posted on April 15, 2005 08:04:24 PM new
Updated: 09:49 PM EDT
Stocks Plunge, Capping Lousy Week on Wall Street
Worries About Inflation, Economic Growth Take Toll on Markets
By MICHAEL J. MARTINEZ, AP
NEW YORK (April 15) - Wall Street suffered its worst single day in nearly two years Friday, with the Dow Jones industrial average falling 191 points for its third straight triple-digit loss. Deepening concerns over economic growth and higher prices led to the worst week of trading since August.
An already uneasy market began the biggest one-day selloff since May 19, 2003, after the Federal Reserve reported drops in manufacturing and other industrial production, and a Labor Department report showed higher oil costs driving up import prices.
The selloff was bolstered by lower-than-expected profits from IBM Corp., which led to fears that technology spending would be substantially worse than expected this year. Strong earnings from General Electric Co. and Citigroup Inc. were overlooked, but analysts said earnings would nonetheless be a key factor in overcoming the recent slump.
''Earnings are really the only hope for this market,'' said Brian Pears, head equity trader at Victory Capital Management in Cleveland. ''If, on the whole, earnings can go up, then we might be able to overcome oil and inflation and all the other things.''
The Dow fell 191.24, or 1.86 percent, to 10,087.51, after falling 125 points Thursday and 104 points Wednesday. It was the Dow's lowest close since Nov. 2.
Broader stock indicators also lost considerable ground. The Nasdaq composite index dropped 38.56, or 1.98 percent, to 1,908.15 for its worst showing since Oct. 25.
The Standard & Poor's 500 index was down 19.43, or 1.67 percent, at 1,142.62, its lowest level since Nov. 3.
All three indexes set five-month lows for the second straight session, prompted by disappointing earnings in the tech sector and questions about slowing economic growth. With Friday's losses, it was the first time the Dow lost 100 points three sessions in a row since late January 2003.
For the week, the Dow lost 3.57 percent, the S&P 500 was down 3.27 percent, and the Nasdaq tumbled 4.56 percent. The major indexes are also at their lowest points of 2005, with the Nasdaq down 12.29 percent, the Dow falling 6.45 percent and the S&P having lost 5.72 percent.
Bond investors were pleased with Friday's results, however, as the bond market continued to rally. The yield on the 10-year Treasury note fell to 4.24 percent from 4.34 percent late Thursday. The dollar was mixed against other major currencies, while gold prices moved higher.
Crude oil prices were lower and continued a two-week downtrend, with a barrel of light crude settling at $50.49, down 64 cents, on the New York Mercantile Exchange.
The recent drop in crude futures notwithstanding, higher oil prices are to blame for the jump in import prices, the Labor Department said. Import costs rose 1.8 percent in March, but even without oil, prices rose 0.3 percent, more than the 0.2 percent rise economists had expected.
''There's a lot of evidence that when we have oil averaging $53 or $54 per barrel, that's inflationary, and we got a whiff of that today in the import prices,'' said Peter Cardillo, chief strategist and senior vice president with S.W. Bach & Co. ''It doesn't help that we're starting to see the economy enter a slowing mode heading into the second quarter here.''
Investors looking at the Fed's industrial output report also questioned whether higher energy and materials costs were affecting manufacturing growth as well. Overall industrial production rose 0.3 percent in March, up from 0.2 percent in February, but the increase came only from utility production due to a colder-than-average month, and manufacturing and other industrial sectors showed losses for the first time in six months.
IBM said an inability to close deals before the end of the quarter, combined with higher pension costs, dragged on its earnings. The technology company, which missed Wall Street forecasts by 6 cents per share, hinted at a major restructuring this year. IBM tumbled $6.94, or 8.3 percent to $76.60, and was the biggest loser on the Dow.
General Electric rose 25 cents to $35.75 after the industrial and media conglomerate reported a 25 percent jump in first-quarter profits, with nine of the company's 11 disparate divisions reporting double-digit growth. The company's forecasts for the second quarter and full year were in line with Wall Street's estimates.
Citigroup beat Wall Street's expectations for its quarterly profits by 2 cents per share, with profits rising a modest 3 percent year-over-year. The financial company also said its board had authorized the repurchase of an additional $15 billion in stock. Citigroup added 35 cents to $45.75.
The lagging pharmaceutical sector saw new life after Genentech Inc. reported strong results from trials of its Avastin drug in breast cancer patients, and Ely Lilly & Co. received a favorable patent ruling on its best-selling anti-psychotic drug Zyprexa. Genentech surged $10.72, or 18.3 percent, to $69.35, while Lilly climbed $2.91 to $58.07.
