Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Why the Dow Fell 225 Points

Stock-Markets / Stock Markets 2013 Aug 16, 2013 - 03:39 PM GMT

By: Money_Morning

Stock-Markets

Diane Alter writes: The stock market today killed the idea of "turnaround Thursdays"...

The Dow fell 225.39 points Thursday, one day after the benchmark fell 113 points, its first triple-digit decline since June 28. With Thursday's drop, the Dow hit its first back-to-back triple-digit decline since June 19-20, when it plummeted nearly 560 points over the two days.


June's rout was spurred by comments from the Federal Open Market Committee (FOMC) following its June meeting. At the time, the central bank said it would taper QE this year should the economy and job market continue to improve.

The current swoon, however, stems from way more than the Fed...

Why Did the Dow Fall Today? 5 Reasons

Taking the blame for Thursday's slide...

  • Before the opening bell, Wal-Mart Stores Inc. (NYSE: WMT) reported earnings and same store sales that missed expectations. The company posted a Q2 profit of $4.07 billion, or $1.24 a share, compared with $4.02 billion, or $1.18 a share a year earlier. Revenue came in at $116.9 billion. Expectations had been for EPS of $1.25 on revenue of $118.09 billion. The world's largest retailer also lowered its earnings and sales projections for the rest of 2013. Shares slumped almost 3% on the gloomy guidance. "The Wal-Mart earnings report is as big a macro indicator as (GDP)," Nicholas Colas, chief market strategist at ConvergEx Group, told Reuters. "It shows that (consumer spending) isn't that strong yet-inflation is rising, wages are not, unemployment is still pretty high and that's not a recipe for a strong retail environment."
  • Meanwhile, after the closing bell Wednesday, networking leader Cisco Systems Inc. (Nasdaq: CSCO) signaled it was yet again reining in spending. Despite reporting an 18% jump in fiscal fourth quarter profit, the Silicon Valley tech giant said it is cutting 4,000 jobs. CEO John Chambers blamed the decision on a dismal global economic recovery. "What we see is slow, steady improvement, but not the pace we want," Chambers said on a conference call. Investors' first chance to react to the news was Thursday, and they sent the shares down more than 7%.
  • The yield on the 10-yield Treasury note spiked as high as 2.82% Thursday, a level not seen since July 28, 2011. The upward move has many market participants focusing on the timing of the Fed's tapering and calling for a 3% yield in the very near future. Worries the Fed might start turning off its market-friendly spigot as early as September has certainly spooked equity investors.
  • Investors also reacted Thursday to an unexpectedly weak reading on manufacturing in the crucial New York region. The Empire State Manufacturing Index slipped to 8.2% in August, down from 9.5% in July. Economists were looking for a 10% rise. The drop suggests that while business conditions for New York manufacturers continued to improve over the past month, it did so at a slower pace than the month before.
  • Foreign markets also responded wildly to U.S. market woes that started Wednesday, and weighed on the stock market today. Japan's Nikkei 225 index fell 2.1% to 13,752.94, and the Chinese Hang Seng Index ticked lower by 0.01% to 22,539. The Euro Stoxx 50 slid 0.56% to 2,836, the London FTSE 100 plunged 1.3% to 6,502, and the German DAX dropped 0.76% to 8,374.

Don't sweat stock market pullbacks; keep your portfolio crankin' with these investments...

Source :http://moneymorning.com/2013/08/15/stock-market-today-5-reasons-why-the-dow-fell-225-points/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in