DOW Drops 634 points

[CAwireman]

Updated the prior thread title for today’s DOW close. Spooky.

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Here we go again?

Interestingly, one bank began charging .13 % to have cash deposited…Actually charging customers to keep money in the bank…strange days indeed.

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“Dow closes down more than 500 as economic, Europe worries continue

View Gallery Updated: August 4, 2011 3:46PM

NEW YORK — The Dow is closing with a loss of 513 points, or 4.3 percent, to 11,384. It was the worst day for the Dow since October 22, 2008.

The S&P 500 is down 60, or 4.8 percent, to 1,200. The Nasdaq is down 137, or 5.1 percent, to 2,556.

Twenty stocks fell for every one that rose on the New York Stock Exchange. Volume was very heavy at 7.5 billion shares.

The Vix, a measure of investor fear, shot up nearly 25 percent. It is up 77 percent for the quarter, which began July 1.

Oil fell 6 percent to $87 a barrel on worries demand will fall because of the slowing economy. Oil had traded over $100 as recently as June 9. The yield on the two-year Treasury note hit a record low as investors sought out relatively stable investments.

Investors are increasingly worried about economic weakness in the U.S. and a debt crisis in Europe.

“We are continuing to be bombarded by worries about the global economy,” said Bill Stone, chief investment strategist at PNC Financial.

Stock trading has been volatile this week because of concerns that the U.S. economy is weakening. Manufacturing, consumer spending and hiring by private companies are below levels that are consistent with a healthy economy. Those reports have called into question estimates from economists, including Federal Reserve Chairman Ben Bernanke, that the economy will grow more quickly in the second half of the year.

** Large investors have moved so much money into cash accounts at Bank of New York that on Thursday the bank said it would begin charging some clients a 0.13 percent fee to hold their cash. **

“In the past month, we have seen a growing level of deposits on our balance sheet from clients seeking a safe-haven in light of the global interest rate and credit environment,” the bank said in a statement to The Associated Press. Bank of New York clients include pension funds and large investment houses.

“Investors are deciding that now is the time to take risk off the table,” said Brian Gendreau, market strategist for Cetera Financial Group. Gendreau said that some investors are now wondering whether stocks will have a prolonged slump similar to the aftermath of the Great Depression.

Technical trading, a term used to signify buying or selling based on the S&P 500’s prior highs and lows, helped push stocks downward. The S&P 500 fell below 1,222, a so-called support level, early in the day. That signified to some traders that the stock market would continue to slide.

“Traders are respecting the technical levels even if they’re not technicians,” said Quincy Krosby, market strategist at Prudential Financial. “Even if you’re what we call a conviction buyer, you have to respect those levels.”

European stocks fell broadly because of concerns that Italy or Spain may need help from the European Union. The benchmark stock indexes in Italy, Germany and England each fell 3 percent.

Some traders are selling ahead of Friday’s employment report, which is expected to show that unemployment remained at 9.2 percent last month. A rise in the unemployment number would likely push stocks lower again.

The U.S. government said before the market opened that the number of people who applied for unemployment benefits for the first time was only slightly lower last week to 400,000. That’s still above the 375,000 level that economist say indicates a healthy job market. It was the latest indication of weakness in the U.S. economy.

The sell-off comes at a time when corporate profits are growing. The forward price to earnings ratio of the S&P 500 has fallen to about 12, well below its long-term average of 16. That means that investors who buy now are paying less for each dollar in profits.

The Dow rose 30 points Wednesday — after being down 166 — to break an eight-day losing streak. Nine days would have been the longest since February 1978. The S&P 500 index rose 6 points and broke a seven-day streak.”

[CA renter]

Just reposting this info regarding FDIC-insured accounts. A lot of people don’t know about the temporary unlimited coverage for noninterest-bearing accounts. I once had to send a link to someone at a major bank, when they insisted to me that no such insurance existed. For some reason, it was kept very quiet when they passed this change.

From the FDIC’s website:

Temporary Unlimited Coverage for Noninterest-bearing Transaction Accounts

From December 31, 2010 through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of the account and the ownership capacity of the funds. This coverage is available to all depositors, including consumers, businesses, and government entities. The unlimited coverage is separate from, and in addition to, the insurance coverage provided for a depositor’s other accounts held at an FDIC-insured bank.

A noninterest-bearing transaction account is a deposit account where:

interest is neither accrued nor paid;
depositors are permitted to make an unlimited number of transfers and withdrawals; and
the bank does not reserve the right to require advance notice of an intended withdrawal.
Note: Money Market Deposit Accounts (MMDAs) and Negotiable Order of Withdrawal (NOW) accounts are not eligible for this temporary unlimited insurance coverage, regardless of the interest rate, even if no interest is paid.

For more information see FDIC Frequently Asked Questions on the Dodd-Frank Act at http://www.fdic.gov/deposit/deposits

The discussion and examples of deposit insurance coverage in this brochure assume deposits are held in interest-bearing accounts.

http://www.fdic.gov/deposit/deposits/insured/temporary.html

[CA renter]

Just reposting this info regarding FDIC-insured accounts. A lot of people don’t know about the temporary unlimited coverage for noninterest-bearing accounts. I once had to send a link to someone at a major bank, when they insisted to me that no such insurance existed. For some reason, it was kept very quiet when they passed this change.

From the FDIC’s website:

Temporary Unlimited Coverage for Noninterest-bearing Transaction Accounts

From December 31, 2010 through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of the account and the ownership capacity of the funds. This coverage is available to all depositors, including consumers, businesses, and government entities. The unlimited coverage is separate from, and in addition to, the insurance coverage provided for a depositor’s other accounts held at an FDIC-insured bank.