Declining issues outnumbered advancers by more than 4 to 1 on the New York Stock Exchange, where consolidated volume came to 2.75 billion shares, compared with 2.38 billion on Thursday.
The Russell 2000 index of smaller companies was down 11.16, or 1.89 percent, at 580.78. The Russell lost 4.91 percent this week and is down 10.86 percent for the year.
Thursday's losses in U.S. markets had a ripple effect overseas, as the Nikkei stock average fell 1.66 percent. In Europe, Britain's FTSE 100 closed down 1.09 percent, France's CAC-40 lost 1.92 percent for the session, and Germany's DAX index tumbled 2.04 percent.
SEE POLL BELOW
How do you feel about the nation's economy?
I'm very worried 51%
I'm somewhat concerned 31%
It's strong, recent bad news aside 18%
Total Votes: 22,028
posted on April 15, 2005 10:46:49 PM new
I'm more curious about things like why in the world would Apple take a 10% hit after posting numbers which exceeded market predictions? Hell, even the analysts can't figure it out. And Southwest posts fantastic numbers putting them as one of the only airlines actually operating in the black and they drop? There seems to be very little rhyme or reason when it comes to short term stock analysis
Krafty - you were talking about something to invest in... Discount Apple stock is always good and many analysts are saying that eBay is a good buy as it is taking strange hits bringing it to half of it past high. As one put it... There's a half price special now on ebay... buy while you can!
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If it's really "common" sense, why do so few people actually have it?
posted on April 16, 2005 12:19:59 AM new
Helps me - Dollar value dropped again so I am making an additional 5-6% more per sale this week than I was making last week.
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If it's really "common" sense, why do so few people actually have it?
[ edited by fenix03 on Apr 16, 2005 12:20 AM ]
posted on April 16, 2005 03:32:23 AM new
The percentage of people of voted according to
politcal party
democrats----82%
republicans--18%
How do you feel about the nation's economy?
I'm very worried 51%
I'm somewhat concerned 31%
It's strong, recent bad news aside 18%
Total Votes: 22,028
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Baseball season has started,but they have it all wrong.3 strikes and you're out,4 balls you walk.I can tell you right now a man with 4 balls could not possibly walk
posted on April 16, 2005 04:43:22 AM new
washingtonebayer my posts are for people that are not as informed as you seem to be. From the article below it seems Bush and other international countries are also worried about the U.S. economy.
You asked if I am saying Bush is to blame for the stock market? I just posted an article, its up to the American people to place blame once they are informed.
World Officials to Confront Economic Woes
Saturday, April 16, 2005 5:13 AM EDT
The Associated Press
By MARTIN CRUTSINGER
The Bush administration, already concerned about the impact soaring oil prices will have on the economy, now has to be worried as well about a plunging stock market.
Oil and jittery financial markets were certain to be top discussion topics on Saturday as Treasury Secretary John Snow and Federal Reserve Chairman Alan Greenspan serve as hosts for a meeting of finance officials from the world's seven richest industrial countries.
On Friday, Wall Street suffered its worst single day loss in nearly two years with the Dow Jones industrial average plunging 191.24 points, its third straight triple-digit decline _ something that hasn't happened since January 2003.
The sell-off was blamed on increasing worries that the U.S. economy _ the locomotive for the global economy _ could be entering a "soft patch" that could be worse than last year's spring and summer slowdown. Those also occurred after gasoline and other energy prices skyrocketed.
President Bush has been prodding Congress to pass an energy bill that would allow exploration of the Arctic National Wildlife Refuge to provide greater supplies in the United States. Other G-7 nations are expected to discuss their efforts to boost conservation.
In addition to the threat that surging oil prices posed to the global economy, the G-7 officials were also expected to talk about threats to global growth posed by America's huge trade deficit and the inability of Japan and many countries in Europe to boost domestic growth.
Another prime debating topic will be competing plans being put forward by the United States, Britain and France to reduce the debt burden held by the world's poorest countries. Officials hope to make progress in resolving differences on this issue but have said it is likely that an agreement will not be reached until early July in Scotland, where Bush and other leaders of the seven wealthy countries along with Russia will hold their annual economic summit.
The G-7 countries are the United States, Japan, Germany, France, Britain, Italy and Canada.
Their talks Saturday are in advance of weekend meetings of the 184-nation International Monetary Fund and its sister lending institution, the World Bank.
As usual, all of the talks were being held under tight security. Protesters for the spring meetings were expected to be much smaller in numbers than at previous gatherings.
