Um, the ‘stupidity index’ dropped sharply this morning in early trading but gained roughly half of those losses back by the close of trading…again, for no discernable reason.
Let’s see what the pundit have cobbled together for an explanation…so we proceed to tonight’s offering
Stocks Fall Sharply in Early Wall Street Trading
By THE ASSOCIATED PRESS
Published: November 19, 2009
Stocks fell sharply Thursday in early trading on Wall Street, following the lead of overseas markets and as the dollar strengthened against European currencies. [Again, the only market known to have finished in positive territory today was China’s Shanghi index.]
Investors showed little deference to a new report on weekly unemployment claims that was in line with expectations. [Um, I didn’t scour the web but apparently today’s unemployment report was ‘non-news’.]
The Labor Department says the number of newly laid off workers seeking unemployment benefits for the first time was unchanged last week at 505,000, matching economists’ expectations. [There it is good citizen, nothing to see here, move along.]
Shortly after the start of trading, the Dow Jones industrial average was down 70.21, or 0.7 percent, at 10,356.10. The Standard & Poor’s 500-stock index was down 7.65, or 0.7 percent, at 1,102.15, while the Nasdaq composite index was down 19.10, or 0.9 percent, at 2,174.04. [Perhaps more surprising is nobody is pointing to the ‘default’ excuse wheeled out when the markets ‘lose altitude’ which is to say nobody has mentioned ‘profit taking’ (which is probably precisely what it is.)]
In Europe, the FTSE 100 index of leading British shares was down 33.35 points, or 0.6 percent, to 5,308.78 while Germany’s DAX fell 47.92 points, or 0.8 percent, to 5,739.69. The CAC-40 in France was 22.27 points, or 0.6 percent, lower at 3,805.89.
Stock markets have rallied strongly since March’s lows as investors reined in their economic doomsday expectations to factor in a swifter than anticipated global economic rebound, but recent disappointing United States housing figures and mixed earnings from some of the country’s leading retailers have dented some of the optimism. Many investors think stock valuations are now pricing in too rapid an economic recovery. [What a load of malarky! Swifter than anticipated, you’d have to be plenty fucking ‘swift’ to swallow a turd like that! Whew, some of the crap these guys come up with!]
“Negative outlooks from the U.S. software sector and unexpectedly disappointing home stats brought worries about the pace of recovery back to the table,” said Richard Griffiths, senior equity trader at Spreadex. [Tell me that doesn’t look like a made up name? Not that it particularly matters, after the crisis there isn’t anybody on Wall Street with a shred of credibility left.]
The state of household spending in the United States is key for recovery — it accounts for around 70 percent of the nation’s economy. “Investors will be particularly interested in the sector in the run-up to the festive season; retailers will soon be finding out whether consumers are willing to reach for their credit cards or whether post-recessionary fears will prevail,” said David Jones, chief market strategist at IG Index. [We have to find the lone deaf mute who doesn’t know that niggling little detail and TATTOO it on the inside of their fucking eyelids, the way the cokesackers in the MSM keep repeating it! Although…before they altered how they calculate that percentage, it used to be 80% of the economy! Now go ahead and tell me I’m the only one who remembers that…]
The markets brushed aside the latest more rosy economic forecasts from the Paris-based Organization for Economic Cooperation and Development, even though it more than doubled its estimate for 2010 growth in its 30 member countries — which include the United States, Japan and Germany — to 1.9 percent and raised its 2011 forecast to 2.5 percent.
“Neither of these figures is exceptional which underpins the delicate nature of the present economic recovery,” said Jane Foley, research director at Forex.com.
The euro fell against the dollar Thursday after failing to break through the $1.50 level despite more remarks from Federal Reserve officials that interest rates in the United States are likely to stay low for a long time.
The 16-nation euro bought $1.4880 in European morning trading, down from the $1.4940 in late New York trading Wednesday. Before falling lower Wednesday, the euro had jostled with the $1.50 mark.
The British pound also fell to $1.6682 from $1.6718, while the dollar fell to 89.08 Japanese yen from 89.48 yen late Wednesday in New York. [Understand good citizen when we hit ‘parity’ with the yen, we’re essentially screwed. You’ll need a wheelbarrow full of money to get a gumball! At that point in the game it becomes meaningless if it is due to there being too many dollars or if your existing dollars have simply become worthless, because the end result is the same.]
Earlier, Japan’s Nikkei 225 stock average lost 127.33 points, or 1.3 percent, to 9,549.47 — its seventh straight day of decline as investors succumbed to jitters about a possible glut of new bank shares after Mitsubishi UFJ announced plans to raise capital. The bank’s shares fell 3.7 percent.
Elsewhere, Hong Kong’s Hang Seng fell 197.17 points, or 0.9 percent, to 22,643.16, while Taiwan’s benchmark shed 0.1 percent and Indonesia’s market was 0.6 percent lower.
Other markets fared better: South Korea’s Kospi added 1 percent to lead the region and China’s Shanghai index rose 0.5 percent. In Singapore, shares were up 0.6 percent after the city-state reported a second straight quarter of growth as manufacturing and service sectors helped it surface from a deep recession. The economy was seen expanding between 3 percent and 5 percent next year, the government said.
Oil prices hovered above $79 a barrel, with benchmark crude for December delivery down 60 cents to $78.98 a barrel.
Gold prices eased after a strong run saw gold top $1,150 per ounce for the first time ever — they were down $5.10 an ounce, or 0.5 percent, to $1,136.10.
I’ve decided to give both of us a break and just do one piece tonight. That said, I’d like to point to the recent rash of ‘doomsday’ movies being released by Hollywood.
The way matters stand by the time 2012 rolls around there may be nothing left to destroy, although it is kind of weird to see Hollywood’s interpretation of the book of revelations tied to the expiration of the Mayan calendar.
Earthquakes, tidal waves and hurricanes…oh my! Throw in a couple of volcanoes for good measure and the next thing you know you have a ‘nuclear winter’ on your hands without the radioactivity.
Naturally, all we need is meteor strike to set the whole ‘chain reaction’ into motion…but it will be a while before any earthbound observer will catch a glimpse of the celestial ‘rocket sled of doom.’
Which is to say I think we are in far greater danger of experiencing a ‘man made’ disaster rather than a natural disaster that the devout will be quick to lay at the feet of their ‘displeased’ Supreme Being.
Worse, there’s nothing the criminals would like better than a catastrophe (caused by somebody else) that they could use to ‘cover their tracks’.
If they had to give that disaster a little nudge…well, it would be for a good cause as far as they were concerned.
Because that’s what they need right now, something to muddy the water enough so they can slip away with their ill-gotten gains.
I’ll ‘shut up’ now so you can take that much-deserved break.
Thanks for letting me inside your head,
Gegner
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