DOW dips 256 to close at 12,800

[CAwireman]

Stocks Sink on Jobs Data; Tech Plummets
01/04/08 18:12 EST
AP Photo GFX432

By TIM PARADIS

AP Business Writer

NEW Y you wanted to feel about the economy averting a recession, there is far less conviction than even two or three days ago,” said Joe Balestrino, senior portfolio manager at Federated Investors.

The technology-focused Nasdaq fell for the sixth straight session and showed its steepest percentage decline since a market pullback on Feb. 27 last year. The Nasdaq declined 98.03, or 3.77 percent, to 2,504.65, in part after the downgrade of Intel, but also because its smaller-capitalization components are seen as more vulnerable in an economic slowdown.

For 2008, the Nasdaq is down 5.57; in all of 2007, the index rose 9.81 percent.

The Dow fell 256.54, or 1.96 percent, to 12,800.18, while the Standard & Poor’s 500 index declined 35.53, or 2.46 percent, to 1,411.63.

It was the steepest point drop for the Dow and the S&P 500 since Dec. 11. In 2008, the Dow is off 3.5 percent and the S&P is down 3.86 percent.

The Russell 2000 index of smaller companies fell 23.41, or 3.14 percent, to 721.60 and hit a fresh 52-week low.

Declining issues outnumbered advancers by more than 3 to 1 on the New York Stock Exchange, where consolidated volume came to 4.05 billion shares, compared with 3.30 billion traded Thursday.

Bond prices rose as investors sought the safety of government-backed debt after the employment reading. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.87 percent from 3.89 percent late Thursday.

A Federal Reserve announcement Friday that it is ramping up the amount of cash available to banks through a new auction process did little to calm the markets. After two auctions of $20 billion each, the Fed has now scheduled auctions Jan. 14 and Jan. 28 at $30 billion each.

The dollar was mixed against other major currencies. Gold prices, which have risen to nearly 30-year highs in recent days, declined.

Light, sweet crude fell $1.27 to settle at $97.91 a barrel on the New York Mercantile Exchange. Oil touched $100 per barrel this week for the first time, stirring concerns about inflation.

The employment figures overshadowed a report from the Institute for Supply Management, a business group, which said its December index of non-manufacturing activity showed the nation’s service sector grew in December. However, the pace was slightly slower than in November and the index fell to 53.9 in December from 54.1 the prior month. Analysts had expected a deeper decline.

It’s been a difficult start to 2008 on Wall Street. After selling off in the final session of last year on Monday, investors spent the first three sessions of the new year absorbing a weaker-than-expected reading on the manufacturing sector, oil that reached $100 a barrel and Friday’s dismal employment numbers.

“It’s hard to point to any piece of data in recent weeks that makes you feel comfortable,” said Balestrino, noting that many bullish investors had hoped a strong jobs picture would lift Wall Street’s mood.

“This the one piece that was holding up pretty well and now it’s showing some weakness as well,” he said. “In our business it’s not the absolute number, it’s the direction of the number and especially the direction versus the expectations.”

In corporate news, a JPMorgan analyst lowered his rating on Intel to “neutral” from “overweight,” citing a drop in chip orders from computer manufacturers during the fourth quarter and high inventories. Intel, one of the 30 stocks that comprise the Dow industrials, fell $2, or 8.1 percent, to $22.67.

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Pretty consistent in its downward trend as of late.

[Coronita]

I'm waiting for folks like stockstradr post about how smart they are and how much they made today, yet still complain about housing affordability 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I'm waiting for folks like stockstradr post about how smart they are and how much they made today, yet still complain about housing affordability 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I'm waiting for folks like stockstradr post about how smart they are and how much they made today, yet still complain about housing affordability 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I'm waiting for folks like stockstradr post about how smart they are and how much they made today, yet still complain about housing affordability 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I'm waiting for folks like stockstradr post about how smart they are and how much they made today, yet still complain about housing affordability 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[bubba99]

We have seen these types of declines before, and the next week the market jumps back up. As the FED announces a 1/2% cut in the discount rate next week, we will probably see another 200 plus day.

If you believe the un-employment numbers (i dont) then things are not that bad. Five percent un-employment is great, and 6 or 7 percent is still O.K. If you believe the inflation numbers (i dont) we are still under 3% and in great territory. With the talking heads saying that manufacturing is not as important any more because we import a lot of finished goods, many will still believe that things are fine. Remember that with real inflation at about 10%, and official inflation at 3%, you need negative 7% growth to become an official recession – negative growth in GDP

If you believe that we are not in a recession now (i don’t) then what will it take to convice most Americans that we are actually in one. I think that they will be able to keep the markets bubbled for some time to come.