A small band of protesters on Friday unveiled a huge clock in a park across the street from the World Bank in an effort to demonstrate the urgency of dealing with the debt issue. Officials from Oxfam International and other poverty relief agencies said that a child dies in a poor country every three seconds because of poverty and disease.
Top finance officials of China, who had been invited to the last two G-7 meetings, sent notice they did not plan to attend. That will not stop the G-7 countries from discussing the need for China to stop linking its currency, the yuan, to the U.S. dollar.
American manufacturers contend this practice has undervalued the yuan by as much as 40 percent, giving the Chinese a huge competitive advantage over U.S. companies and contributing to a soaring trade gap and the loss of 3 million American manufacturing jobs over the past five years.
Aides said Snow used a series of one-on-one discussions with other finance officials on Friday to press the U.S. position that China should make the switch now to a flexible currency whose value is set by market forces.
However, Chinese officials continue to insist that they need to do more to prepare their financial system for an era of floating rather than fixed currency rates.
The annual spring meetings will be the last for World Bank President James Wolfensohn, who is stepping down after 10 years. He agreed this week to take over the job of helping coordinate Israel's planned withdrawal from the Gaza Strip and reconstruction of the area as it is turned over to the Palestinians.
He will be succeeded at the World Bank by Deputy Defense Secretary Paul Wolfowitz, a leading architect of the administration's Iraq war strategy. Wolfowitz will take over as head of the world's largest supplier of development aid on June 1.
posted on April 16, 2005 05:29:48 AM new
Quit making this a party thing, bear. Some things concern both parties and the economy is one of them.
Just think how well your SS dollars would be doing right now had Bush's plan been already implemented, she said sarcastically. He was in Ohio yesterday at an "invitation only" event to promote his plan. Town Hall meetings were a disaster and didn't get the results they wanted so they switched to "invitation only". What kind of crock is that? Only invite the people you are fairly sure will agree with you?
I don't own stock and never plan to. My money would be safer under my mattress.
Cheryl
[ edited by CBlev65252 on Apr 16, 2005 05:30 AM ]
posted on April 16, 2005 06:12:05 AM new
LOL Cheryl,
Actually overall the stockmarket does make people money or it wouldn't of survived this long.
I don't look at it as "blame" for anyone thing or person. If we could forsee drops like this, just think of how much more of mess it would be.
Stockmarket is "gambling" with some safeguards. I would always take stocks over my mattress anyday.
That being said it seems like this is heading toward the proposed SS plan, which I support.
It would be great to be able to control my money and not let some government official just hold on to it.
Ron
[ edited by Washingtonebayer on Apr 16, 2005 06:15 AM ]
posted on April 16, 2005 06:48:07 AM new
we already control our own IRA and now we want to control our SS??
SS is never meant to be our only source of retirement income.
,but the sad truth is that more people rely on that monthly ss check!
what happens if we lose our ss investment??
-sig file -------
Eat grass,kick ass,never go belly up!
You will not control your money. This is what people don't understand. A GOVERNMENT appointed person/entity will decided where your money goes. You don't get to use your own broker. It still comes out of your paycheck. You don't see the money. A 401K works basically the same way. I lost money with my 401K. Would rather not lose my SS money. Again, the government will still have control of your money.
". . .the plan would be phased in slowly, starting in 2009 with an initial annual cap of $1,000 and rising by $100 a year. It would take an additional 26 years for someone at the taxable maximum to save the promised 4 percent." I would be over 78 years old.
"If 2% of workers' pay that now goes to Social Security went instead into private accounts, money for the benefits of today's retirees, widows, orphans, and disabled workers would have to come from somewhere else. Taxpayers would have to fork over an extra $1 trillion over the next 10 years.. . .Keeping track of everyone's individual investments, and paying all the brokerage and investment fees would cost far more than administering Social Security. That's money for Wall Street, not workers' retirement."
Cheryl
[ edited by CBlev65252 on Apr 16, 2005 07:07 AM ]
posted on April 16, 2005 07:39:21 AM new
::Apple a great stock???::
200% increase in value over the past year desquirrel with continued robust sales, increasing market share thanks to the introduction of the mini and the upcoming introduction of an OS update.
What would you call it? Since you seem to have opinion, don't just share it...justify it.
