Dow tumbles nearly 500 points to enter correction territory as stocks fall on global growth fears

[mahatmakanejeeves]

Source: MarketWatch

Dow tumbles nearly 500 points to enter correction territory as stocks fall on global growth fears

Published: Dec 14, 2018 4:45 p.m. ET

By CHRIS MATTHEWS
MARKETS REPORTER

BARBARA KOLLMEYER
MARKETS REPORTER

Stocks fell sharply Friday, ending the week on a bleak note and sending the Dow Jones Industrial Average into correction territory after a batch of weaker-than-expected economic data out of China and Europe sparked fresh worries about the state of the world’s second-biggest economy and prospects for global growth.

How did benchmarks trade?

The Dow DJIA, -2.02% fell 496.87 points, or 2%, to end at 24,100.51, for its lowest close since May 3. The S&P 500 index SPX, -1.91% shed 50.59 points, or 1.9%, to close at 2,599.95, its lowest finish since April 2. The Nasdaq Composite Index COMP, -2.26% dropped 58.59 points, or 0.8%, to finish at 6,910.66, marking its lowest close since Nov. 20.

The drop left the Dow more than 10% below its Oct. 3 record high, meeting the widely used definition of a correction. The blue-chip gauge joined the S&P 500 and the Nasdaq in correction territory.
....

What’s driving the market?

Fresh evidence that global trade tensions are hitting the world’s second-biggest economy emerged Friday, as China released data that showed both industrial output and retail sales for November missed economists’ forecasts. China’s National Bureau of Statistics attempted to cool concerns, saying the economy “performed within the reasonable range.”
....

Read more: https://www.marketwatch.com/story/us-stock-futures-under-pressure-after-weak-china-data-2018-12-14

---

Hat tip, Joe.My.God:

TARIFF MAN: Stock Market Plunges Another 500 Points

https://www.joemygod.com/2018/12/tariff-man-stock-market-plunges-another-500-points/

* * * * *

I'm not gloating, because I contribute on a regular basis to my 401(k). Also, I bought some stock last Friday. I'm going along on this ride too.

[sandensea]

1. The Trump slump.

I'm surprised Cheeto hasn't started blaming this on Pelosi already.

"The market knows Nancy's nothing but trouble - believe me!"

[mahatmakanejeeves]

2. Personally, I thank the Donald for lowering my capital gains taxes. NT

[sandensea]

4. Alright!

I'd rather it be you than one of these John Birch/Jim Crow types.

[mahatmakanejeeves]

5. We mustn't be so negative all the time.

I'll have to hang around some hipster coffee joints to see if I can overhear some Democrat stock tips.

On the other hand, this:

Dow Drops 400 Points Because the Market’s Worst Fear Could Be Coming True

By Ben Levisohn
Dec. 14, 2018 12:14 p.m. ET

[sandensea]

7. Absolutely.

I was trying to congratulate and compliment you, while throwing a little shade at our Republican friends at the same time.

[mahatmakanejeeves]

8. No problem. All you can do is say, "this too shall pass."

That, and vote. And contribute.

I predict that stocks will NOT drop tomorrow.

Have a great weekend.

[sandensea]

10. Hear, hear.

Have a nice weekend as well.

[Iliyah]

3. It's a matter of time . . . .

[sandensea]

6. Yeah. I guess he's got to refuel first.

Twittering is hard work.

[herding cats]

9. A recession is coming.

We all know that, but the markets are just now accepting the fact. There's also an added layer of uncertainty globally due to the US having Trump at the helm during this event.

Strap in folks. It's going to be a bumpy ride.

[TomCADem]

11. Are We In A Market Correction? 26828 Was the High

I also seem to recall Trump pointing to the stock market as evidence of his success.

[progree]

13. Yup, if 26828 was the high, then the Dow is down 10.16%. S&P 500 down 11.26%

DOW: 26828 -> 24102 => -10.16%
S&P 500: 2930 -> 2600 => -11.26%

Corrections begin at 10% below the all time peak.

S&P 500
2930 All time high (early October)
2674 Beginning of year
2600 Today's close
2344 Bear market territory begins (20% below the all time high)
2264 Last close before Inauguration Day

I don't watch the Dow very closely because it is a price-weighted very selected handful of blue chip stocks. Whereas the S&P 500 is 75-80% of the U.S. stock market by capitalization, and capitalization weighted, so is much more likely to reflect what the average investor or randomly selected investor is experiencing.

[Bengus81]

16. And...that high was for about five minutes a few months back....

The DOW hit 26,616 back in Jan and has never seen the light of day of that high for any sustained time in almost a year.

[progree]

17. Agreed - all market extremes, either peaks or bottoms, are for moments in time. Very few investors

buy at the very peak, or at the very bottom like March 9, 2009, so such extrema are relevant to hardly anyone's situation. And even for those who just happened to buy or sell at the extremes, it was almost always a very tiny minute percent of their total net worth involved in that particular buy or sale.

[duforsure]

12. Dump trump

And stop the slump.

[progree]

14. "I contribute on a regular basis to my 401(k). Also, I bought some stock last Friday"

From The Independent Adviser for Vanguard Investors Hotline, 12/13/18

Shoppers love buying items on sale. Heck, that's what drives the whole hoopla around Black Friday and Cyber Monday—retailers offer up deals and shoppers turn out in droves!

Amazingly, though, investors don't seem to like deals when it involves the stock market. Stocks are one of the few items that people would rather buy when they are priced high than when they are priced low. While you are out hunting for sales and a good deal for holiday gifts, don't forget that there are bargains to be found in the stock market right now.

[NBachers]

15. I put my 401K into a low-risk guaranteed portfolio fund this week. It doesn't pay anything, but it

Last edited Sat Dec 15, 2018, 01:22 AM - Edit history (1)

safeguards my principle. Basically a shoebox.

My account was rising steadily 'till late September; since then it's lost a few thousand dollars in value. I saw the devastation to peoples' accounts from the Bush calamity, and didn't want that to happen to me. If I stanch the bleeding now, and just increase from my weekly deposits, I'll be happy. If things change, I'll go back to my old funds. But, for now, I don't have to worry about falling off a cliff. Safe and stable is fine for these perilous times.

[workinclasszero]

18. The Trump slump is well on the way

I wonder if it will be as severe as the Bush recession/depression?

Shrub Jr didn't have tariff walls up all over the country so it may be worse.

Batten down the hatches folks, Trump's AmeriKKKa is in for a hell of a down slope run!

[Yo_Mama_Been_Loggin]

19. And the Trump slump continues

[Buckeye_Democrat]

20. Tee hee! I haven't heard the Trumptard janitor at my job...

... boast about the stock market lately. Wonder why?

After quietly listening to his nonsense, I decided to be completely over-the-top with my FAKE adoration of Trump to that idiot. I even add a Southern twang to my voice when I do it (imitating him). He thinks that I'm serious, despite how I don't enunciate words in that manner otherwise.

Edit: He's too much of a simpleton for me to explain the necessity for redistribution of wealth in our capitalistic system, so I might as well have fun with him. I secretly envy the EASY conservative arguments that people with so-called "common sense" can understand with their 10-second attention spans.