Dow falls through 9,000 and picks up speed

I was reading finance news and I just got shock with the news Dow Jones fall below 9000 level. Read the news I found on msnbc.

 

 

A runaway train of a sell-off turned the anniversary of the stock market peak into one of the darkest days in Wall Street history Thursday, driving the Dow Jones industrials down a breathtaking 679 points and deepening a financial crisis that has defied all efforts to stop it.

 

Stocks lost more than 7 percent, $872 billion of investments evaporated, and the Dow fell to 8,579. When the average crashed through the 9,000 level for the first time in five years in the final hour of trading, sellers had only begun to hit the gas pedal.

 

As bad as the day was, even worse was the cumulative effect of a historic run of declines: The Dow suffered a triple-digit loss for the sixth day in a row, a first, and the average dropped for the seventh day in a row, a losing streak not seen since 2002.

“Right now the market is just panicked,” said David Wyss, chief economist at Standard & Poor’s in New York. “Nobody wants to take on any risk. Everybody just wants to get their money and put it under the mattress.”

It all took place one year to the day after the Dow closed at its record high of 14,164. Since that day, frozen credit, record foreclosures, cascading job losses and outright fear have seized the market and sapped 39 percent of its value.

Paper losses for the year add up to an staggering $8.3 trillion, according to figures measured by the Dow Jones Wilshire 5000 Composite Index, which tracks 5,000 U.S.-based companies representing almost all stocks traded in America.

 news from msnbc

Investors world over lose $10 trillion so far

Good Evening friends, Finance is my field of interest and stock market is something I love to invest money. i read following news on web which is a bitter fact as on today. Investors from all over world had lost $10 trillion so far this year. The world stock market remains on down side majority time of the year. Read following news from Indian Express website.

In a tight bear hug since the beginning of this year, stock market investors across the world have lost more than 10 trillion dollars — an amount more than 10 times of the entire investor wealth in India.

All 52 equity markets of the world have suffered a loss of USD 10.5 trillion so far this year, leading rating agency and financial data provider Standard and Poor’s said on Friday.

The worldwide loss this year is 11.7 times of the total market valuation of all the listed companies in India, which currently stands at around 900 billion dollar. Indian stock market valuation has nearly halved so far this year.

Year-to-date, all 26 developed markets have lost ground while nearly all the 26 emerging markets have suffered loss. Jordan, was the only country that managed to return positive YTD returns (up 0.96 per cent).

“September was the worst month for emerging markets since August 1998,” Silverblatt said, as all the 52 markets were down during the month, resulting in a loss of USD 4.1 trillion loss in equity. In the third quarter all the 52 markets posted a loss of USD 5.8 trillion which amounted to a year-to-date loss of USD 10.5 trillion.

 

The fall was more severe in emerging markets, as they fell by 27.98 per cent, while developed markets lost 21.62 per cent during the third quarter of this year, according to Standard & Poors Senior Index Analyst Howard Silverblatt.

 

The US was down by 8.85 per cent, while Russia was off by 45.52 per cent. The Philippines was the only market that reported positive returns during the third quarter (0.04 per cent).

For September, emerging markets lost 18.76 per cent while developed markets fell 14.80 per cent. The US continued to perform better than other markets with a loss of 9.29 per cent during the month, Silverblatt said.

As per Standard & Poors Index Services, some of the stock markets that witnessed an erosion of over 50 per cent in their valuations so far this year include — Pakistan (52.18 per cent), India (50.34 per cent), Ireland (51.66 per cent) and Iceland (69.17 per cent).

Among the BRIC peers India suffered the maximum loss, while for Brazil it was the minimum. Brazil reported a loss of 31.09 per cent, Russia (46.85 per cent) and China (46.35 per cent).

Other major losers include — The United States (19.47 per cent), Japan (23.24 per cent), The United Kingdom (32.02 per cent), Germany (33.75 per cent) and France (30.32 per cent)….

news from indianexpress

Dow Jones Stock Market 778 Point 7% Crash -2

We are talking 778 point loss in single day in the American stock market Dow Jones. We are going to continue with that news.

