« | »

Stocks, Bonds, Worst Quarter Since 2008

Buried in the ‘Business Day’ section of the New York Times:

Second Quarter Ends With Dow Down 10% and S.&P. 500 Off 12%


June 30, 2010

The stock market rounded out its worst quarter since late 2008 on Wednesday with a late slide that spared few blue chips.

A day after the broad market tumbled to its lowest level so far this year, it fell a further 1 percent Wednesday after Moody’s warned that it might lower the credit rating of Spain. The news from Moody’s, coupled with disappointing data on the American jobs market, cast more doubt over the health of the global economy.

The Dow Jones industrial average fell 96.28 points, or 0.98 percent, to 9,774.02 on Wednesday. The Standard & Poor’s 500-stock index was down 10.53 points, or 1.01 percent, to 1,030.71, while the Nasdaq composite index was off 25.94 points, or 1.21 percent, at 2,109.24.

Wednesday’s decline left the Dow down nearly 10 percent for the second quarter. The broader S.& P. 500 index and the Nasdaq both lost about 12 percent in the quarter. In all, it was the worst quarterly showing since late 2008, when the financial crisis was running high.

So far this year, the S.& P. 500 index is down 7.57 percent, and the Dow Jones industrial average is down 6.27 percent.

Howard Silverblatt, the senior index analyst for Standard & Poor’s, said at the end of the day “nobody wanted to be in the market, and this was not even a Friday. This is definitely a more dangerous market,” he added. “We are getting closer to a bear market,” he said. A bear market is typically characterized by a 20 percent decline from the market’s recent peak.

Many sectors of the market have fallen hard this year. Energy and materials shares have lost about 13 percent, while consumer discretionary stocks have declined more than 9 percent.

Gosh, why would energy stocks go down? Isn’t Mr. Obama promising us a new ‘green’ energy economy?

The same worries that have dogged the market for months — concern that the economy might worsen, along with the debt crisis in Europe — continue to hang over Wall Street…

Concerns over monthly jobs figures scheduled for release on Friday were heightened Wednesday after a report by the employer services company ADP said private employers added 13,000 jobs in June, well below the 60,000 that economists polled by Thomson Reuters had predicted.

Perhaps it’s time to poll a different set of economists. Maybe find some that aren’t working for the Democrat National Committee.

Meanwhile, the Dow Jones industrial average now stands only a few points higher than it did on election day November 4, 2008.

Where are all the pundits asking, “are you better off now than you were 18 months ago?”

This article was posted by Steve on Thursday, July 1st, 2010. Comments are currently closed.

5 Responses to “Stocks, Bonds, Worst Quarter Since 2008”

  1. Petronius says:

    The stock market is hanging by a thread.

    Bonds are holding firm, but eventually this will change when inflation kicks in.

    Nerobama’s War Against Prosperity is beginning to show real results.

    Shutting down the oilfields was a masterstroke. It’s what the boys in the EOB call a twofer –– it ratchets up the price of oil, while it also ratchets up unemployment in Red States.

    Of course the full brunt of Nerobama’s destructive economic policies has yet to be felt. And the Bush tax cuts will expire in just six more months.

    On the other hand, the Democrats’ big tax increases on capital gains, dividends, and decedents’ estates may not have much impact. Because at the present rate there aren’t going to be many capital gains, dividends, or valuable estates left for them to tax.

    The November election is absolutely crucial to our economic survival.

    Ceterum censeo hostem esse delendum.

  2. proreason says:

    The runup after the Moron took over was probably manipulated, or else investors believed that the fascists favored businesses would be so fat with payoffs that they would raise the all tides for a few months.

    Ultimately, stocks are dependent on profits and profits are dependent on economic growth and economic growth is dependent on freedom and stability.

    It’s this simple. You can’t buy shares in USAgov Inc. And when USAgov Inc is sucking in nearly 50% of the money in the country, the stock market cannot possibly prosper.

    Look at the body blows that economic freedom has endured under this master criminal:
    – The “stimulus” redistributed $1 Trillion from your future to todays bag men
    – The shafting of Chrylser bond-holders demonstrated that contract law in this country is dead
    – The “pay czar” demonstrates the the criminal cabal intends to control the success level of businesses
    – The takeover of Student Loans demonstrates that the cabal will steal whatever it wants to steal
    – The 92% acedemics in government demonstrates that America will be controlled by people with no business sense whatsoever
    – The threatening of banks demonstrates that force is not out-of-bounds for controlling business
    – Fannie and Fredie clearly demonstrate that the cabal isn’t going to change its insane redistribution policies
    – Obamycare demonstrates that another 20% of the economy has now been taken over by the regime.
    – The threats of price controls are another indication of totalitarian rule
    – Thug tactics with BP prove that the criminals are not constrained by common sense. It’s like beating up the only auto mechanic in town.

    The list could be much much longer

    No doubt the businesses most willing to bribe Obama will do very well, but the market as a whole cannot improve until it is clear that these despicable criminals will be savagely evicted from office.

    • wterrier says:

      Awesome post Pro.
      A lot of rumors in the trading community that under 700 S&P ALL pension funds in America were underwater, insolvent. And thats when Bernanke intervened with his put.
      Today we bounced off the 38.2% fibonacci retrace to the March ’09 low.

  3. canary says:

    A lot of talk about the problem in buying Gold in the media. As in the FDR ACT.
    This explains what some are saying, mentions Powell’s take on gold in Saudi Arabia. Obama is capable of anything as he builds his army of criminals, and Obama has reiterated to ticking off China that the value of the dollar has dropped, and we don’t owe them what we owe them.


  4. tranquil.night says:

    Cashin’ out.

    These are just the tremors before the eruption.

« Front Page | To Top
« | »