Stocks plummet after retail, unemployment data
The numbers released Thursday were a sign that despite some upbeat reports over the past month, the economy remains deeply troubled. Investors are not expecting any promising news in the August jobs report, particularly after the ADP National Employment Report said that private sector employment decreased in August by 33,000. Economists are predicting the government will report the eighth straight monthly payrolls drop, and a rise in the unemployment rate.
The market was so disheartened that it showed little reaction when the Institute for Supply Management said the service sector grew unexpectedly in August for the first time in three months as new orders increased and inflation moderated. The August reading of 50.6 was higher than the 50.0 expected, and the reading of 49.2 in July; but the sector's edging above the threshold between contraction and expansion was hardly a sign of a robust economy.
An economic recovery appears to be far off to investors — and with the Dow down more than 15 percent for the year so far, they don't appear to be holding out for a significant upturn in stocks, either.
"We're seeing nothing but sellers," said Ted Oberhaus, director of equity trading at Lord, Abbett & Co. "In a bear market, you sort of really don't need an excuse to sell."
The Dow fell 344.65, or 2.99 percent, to 11,188.23. It was the worst drop for the blue-chip index since June 26, when it fell more than 358 points, or 3.03 percent.
Broader indexes also tumbled. The Standard & Poor's 500 index fell 38.15, or 2.99 percent, to 1,236.83, and the Nasdaq composite index dropped 74.69, or 3.20 percent, to 2,259.04.
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Member Comments
Posted By: OnlyCureJGK @ 08/05/2008 3:28:02 PM
Comment: The problem is simple corruption needs to be stopped beginning with those who have profited for years from corruption. Please look up this individual ---- Nelson Wilmarth Aldrich ---- he was the father in law of Mr. Rockefeller who's family went on to controll the private banks which became the central bank the FED which is a private institution. This individual Nelson came up with the Income Tax and The Central Bank. Follow the money and you will find the corruption behind the problems in society. For 240.00 the Central Bank the Fed can create 1 million dollars then using the IRS they can bilk the public for 1 Million plus interest. Its easy math to see they have the complete control of the US government and even the world. Money is the root of all evil. Look up the owners of Standard oil it is a circle leading right back to the FED.
Posted By: techresmgt @ 06/30/2008 1:53:39 PM
Comment: The media makes me laugh; this headline would lead one to believe a massive recovery of the Dow and a substantial reduction in oil. The reality is that the Dow is up a mere $34 from Friday's lows, and oil plummeted by a whopping $.064 and has settled at $140/barrel. Now that is change we can believe in.
Posted By: Karenn1 @ 06/09/2008 8:46:44 AM
Comment: Red light,yellow light drone training policy of the Republicans.Can do any thing they want. to american. They have.corruption,treason,incompetemt policy,toothless N Y,above the law practices,contitutional rape.So now were outrage .Why ,America is glutton for pushinment,vote for McCain.Israel plans to attack Iran,they seem to run are foreign policy.So who cares,gas is $4.00 a gal.