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If it's really "common" sense, why do so few people actually have it?
posted on April 16, 2005 09:48:32 AM new
If you don't like the product, don't buy the stock...but I've made more money on Apple than any other tech I've owned. Shares were off due to lowered expectations, Apple only sold 5.3 million iPods in the last quarter, when analysts had predicted 6 ..This is the kind of goofiness that makes investing in the market such a gamble. The share price no longer has much to do with a company's health and profitability...reminds me of a permanently spooked horse I used to own...big wild eyes and laid back ears just waiting for the slightest breeze to make her bolt for the barn. Except for Apple, I'm basically done with the stock market. Land hereabouts has tripled in value in 2 year's time. Why would I want to put money into a barn full of spooked horses?
The market used to make some kind of sense. Not any more.
____________________________________________
Dick Cheney: "I have not suggested there's a connection between Iraq and 9/11..."
posted on April 16, 2005 09:50:24 AM new
meant to add:
peepa, have you ever thought of researching valid, mathematically based polls, instead of those silly online things you're always quoting?
____________________________________________
Dick Cheney: "I have not suggested there's a connection between Iraq and 9/11..."
posted on April 16, 2005 10:27:21 AM new
WASHINGTONEBAYER, I am glad you are so happy with the U.S. economy. I realize some Americans are doing better than ever. I am sure a lot of Americans don't share your enthusiasm about the economy.
I guess we all just need to go out and shop more to help the economy. The problem with that is a lot of Americans are spent out.
I hear from some republicans that if we are not doing so well its our own fault. They say many Americans have made very poor choices with their personal finances. I guess choices like going to work for a company that outsourced our job or other companies like Tyco and Enron were all bad choices. Yes, it looks like many of us were very short sighted and made bad choices because we didn't see the high energy and gas cost along with high health care and drug cost that has come along in the last 4 years. Its also our own fault that we created the record trade deficit.
I guess a lot of us made another bad choice about our personal finance, when we voted because of personal beliefs for leaders that cater to the rich and industry. Simply put Americans are getting what they voted for.
posted on April 16, 2005 10:53:35 AM new
profe51, I also post valid, mathematically based polls and studies. Just a few days ago I posted a study that showed for the first time in 14 years the American workers pay is falling behind cost and inflation.
Frankly if you are not worried about this economy I don't understand your thinking.
The AOL poll I posted just said the majority of Americans that voted are worried about the economy nothing more or nothing less. If you want to call that AOL poll "silly" fine with me.
posted on April 16, 2005 02:57:54 PM new
Just because somebody asks you a question doesn't mean they disagree with you. Do you always take everything so personal?
I never said I was happy with the economy, nor did I disagree with your opinions. I asked you a question, that's all. A lot of the polls you copy and paste are online polls, which anyone with a lick of sense knows are the easiest thing in the world to skew. You can vote as many times as you want on most of them. I certainly don't have time to go look at all the polls you post, so if you've posted some valid ones, I stand corrected.
____________________________________________
Dick Cheney: "I have not suggested there's a connection between Iraq and 9/11..."
posted on April 16, 2005 03:10:39 PM newThe AOL poll I posted just said the majority of Americans that voted are worried about the economy nothing more or nothing less. If you want to call that AOL poll "silly" fine with me.
I'm mighty glad that's fine with you, peepa. Media polls, like the AOL member polls, where you get to click as many times and vote as many times as you want to, ARE SILLY. They're meaningless and ridiculously easy to dispute. Anyone trying to prove a point with one is a fool.
If you're really interested in making your point, why don't you start at pollingreport.com, which lists all the current, well respected polls taken by legitimate organizations around the country. There, you'd be able to see and prove that consumer confidence is off 18 points, it's lowest since June of 04, for example.
Maybe AO-Hell won't let you go there or something, I don't know. It is, after all, America's favorite way to hide from the internet. As soon as your 10 million "free" hours are used up, you ought to consider getting a real ISP....
____________________________________________
Dick Cheney: "I have not suggested there's a connection between Iraq and 9/11..."
posted on April 16, 2005 03:40:39 PM new
classicrock000<--thinks bigpeepa hangs out in the Mpov(male point of veiw) chat room
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Baseball season has started,but they have it all wrong.3 strikes and you're out,4 balls you walk.I can tell you right now a man with 4 balls could not possibly walk
posted on April 16, 2005 03:51:41 PM new
PROFE51,Lets make a deal you posts your posts and I will post mine. You take care of your business and I will take care of mine. Nothing more or nothing less.
I am in your words such a "FOOL" that I use both AOL and Adelphia. Maybe neither one meets your standards. If you don't like AOL or Adelphia tell it to someone who cares not me.
