http://www.todayonline.com/Business...t-tumbles-on-concerns-about-economic-slowdown
Wall St tumbles on concerns about economic slowdown
11:45 PM Jun 23, 2011
NEW YORK - Stocks in the United States tumbled on Thursday as a sharp drop in oil prices fuelled an already weak market that faltered after Federal Reserve Chairman Ben Bernanke's downbeat comments a day earlier.
At about 11.20am in New York, the Dow Jones Industrial Average was down 204.46 points, or 1.69 per cent, at 11,905.21. The Standard & Poor's 500 Index shed 20.20 points, or 1.57 per cent, to 1,266.94. The Nasdaq Composite Index was down 30.76 points, or 1.15 per cent, at 2,638.43.
The S&P was just couple points above its 200-day moving average, a key level of buying support, at 1,262.57.
The International Energy Agency (IEA) said on Thursday it would release 60 million barrels of oil from strategic stockpiles to help the global economy. Brent crude futures for August delivery plunged by more than US$8 after the news, nearly its lowest intraday price since Feb 22. It was down US$5.90 at US$108.31 a barrel, set for its biggest fall since a deep slump on May 5.
Nymex crude lagged the decline but still fell US$4.01 to US$91.40 a barrel, taking prices more than 20 per cent below their early May peak at more than US$114.
"In the short term, oil is selling off on the news of the reserve release, but the main problem here is the economic slowdown," said Mr James Dailey, portfolio manager of TEAM Asset Strategy Funds in Harrisburg, Pennsylvania.
"The stock market has come to a realization that the slowdown is worse than expected, that we are not just in a soft patch, but a long-term slowdown," Mr Dailey said.
New claims for unemployment benefits rose more than expected last week, suggesting little improvement in the labour market this month after employment stumbled in May.
Separate data showed sales of new homes fell 2.1 per cent in May, but inventories hit a record low and the median sales price rose slightly.
Mr Bernanke on Wednesday cut the forecast for US economic growth and said the Fed did not have a precise read on why the slower pace of growth was persisting. Following the bleak outlook, European Central Bank President Jean-Claude Trichet said on Thursday the warning lights were flashing red on the euro zone's debt crisis.
Further souring the mood, China's factory sector barely expanded in June - coming in at 50.1 -even as price pressures eased, reflecting the impact of monetary policy tightening and sluggish global demand on the world's second largest economy. - REUTERS
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Dow Jones Industrial Average (DJI) Edit
Range: 1d 5d 3m 6m 1y 2y 5y max Type: Bar | Line | Candle Scale: Linear | Log Size: M | L
Compare: ^DJI vs S&P 500 Nasdaq Dow
Chart forDow Jones Industrial Average (^DJI)
Dow Jones Industrial Average
(DJI: ^DJI )
Index Value: 11,934.58
Trade Time: Jun 24
Change: Down 115.42 (0.96%)
Prev Close: 12,050.00
Open: 12,049.24
Day's Range: 11,925.42 - 12,057.19
52wk Range: 9,596.04 - 12,928.50
Quotes delayed, except where indicated otherwise. Currency in USD.
Wall St tumbles on concerns about economic slowdown
11:45 PM Jun 23, 2011
NEW YORK - Stocks in the United States tumbled on Thursday as a sharp drop in oil prices fuelled an already weak market that faltered after Federal Reserve Chairman Ben Bernanke's downbeat comments a day earlier.
At about 11.20am in New York, the Dow Jones Industrial Average was down 204.46 points, or 1.69 per cent, at 11,905.21. The Standard & Poor's 500 Index shed 20.20 points, or 1.57 per cent, to 1,266.94. The Nasdaq Composite Index was down 30.76 points, or 1.15 per cent, at 2,638.43.
The S&P was just couple points above its 200-day moving average, a key level of buying support, at 1,262.57.
The International Energy Agency (IEA) said on Thursday it would release 60 million barrels of oil from strategic stockpiles to help the global economy. Brent crude futures for August delivery plunged by more than US$8 after the news, nearly its lowest intraday price since Feb 22. It was down US$5.90 at US$108.31 a barrel, set for its biggest fall since a deep slump on May 5.
Nymex crude lagged the decline but still fell US$4.01 to US$91.40 a barrel, taking prices more than 20 per cent below their early May peak at more than US$114.
"In the short term, oil is selling off on the news of the reserve release, but the main problem here is the economic slowdown," said Mr James Dailey, portfolio manager of TEAM Asset Strategy Funds in Harrisburg, Pennsylvania.
"The stock market has come to a realization that the slowdown is worse than expected, that we are not just in a soft patch, but a long-term slowdown," Mr Dailey said.
New claims for unemployment benefits rose more than expected last week, suggesting little improvement in the labour market this month after employment stumbled in May.
Separate data showed sales of new homes fell 2.1 per cent in May, but inventories hit a record low and the median sales price rose slightly.
Mr Bernanke on Wednesday cut the forecast for US economic growth and said the Fed did not have a precise read on why the slower pace of growth was persisting. Following the bleak outlook, European Central Bank President Jean-Claude Trichet said on Thursday the warning lights were flashing red on the euro zone's debt crisis.
Further souring the mood, China's factory sector barely expanded in June - coming in at 50.1 -even as price pressures eased, reflecting the impact of monetary policy tightening and sluggish global demand on the world's second largest economy. - REUTERS
Basic Chart Get Basic Chart(s) for:
Dow Jones Industrial Average (DJI) Edit
Range: 1d 5d 3m 6m 1y 2y 5y max Type: Bar | Line | Candle Scale: Linear | Log Size: M | L
Compare: ^DJI vs S&P 500 Nasdaq Dow
Chart forDow Jones Industrial Average (^DJI)
Dow Jones Industrial Average
(DJI: ^DJI )
Index Value: 11,934.58
Trade Time: Jun 24
Change: Down 115.42 (0.96%)
Prev Close: 12,050.00
Open: 12,049.24
Day's Range: 11,925.42 - 12,057.19
52wk Range: 9,596.04 - 12,928.50
Quotes delayed, except where indicated otherwise. Currency in USD.