[bubba99]

We have seen these types of declines before, and the next week the market jumps back up. As the FED announces a 1/2% cut in the discount rate next week, we will probably see another 200 plus day.

If you believe the un-employment numbers (i dont) then things are not that bad. Five percent un-employment is great, and 6 or 7 percent is still O.K. If you believe the inflation numbers (i dont) we are still under 3% and in great territory. With the talking heads saying that manufacturing is not as important any more because we import a lot of finished goods, many will still believe that things are fine. Remember that with real inflation at about 10%, and official inflation at 3%, you need negative 7% growth to become an official recession – negative growth in GDP

If you believe that we are not in a recession now (i don’t) then what will it take to convice most Americans that we are actually in one. I think that they will be able to keep the markets bubbled for some time to come.

[bubba99]

We have seen these types of declines before, and the next week the market jumps back up. As the FED announces a 1/2% cut in the discount rate next week, we will probably see another 200 plus day.

If you believe the un-employment numbers (i dont) then things are not that bad. Five percent un-employment is great, and 6 or 7 percent is still O.K. If you believe the inflation numbers (i dont) we are still under 3% and in great territory. With the talking heads saying that manufacturing is not as important any more because we import a lot of finished goods, many will still believe that things are fine. Remember that with real inflation at about 10%, and official inflation at 3%, you need negative 7% growth to become an official recession – negative growth in GDP

If you believe that we are not in a recession now (i don’t) then what will it take to convice most Americans that we are actually in one. I think that they will be able to keep the markets bubbled for some time to come.

[bubba99]

We have seen these types of declines before, and the next week the market jumps back up. As the FED announces a 1/2% cut in the discount rate next week, we will probably see another 200 plus day.

If you believe the un-employment numbers (i dont) then things are not that bad. Five percent un-employment is great, and 6 or 7 percent is still O.K. If you believe the inflation numbers (i dont) we are still under 3% and in great territory. With the talking heads saying that manufacturing is not as important any more because we import a lot of finished goods, many will still believe that things are fine. Remember that with real inflation at about 10%, and official inflation at 3%, you need negative 7% growth to become an official recession – negative growth in GDP

If you believe that we are not in a recession now (i don’t) then what will it take to convice most Americans that we are actually in one. I think that they will be able to keep the markets bubbled for some time to come.

[bubba99]

We have seen these types of declines before, and the next week the market jumps back up. As the FED announces a 1/2% cut in the discount rate next week, we will probably see another 200 plus day.

If you believe the un-employment numbers (i dont) then things are not that bad. Five percent un-employment is great, and 6 or 7 percent is still O.K. If you believe the inflation numbers (i dont) we are still under 3% and in great territory. With the talking heads saying that manufacturing is not as important any more because we import a lot of finished goods, many will still believe that things are fine. Remember that with real inflation at about 10%, and official inflation at 3%, you need negative 7% growth to become an official recession – negative growth in GDP

If you believe that we are not in a recession now (i don’t) then what will it take to convice most Americans that we are actually in one. I think that they will be able to keep the markets bubbled for some time to come.

[HereWeGo]

Next week will be an interesting test of negative sentiment = bottom, because I’ve never seen sentiment as negative as it was on CNBC today. Cramer, the Fast Money crew, Kudlow and Co, almost all analysts … everyone was in “end of the world” mode.

[HereWeGo]

Next week will be an interesting test of negative sentiment = bottom, because I’ve never seen sentiment as negative as it was on CNBC today. Cramer, the Fast Money crew, Kudlow and Co, almost all analysts … everyone was in “end of the world” mode.

[HereWeGo]

Next week will be an interesting test of negative sentiment = bottom, because I’ve never seen sentiment as negative as it was on CNBC today. Cramer, the Fast Money crew, Kudlow and Co, almost all analysts … everyone was in “end of the world” mode.

[HereWeGo]

Next week will be an interesting test of negative sentiment = bottom, because I’ve never seen sentiment as negative as it was on CNBC today. Cramer, the Fast Money crew, Kudlow and Co, almost all analysts … everyone was in “end of the world” mode.

[Author]

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