Stocks Defy Government, GM Slaughtered, Recession Arrives
The stock market defied valiant efforts of world governments to stem its severe downward spiral. The cutting of interest rates and aggressive cash infusion preparations has not triggered the desired response in the market.
Forced selling and redemptions combined with Dow component General Motors being downgraded by Standard & Poors resulted in the DJIA collapsing -634.71 to 8623.39. The Nasdaq was smacked down -95.21 to 1645.12 and the broad based S&P 500 dropped an astounding -73.91 to 911.03.
The Wall Street Journal is reporting that the majority of economists surveyed believe a recession is underway in the United States. The markets await the G7 meeting in Washington, DC this weekend for leadership.
General Motors
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PowerRating) – The automaker was hit hard falling to 1950 levels as Standard & Poors downgraded its credit rating and disappointing European sales forced the shares down 28.94% or $2.00 to $4.91/share
Wells Fargo
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PowerRating) – Gave back 16.93% or $5.40 to $26.50/share on increasing worries about the credit crisis and short sale ban being removed
Eastman Chemical
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PowerRating) – Fought the downtrend adding 0.19% or 8 cents to $42.83/share after reporting better than expected third quarter profits
Pactiv Corp
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PowerRating) – Hefty garbage bag maker fell 0.73% or 17 cents to $22.96/share at the close after being positive for most of the day after being upgraded by JP Morgan.
Gold climbed $11.50 to $918.00, oil fell another $4.43 to $84.52 and the VIX surged to 64.92 as extreme fear grips investors
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