freakin' clue how much deep shit we are in.

Blather about "profit taking" and "panic" and other business as usual nonsense is pointless; volume is down massively, and half of what volume there is consists of a few large institutions pumping the market with algo trading and your bailout money while the .gov looks the other way because higher indices help them sell their bullshit recovery. Anytime we see anything near normal volume, the market tanks - because unlike computers that don't give a shit, human traders are getting the fuck out of dodge.

The Treasury, the Fed, and the White House are frantically trying to reinflate a half a dozen bubbles to keep the wheels from falling off - I honestly wonder if they are trying to hold out until midterms, or if they actually think they can shoot for 2012. They haven't a chance in hell, because you can't talk your way out of real people really not having real jobs.

No one really knows exactly what the fallout from the administration's insane fiscal policies, financial cronyism, and business-panicking socialist power grabs will be. There is no "normal"; there is no level the market "should" be at. Our nation is insolvent, thousands of our banks are insolvent, the FDIC is insolvent, and all the while the administration is smoking crack and basing projections on 3+ % GDP growth from here on out. Irreversible actions have been taken and somewhere there is a giant fucking shoe - or ten, or one hundred - already in the process of dropping.

And just for some extra fun, the administration wants to take all those angry unemployed types and poke them with sticks like cap and trade, new bullshit taxes, and healthcare mandates. Right. I'm sure that will end well.

Psssst, s green, or <a href... (Below threshold)
Marc:

Psssst, s green, or it could be this: "Demand for long-term Treasurys soared Thursday, sending yields to levels not seen since the spring, as stocks tumbled on disappointing manufacturing and jobs data"

Which means they are bailing out for a safer investment than the market.

Riiight, because treasuries... (Below threshold)
JustRuss:

Riiight, because treasuries are a safe bet. They can always print the money when you cash them in...

We are so screwed.

justruss - "Riiight, be... (Below threshold)
Marc:

justruss - "Riiight, because treasuries are a safe bet. They can always print the money when you cash them in..."

What, you didn't spy my tongue firmly in cheek when I said that?

The idiot Berneke lied when asked if the Treasury would buy it's own debt. He said no at a congressional hearing.

Within 6 weeks the NY fed sold 5 billion in treasury notes to a private party. Less than a week later the Fed bought it back.

He lied, the dollar is dying.

Steve Green, you are a moro... (Below threshold)
Alan:

Steve Green, you are a moron.

200 was a drop in the bucke... (Below threshold)
Gmac:

200 was a drop in the bucket...
Just wait till higher taxes and inflation kick in, you haven't seen ANYTHING yet.

I have a different question... (Below threshold)
wolfwalker:

I have a different question: why is everyone calling a 200-point drop a "tumble?"

This recent stock zoom has always looked like a sucker's rally to me. I never understood why stocks started going up again in March. There was not then, and is not now, any real evidence that the economy's fundamentals have improved. So I expect the market to fall again -- really fall, back under 9000, maybe below 8000. On that scale, 200 points barely qualifies as a blip. When it falls 500 in a day, or 1000 in a week, that's a tumble.

@steve green:The D... (Below threshold)
_Mike_:

@steve green:

The Dow is up +17% since inauguration (which is an arbitrary day) but gold is +19% in the same time frame. So while the dollar based value of the Dow has increased, the gold based value of the Dow is -2%. But yeah right now, go put every penny of your wealth (both dollars) in the market. I hear you don't have to pay your mortgage now that Obama's President.

"The Dow is up +17... (Below threshold)
914:

"The Dow is up +17% since inauguration "

Hey! What do You know! Its keeping pace with unemployment!




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