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The Dow
closed at its lowest point since August 2006, falling 237 points
to close at 11,147. The NASDAQ dropped 60 points to finish at
2,235. The Dow’s closing point marked a 21% decline from it’s
high of last October. Traditionally, a decline of 20% or more
has been considered a bear market.
The
internet sector followed the broader markets sell-off. Orbitz (OWW)
was one of the biggest losers falling almost 10% today. However,
they weren’t the only stock experiencing big losses today as
Move (MOVE), Overstock (OSTK), Amazon (AMZN), IAC Interactive (IACI),
and Limelight Networks (LLNW) all fell 6%, while The Knot (KNOT)
fell 7%.
Surprisingly even with the big sell-off today there were still a
few bright spots. ZipRealty (ZIPR) and Sohu (SOHU) both gained
5% on strong trading volumes.
The
psychological effect of closing in bear market territory could
be significant. It will be interesting to see how investors
react in the coming days. Is this a great buying opportunity or
is the worst still to come?
At the time this article was
published, the author did not have a financial position in any
of the stocks mentioned in this article.
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