Dow Jones plunges over 634 points, closing at least the market for the first time, the S & P downgrade Friday
- "Panic" selling, Obama cited "renewed sense of urgency" to address the deficit may not end market
- Monitoring of degradation of S & P Stoke other concerns, Russell 2000, the biggest stage of history in a single day percentage
(Updates with additional shares of the motors, the closing price and the context around.)
By Brendan Conway
Dow Jones Newswires
New York (Dow Jones) -. By U S. plunged Monday in a defeat that sent the Dow Jones Industrial Average has fallen to sixth percentage in history, due to a toxic mix of investor concerns on debt and the likelihood that the economy slipped into another recession.
Dow Jones Industrial Average 634.76 points, or 5.55%, fell to 10,809.85, falling below 11,000 for the first time since November, adding to heavy losses last week. The blue-chip measure finished just off session low in the loss of the most important days of a percentage point from December 1, 2008.
Monday was the first trading day after Standard & Poor's downgraded the credit of the federal government on Friday. Investors fled risky assets in the distance. 9710000000 shares changed New York Stock Exchange composite volume, the fourth highest total in history one day.
Future of the most active gold for December shot up to $ 1713.20 to $ 61.40. U. S. Treasury was a winner, despite the reduction of credit, performance on the 10 years since the fall of the lowest level since January 2009.
"Everybody looks at what they consider a safe haven, even if it is simply illogical," said David Kelly, chief strategist at JPMorgan Funds. "Things are pretty bleak right now."
Major stock indexes down for much of the session activation, reduced body S & P pure entities Fannie Mae and Freddie Mac, and reduced prospects for the company that Warren Buffett Berkshire Hathaway, after decommissioning U.S. S & P AA-credit to more than triple a Friday night.
Standard & Poor 500 stock 79.92 points, or 6.66%, fell to 1119.46, falling from October to November sessions. Financial components have decreased by 10% while the S & P 500 fell 8.3% in energy. He is one of 500 shares included in the overall index ended in positive territory. Nasdaq Composite 174.72 points, or 6.9%, falling to 2,357.69.
The Russell 2000 stocks capitalization of the index fell more in one sitting in its history, falling 63.67 points, or 8.91% to 650.96. Small caps tend to be more exaggerated movements and is generally considered more risky than shares of large companies in general.
The fact that the current collapse was right on the heels of the loss of largest weekly point the Dow Jones since the financial crisis in 2008, many players created to forced sales and margins, dealers said. He was part of the loss of self-sustaining. Also raised the possibility of surrendering, when losses snowballs craters and feel the markets to find an apartment.
"There are a lot of forced liquidation," said Lorenzo Di Mattia, manager of Sibilla Global Fund, and these measures "may perhaps take another day."
In an early sign that the operation could be volatile on Monday, the New York Stock Exchange, little-used Rule 48 hours called for the opening of the Exchange. The procedure may be market makers to refrain from disseminating price before the clock, making it easier and faster to trade on the stock markets open.
Bank of America fell $ 1.66 or 20%, to 6.51 for blue-chip with a low, well beaten by a sharp sell-off from financial and speech that the American International Group, the company responsible a number of other large financial institutions that attempt to recover losses in securities backed by home loans. AIG fell by 2.52, or 10%, to 22.58.
The miners of gold and precious ETFs metals bucked the trend, in general, such as precious metals higher. AngloGold Ashanti rose 20 cents, or 0.5%, to 42.01 and 5.37 earned SPDR Gold Trust, or 3.3%, to 167.12. Newmont Mining was early, but closed 28 cents, or 0.5%, to 54.13.
Barack Obama did little with the fear of investors in the afternoon from Monday to remove said downgrade by S & P may have a renewed sense of urgency "in the absence of address. The proportion of successful new lows, while the president spoke, and then again.
Concerns about the strength of the global economy seemed so big, if not more than credit issues for many investors. Fears of a slowdown hit last week.
"The market is probably more concerned about the economic risks of the S & P rating," said Bernie McDevitt, vice president of operations Cheevers & Co.
In the new companies, paid by blue chip telecommunications company Verizon Communications 1.93, or 5.5%, to 33.12, after about 45 000 workers went on strike this weekend due to a contractual dispute.
McDonald lost 2.97, or 3.5%, to 82.11, despite posting a 5.1% increase in comparable store sales in July, reflecting growth in all regions.
Berkshire Hathaway Class B shares fell 4.60, or 6.5%, to 66.65 after the company of Warren Buffett, announced a second-quarter profit from operations decreased last year as insurers of Business has suffered a loss.
Transatlantic Holdings, one of the few things about the stock market Monday. Berkshire Hathaway has become the third company in recent months to bid for a reinsurer to provide, to help your balance to more than 3.7, or 6.8%, to 48.31.
Morgan Stanley fell 2.90, or 14%, to 17.12. The company said in a regulatory application Monday to downgrade credit ratings of the United States to "negative" impact on financial markets and their own business.
OfficeMax fell 1.49, or 22%, to 5.43, after Goldman Sachs analysts cut their recommendation on the office products retailer to "neutral", said he saw "a difficult process, conducted interviews with industry catalysts bit.
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