The facts are the stock market took a beating this week and a lot of people are worried about the U.S. economy for the long run. That my friend was my point. Its not if I am a "fool" or not. Nor was my post about if you like AOL or its polls.
posted on April 16, 2005 10:22:57 PM new
Seems to me like you take any response to your posts that is less than 100% supportive as a personal affront.
PROFE51,Lets make a deal you posts your posts and I will post mine. You take care of your business and I will take care of mine. Nothing more or nothing less.
I guess by this you mean you'd rather nobody responded to your posts at all...imagine what this board would be like if we all did that....bunch of one person threads...now wouldn't that be fun!
No deal amigo. Post your posts, and as I see fit, I'll respond to them. You're more than welcome to respond to any I might happen to post, although I don't have time to start many threads. If you don't want to read my opinions, you can put me on ignore, or go find a board someplace where people don't respond to each other.
I don't disagree with most of your opinions, peepa. It's just that your supporting polls and links are for the most part really lame and I'd love to see you do a better job of making your point....I guess maybe that's what really gets your goat.
____________________________________________
Dick Cheney: "I have not suggested there's a connection between Iraq and 9/11..."
posted on April 17, 2005 03:28:14 AM new
BAA-BAA-BAA
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Baseball season has started,but they have it all wrong.3 strikes and you're out,4 balls you walk.I can tell you right now a man with 4 balls could not possibly walk
posted on April 17, 2005 06:13:17 AM new
bigpeepa, where did I say I was "so happy" with the economy.
I think it could be better, however I am not one to dwell on problems but look for solutions. You seem to blame everything on the election. That is not understandable at all.
This could of happend no matter who was in the White House, stockmarket will rebound; it always does.
Yes I am doing better, but I don't believe it has anything to do with other than my hard work and perserverence. It is too bad that some people think that everything needs to be handed to them.
Ron
posted on April 17, 2005 08:50:58 AM new
Washington - you have to understand Peepa. Everything goes to the extreme. If you don't adamantly oppose something you are of course in favor of it. If you don't find the "White House" at fault for all that is wrong with the world thaen you are a supporter of it.
It's unfortunate because those extreme conclusions tend to undermine his intensions.
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If it's really "common" sense, why do so few people actually have it?
posted on April 17, 2005 09:46:01 AM new "This could of happend no matter who was in the White House, stockmarket will rebound; it always does."
To suggest that the economic policy of the party in power has no influence on the economy is simply wrong. The Republican party, favoring big government, with massive defense expenditures, and the accumulating deficits and spending has a direct effect on the economy. Add to that, their focus on patronage and protection of big business and the wealthy. How can that not have an effect on the economy.
posted on April 17, 2005 10:23:44 AM new
O.K. fenix03 & Washington. You both need to understand what fenix03 calls my extremes are all about. During my 42 years in the antique business without doubt I have visited 40 to 50 thousand homes. Homes of multi millionaires down to homeys and old sick needy people. I see first hand much better then both of you what is happening to the poor, sick and needy in America. Yes, America one of the riches countries in the world. Am I extreme you can both bet your behinds I am extreme about what the poor and sick are going through in America.
I am not talking about some lazy man or woman that won't make an effort to find work. I am talking about people in true need. THERE ARE MILLIONS OF AMERICANS THAT ARE TRULY IN NEED.
The way both of you talk I can clearly see neither one of you see the suffering the truly needy Americans go through.
I am big time sick of republican lines like, people are asking for hand outs or a free ride or working the system.
Its a funny thing that almost 100% of the people that work and help the sick poor and needy don't make comments like Washington does they know better.
fenix03 doesn't make many post but wants to play word games with those that do.
I WILL SAY ONCE AGAIN. HEY AMERICA DON'T BELIEVE COMMENTS FROM PEOPLE LIKE FENIX03,WASHINGTON OR ME. GET INVOLVED,INFORMED AND MAKE UP YOUR OWN MINDS WHAT IS TRUE OR FALSE.
NOW FOR ONE MORE TIME JUST SO YOU BOTH UNDERSTAND WHY FENIX03 THINKS I AM EXTREME. I BELIEVE ITS A CRIME WHAT THIS WHITE HOUSE IS DOING TO THE MIDDLE CLASS AND TRULY NEEDY AMERICAN.
..This is the kind of goofiness that makes investing in the market such a gamble. The share price no longer has much to do with a company's health and profitability...reminds me of a permanently spooked horse I used to own...big wild eyes and laid back ears just waiting for the slightest breeze to make her bolt for the barn. Except for Apple, I'm basically done with the stock market. Land hereabouts has tripled in value in 2 year's time. Why would I want to put money into a barn full of spooked horses?