A noninterest-bearing transaction account is a deposit account where:

interest is neither accrued nor paid;
depositors are permitted to make an unlimited number of transfers and withdrawals; and
the bank does not reserve the right to require advance notice of an intended withdrawal.
Note: Money Market Deposit Accounts (MMDAs) and Negotiable Order of Withdrawal (NOW) accounts are not eligible for this temporary unlimited insurance coverage, regardless of the interest rate, even if no interest is paid.

For more information see FDIC Frequently Asked Questions on the Dodd-Frank Act at http://www.fdic.gov/deposit/deposits

The discussion and examples of deposit insurance coverage in this brochure assume deposits are held in interest-bearing accounts.

http://www.fdic.gov/deposit/deposits/insured/temporary.html

[CA renter]

Just reposting this info regarding FDIC-insured accounts. A lot of people don’t know about the temporary unlimited coverage for noninterest-bearing accounts. I once had to send a link to someone at a major bank, when they insisted to me that no such insurance existed. For some reason, it was kept very quiet when they passed this change.

From the FDIC’s website:

Temporary Unlimited Coverage for Noninterest-bearing Transaction Accounts

From December 31, 2010 through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of the account and the ownership capacity of the funds. This coverage is available to all depositors, including consumers, businesses, and government entities. The unlimited coverage is separate from, and in addition to, the insurance coverage provided for a depositor’s other accounts held at an FDIC-insured bank.

A noninterest-bearing transaction account is a deposit account where:

interest is neither accrued nor paid;
depositors are permitted to make an unlimited number of transfers and withdrawals; and
the bank does not reserve the right to require advance notice of an intended withdrawal.
Note: Money Market Deposit Accounts (MMDAs) and Negotiable Order of Withdrawal (NOW) accounts are not eligible for this temporary unlimited insurance coverage, regardless of the interest rate, even if no interest is paid.

For more information see FDIC Frequently Asked Questions on the Dodd-Frank Act at http://www.fdic.gov/deposit/deposits

The discussion and examples of deposit insurance coverage in this brochure assume deposits are held in interest-bearing accounts.

http://www.fdic.gov/deposit/deposits/insured/temporary.html

[CA renter]

Just reposting this info regarding FDIC-insured accounts. A lot of people don’t know about the temporary unlimited coverage for noninterest-bearing accounts. I once had to send a link to someone at a major bank, when they insisted to me that no such insurance existed. For some reason, it was kept very quiet when they passed this change.

From the FDIC’s website:

Temporary Unlimited Coverage for Noninterest-bearing Transaction Accounts

From December 31, 2010 through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of the account and the ownership capacity of the funds. This coverage is available to all depositors, including consumers, businesses, and government entities. The unlimited coverage is separate from, and in addition to, the insurance coverage provided for a depositor’s other accounts held at an FDIC-insured bank.

A noninterest-bearing transaction account is a deposit account where:

interest is neither accrued nor paid;
depositors are permitted to make an unlimited number of transfers and withdrawals; and
the bank does not reserve the right to require advance notice of an intended withdrawal.
Note: Money Market Deposit Accounts (MMDAs) and Negotiable Order of Withdrawal (NOW) accounts are not eligible for this temporary unlimited insurance coverage, regardless of the interest rate, even if no interest is paid.

For more information see FDIC Frequently Asked Questions on the Dodd-Frank Act at http://www.fdic.gov/deposit/deposits

The discussion and examples of deposit insurance coverage in this brochure assume deposits are held in interest-bearing accounts.

http://www.fdic.gov/deposit/deposits/insured/temporary.html

[CA renter]

Just reposting this info regarding FDIC-insured accounts. A lot of people don’t know about the temporary unlimited coverage for noninterest-bearing accounts. I once had to send a link to someone at a major bank, when they insisted to me that no such insurance existed. For some reason, it was kept very quiet when they passed this change.

From the FDIC’s website:

Temporary Unlimited Coverage for Noninterest-bearing Transaction Accounts

From December 31, 2010 through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of the account and the ownership capacity of the funds. This coverage is available to all depositors, including consumers, businesses, and government entities. The unlimited coverage is separate from, and in addition to, the insurance coverage provided for a depositor’s other accounts held at an FDIC-insured bank.

A noninterest-bearing transaction account is a deposit account where:

interest is neither accrued nor paid;
depositors are permitted to make an unlimited number of transfers and withdrawals; and
the bank does not reserve the right to require advance notice of an intended withdrawal.
Note: Money Market Deposit Accounts (MMDAs) and Negotiable Order of Withdrawal (NOW) accounts are not eligible for this temporary unlimited insurance coverage, regardless of the interest rate, even if no interest is paid.

For more information see FDIC Frequently Asked Questions on the Dodd-Frank Act at http://www.fdic.gov/deposit/deposits

The discussion and examples of deposit insurance coverage in this brochure assume deposits are held in interest-bearing accounts.

http://www.fdic.gov/deposit/deposits/insured/temporary.html

[DomoArigato]

Oof! The market started off OK, but it looks like it’s going to get kicked in the proverbial nuts again today.

[DomoArigato]

Oof! The market started off OK, but it looks like it’s going to get kicked in the proverbial nuts again today.

[DomoArigato]

Oof! The market started off OK, but it looks like it’s going to get kicked in the proverbial nuts again today.

[DomoArigato]

Oof! The market started off OK, but it looks like it’s going to get kicked in the proverbial nuts again today.

[DomoArigato]

Oof! The market started off OK, but it looks like it’s going to get kicked in the proverbial nuts again today.

[Arraya]

Hmm, a critical support level was breached with the S&P

[Arraya]

Hmm, a critical support level was breached with the S&P

[Arraya]

Hmm, a critical support level was breached with the S&P

[Arraya]

Hmm, a critical support level was breached with the S&P

[Author]

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