Stock market plunges, with Dow down a record 1,176 points

Stock market plunges, with Dow down a record 1,176 points in the Big Board's biggest one-day drop

By Matthew Rocco Published February 05, 2018 Markets FOXBusinessOpens a New Window.


Dow drops nearly 1,600 points

Dow Jones Industrial Average off sessions lows after dropping nearly 1,600 points.


Wall Street continued a broad selloff Monday, as the Dow plunged a record 1,178 points amid inflation fears.
The Dow Jones Industrial Average closed at around 24,344. The S&P 500 fell 113 points to 2,648. The Nasdaq Composite dropped 273 points to 6,967.
The blue-chip index’s 4.6% decline reflected its worst day since at least Aug. 10, 2011. Coming off its worst week in two years, the Dow wiped out its 2018 gains with its pullback Monday.
Stocks have lost steam with investors refocusing on the potential for faster inflation growth. Job gains in January fueled those concerns, turning a spotlight on the Federal Reserve and its timeline for interest rate hikes. A stronger-than-expected gain of 200,000 U.S. jobs was seen as raising the odds that the central bank will increase its benchmark rate in March. The report also offered more evidence that the U.S. economy is gaining strength with wages climbing at their strongest pace since 2009.
A period of higher interest rates and stronger inflation would create a stark contrast to recent years, when accommodative monetary policies—headlined by near-zero interest rates—helped support the U.S. economy and equities.
But the business climate will remain a positive for the stock market after Monday’s selloff, according to Bob Doll, chief equity strategist at Nuveen Asset Management.
“This is technical, not fundamental,” Doll told FOX Business’ Liz Claman on “Countdown to the Closing Bell.” “This economic cycle is far from over.”
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Greenberg Capital’s David Greenberg noted that there’s “more traffic on the way down” on Wall Street, driven in part by automated trading.
“There’s a tremendous amount of people that are going to be forced out of their positions at lower rates,” Greenberg said.
The CBOE Volatility Index, known as the market’s “fear gauge,” soared more than 70% to a multi-year high.
The yield on the benchmark 10-year Treasury note ticked lower to 2.74%, as traders moved from equities into bonds. Yields fall as prices rise.

Ticker	Security	Last	Change	%Chg
AAPLOpens a New Window.	APPLE INC.	156.49	-4.01	-2.50%
INTCOpens a New Window.	INTEL CORPORATION	44.52	-1.63	-3.53%
MSFTOpens a New Window.	MICROSOFT CORP.	88.00	-3.78	-4.12%
CSCOOpens a New Window.	CISCO SYSTEMS INC.	38.74	-2.19	-5.35%

http://www.foxbusiness.com/markets/2...-day-drop.html

Typical 1st Quarter sell off.

Send in your 2017 IRA contribution before you do your taxes.

It's a good thing, driven mainly by the higher yield bond market and potential for rising interest rates, which are part of the promises this President made, higher interest rates so people could earn better returns on their savings in CDs and Bonds. The 10 year bond market was up to 2.9% highest it's been in many years so that is a nice long term rate of earnings and very good for people with savings especially retired people and those planning to retire soon who for years haven't been able to earn anything on their savings.

Also the stock market rose so fast based on optimism, but grew faster than the underlying plant and equipment investments which take time to invest and build so stocks were over-valued based on actual assets. When stocks are based solely on earnings, instead of earnings and asset values, there's an inequity and the stock prices are too high.

Investors need to pull back a little and wait for the actual investments in new plant and equipment to be made which increases the asset values of the companies, then the stocks can safely and properly rise back up.

How many companies just got and reviewed the new tax plan? Gee, what a coincidence that the plan just came out with the details and they are selling off some gains to pay their taxes for 2017 and invest in their business with the windfall.

How many companies sold off some profits to BUY equipment, give bonuses, because now they can write off that equipment within the 1st year?

How many companies are placing orders to by THAT equipment and get their business plan going for growth in 2018?

Gee...doesn't all that buying contribute to GDP?

And how many businesses just came out bringing all that money back to rebuild in America?

There are many reasons for this market adjustment...look for a bull market in the 2nd quarter.

NO CHICKEN LITTLE PELOSI, ALL YOU DEMORATS AND SNOWFLAKES...THE SKY IS NOT FALLING...AND THIS IS NOT ARMAGEDDON...LOL

Remember the DemoQuacks claiming our corporations would just their windfall to buy back their stocks?? DemoQuacks are so stupid. No, if they were doing that the stock market would have bloomed up to 30,000. They are doing exactly what we want them to do, raising wages and investing in new plant and equipment which will be expenses with earnings, profits and increased asset value to show themselves later on. Economy is great. Trump needs to stick to his Agenda and keep moving the ball forward, it's also nice to see the bond market and interest rates coming up for CDs and bondholders, because that is spreading the economic growth across all sectors, not just the stock market.

Interesting timing. The market was the lowest while Trump was giving his speech. I am not a big believer in coincidence.

It was interesting, in fact, Fox News cut off his speech to go cover the market and as soon as they did, in just a few minutes it rebounded to half of the drop, then later in the afternoon fell again. It's just trading and correcting overvalued stocks competing with the much recovered bond market. When you can buy safe US treasuries and earn almost 3%, a lot of funds are going to diversify, sell some overpriced stocks, take the profit and reinvest in the bonds. That's what people were doing so 401 K's will still be fine, if not stronger with more safe bonds, and be more diversified.

I headed that Wall Street was in good hearth these days.