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The Dow
posted its fourth consecutive day of triple digit losses, ending
down 508 points to close at 9,447. The last five trading days
have seen the Dow shed over 1,400 points and many believe it
will only get worse. The Nasdaq plunged 108 points to 1,755,
while the S&P 500 finished below 1,000 after falling 61 points
today.
Over the
past few turbulent months, the market has had many days of
significant triple digit drops. However, it seemed to always be
quickly followed up by a strong market recovery. Now there
doesn’t seem to be a market rally in sight. The Fed appears to
have fired all of its bullets and still have not stopped this
runaway train.
Disappointing earnings and even more depressing commentary from
Bank of America sent its shares plummeting 26% to finish at
$23.77. Dow components Citigroup, General Electric and JP Morgan
all saw their shares decline by over 10%.
In the
Internet sector, 34% of the company’s hit new 52-week lows (16
out of 47 stocks). This included previous high flyers like
Google, Shutterfly, Amazon and eBAY.
Netflix
dropped 16% to finish at $22.31. The company announced reduced 4th
quarter guidance on disappointing subscriber growth.
The
airline sector saw even greater declines as reduced consumer
demand is expected to hit their top and bottom lines. United
Airlines fell over 25% today after falling 17% yesterday. Delta
and Northwest also fell over 20%.
Investors
continued to buy gold today sending prices up $20.90 to $887.10
an ounce. Silver also posted a nice gain, increasing $.32 to
$11.61 an ounce.
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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