Stocks: The Street's Fears Deepen

[RedEarth]

Fears of an imminent U.S. recession were palpable on Wall Street on Tuesday, as investors reacted with dismay to a report indicating the first contraction in the services sector in nearly five years. Major U.S. indexes plummeted, in some cases recording the biggest one-day declines in a year.

On Tuesday, the Dow Jones industrial average finished 370.03 points, or 2.93%, lower at 12,265.13. The broader S&P 500 index lost 44.18 points, or 3.20% to trade at 1,336.64, its biggest one-day loss in a year. The tech-heavy Nasdaq composite index fell 73.28 points, or 3.08%, to 2,309.57.

The selloff started from the opening bell, with the market primed by the release of the Institute for Supply Management's non-manufacturing report an hour earlier than the scheduled time due to concerns that the data had been leaked.

The non-manufacturing composite index plunged to 44.9 in January from 53.2 in December, much worse than the paltry dip to 53.0 that had been expected. The business index dropped to 41.9 in January from a revised 54.4 reading in December, while the unemployment index fell to 43.1 from 51.8 in December.

"This is a dire reading on nonmanufacturing activity that portrays the emergence of recession-like conditions in the economy," John Ryding, U.S. chief economist at Bear Stearns & Co. wrote in an email research note on Tuesday.

http://www.businessweek.com/investor/content/feb2008/pi2008025_837275.htm?chan=top+news_top+news+index_top+story

[texastoast]

1. Tomorrow should be a real roller coaster

So what about that economic stimulus package?

Do you think the rest of the world can say "smoke and mirrors"?

[Yael]

2. Tomorrow should be even more interesting

:hi:

[ChiciB1]

3. I NEED To Run Or At Least Hide!! Does This Affect IRA's???

I'm thinking I need to pull a bunch of it out NOW if it does!!

Lost money last year, but a great deal, still this is BAD news!!

[mwb970]

8. I moved my stock money into the money market early in December.

If I hadn't, my retirement account balance would be down well over $20,000 from where it is right now! I'll come back to stocks after the market bottoms out, which it eventually will.

[Fovea]

4. 9000

its the new 13000.

[TalkingDog]

5. Nice.

Or it would be, if that weren't such a pre-9/11 mindset.



My Favorite Master Artist: Karen Parker GhostWoman Studios

[Demeter]

6. It's Not Fear, It's Facing Reality

The fear comes next week!

[comfycouch]

7. Recession will be long

According to an article I read today in the USA Today, I believe it was.

[Joe Bacon]

9. Hey Jim Glassman, where's that 30,000 Dow now??????

The same liar who said that if Bush got his way on privatizing Social Security, "the sky's the limit as to where the Dow will go".

Aren't YOU glad your Social Security isn't invested in the Stock Market?