Oil Record Spike, Dollar Collapses, Stocks Nosedive
Initial repercussions to the bad debt bail out plan are starting to ripple through the world’s economy. Oil surged $25.00, a record spike, on deep seated fears that the $700 billion dollar capital infusion is nothing more than a band aid on a gapping financial wound. Oil has since pulled back ending the session up $15.45 to $120.00/barrel. The dollar suffered a similar fate in the opposite direction, experiencing its steepest decline since the creation of the Euro in 1999. Budget deficit concerns resulting from the plan to buy massive quantities of bad debt are cited for the dollar’s rapid descent. Topping off another extreme market day, stocks took a nosedive across the board with the DJIA falling -373.75 to 11015.69, the Nasdaq gave back -94.92 to 2178.98 and the broad based S&P 500 dropped -47.99 to 1207.09.
Goldcorp
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PowerRating) – The gold producer surged 12.49% or $4.02 to $36.20/share following the spike in gold prices today.
American International Group
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Brinker International
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PowerRating) – The owner of the popular Chili’s Grill restaurant chain slipped 9.31% or $1.94 to $18.90/share after being downgraded by Bank of America since consumers are not eating out as often due to economic concerns.
Federal Agricultural Mortgage
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PowerRating) – Farmer Mac, the third sibling in the Mac, Mae disaster trilogy was smacked down 58.72% or $10.64 to $7.48/share after stating that it can not give assurances that it will be able to comply with minimum capital requirements as of September 30th.
Gold rocked $47.00 higher to $911.70 as investors pile into hard assets to hedge against additional declines. The VIX fear index rose by 5.61% to 33.87 and the EUR/USD climbed .0342 to $1.4808 as the dollar experienced its steepest descent since the advent of the Euro in 1999.
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