 

“The stock market was definitely taken by surprise,” said Drew Kanaly, chairman and CEO of Kanaly Trust Company, referring to the House vote. “If you watched the news stream over the weekend, it seemed like it was a done deal. But the money is being held hostage to the political process.”

 

Stocks had fallen from the get-go Monday morning. In addition to expectations for the bailout, there was also news that troubled Wachovia had to sell its banking assets to Citigroup. A number of European banks also collapsed.

 

But the possibility that the House won’t pass the bailout plan caused stock losses to accelerate.

 

“It’s a huge disappointment,” said Jack Ablin, chief investment officer at Harris Private Bank.

 

Although another version of the plan will likely go before Congress, investors are concerned that passing the bill could be a more drawn-out process.

 

On Monday afternoon Treasury Secretary Henry Paulson said markets around the world are under great stress and that a plan needs to be passed as soon as possible.

 

“People do expect that there will be some plan put in place, but even before this vote, there was doubt as to whether it would be enough to avert the crisis,” said Ken Kam, portfolio manager of the Marketocracy Masters 100 (MOFQX) fund.

 

Investors thought they would be debating whether the plan was good enough, he said, not whether the plan would even go through.

 

But the ‘good enough’ question remains in place.

 

“We are charting new territory in policy tools and implementation with this program and there’s no guarantee that it will work,” said Alan Gayle, senior investment strategist at RidgeWorth Investments.

 

“That a number of institutions haven’t been able to last through the negotiations adds to the uncertainty,” Gayle said, referring to Washington Mutual’s failure on Friday and the buyout of Wachovia Monday.

 

Stocks are also extremely choppy and volatile as Wall Street moves to the end of the third quarter. Financial institutions and funds are expected to have their books settled before Wednesday, so there is a lot of last-minute scrambling, Gayle said.

 

Treasury prices rallied, sending yields lower, as investors sought safety in government debt.

 

 

News courtesy CNN Money

Dow Jones Stock Market 778 Point 7% Crash -1

 

 

Good Morning Friends, my day NOT starts with walk today. I not go for walk as I weak up at 7-00 am. There are many reasons to weak up late. Conscious Dhirendra Patel inside me is feeling bad because I miss my daily routine walk because of my little laziness. I give strong commitment to my self for not repetition of this action again.
              

I am person of HRM. People management is my subject of interest. Finance is another subject of interest for me. I am taking active interest in Indian stock market as well as American stock market. We all are aware with the news that on Monday American stock market Down Jones was down by 778 point.

Stocks crushed with 778 point which is biggest single day point loss ever. It is around 7% down in a single day. Many news channels called it like the day America Trembled. Approximately $1.2 trillion in market value is gone after the House rejects the $700 billion bank bailout plan. Read the complete news at CNN Money.
 

Approximately $1.2 trillion in market value is gone after the House rejects the $700 billion bank bailout plan.
 

Stocks skidded Monday, with the Dow slumping nearly 778 points, in the biggest single-day point loss ever, after the House rejected the government’s $700 billion bank bailout plan. 

The day’s loss knocked out approximately $1.2 trillion in market value, the first post-$1 trillion day ever, according to a drop in the Dow Jones Wilshire 5000, the broadest measure of the stock market.
 

The Dow Jones industrial average (INDU) lost 777.68, surpassing the 684.81 loss on Sept. 17, 2001 – the first trading day after the September 11 attacks. However the 7% decline does not rank among the top 10 percentage declines.
  

The Standard & Poor’s 500 (SPX) index lost 8.8%, its seventh worst day ever on a percentage basis and the biggest one-day percentage drop since the crash of ’87, when it lost 20.5%. The Nasdaq composite (COMP) fell 9.1%, its third worst day on a percentage basis and also its worst decline since the crash of ’87.
 

Stocks tumbled ahead of the vote and the selling accelerated on fears that Congress would not be able come up with a fix for nearly frozen credit markets. The frozen markets mean banks are hoarding cash, making it difficult for businesses and individuals to get much-needed loans.
  

More story in next post.

News courtesy CNN Money