Tech stocks spooked as Wall Street sinks on recovery fears, financials

“The Dow industrials suffered its worst slide since July on Friday on concerns that the economic recovery won’t be robust enough to sustain the seven-month stock rally, while financials sank on renewed worries about Citigroup’s balance sheet,” Ellis Mnyandu reports for Reuters.

“Investors unloaded shares across the board on the day that marked the end of the fiscal year for many mutual funds, putting the S&P 500 on the brink of a correction,” Mnyandu reports. “Analysts said there were doubts that the recovery would be strong enough to justify higher stock prices a day after government data showed the economy returned to growth in the third quarter.”

“Anthony Conroy, head trader for BNY ConvergEx, an affiliate of the Bank of New York, in New York, [said], ‘You need growth, you need a healthy financial system to have a healthy economy. There are questions out there about how things go from here. Right now the government is fueling the system with cash. That can’t last forever,'” Mnyandu reports.

“All 30 Dow stocks finished in the red, with JPMorgan the top drag with a drop of 5.8 percent to $41.77, followed by Exxon Mobil Corp, off 3.1 percent at $71.67,” Mnyandu reports. “On Nasdaq, Apple Inc, the iPhone maker, lost 4 percent to $188.50, while Google Inc, the Web search leader, declined 2.7 percent to $536.12.”

Full article here.

24 Comments

  1. I expect Apple to give up 20-30% (maybe more) over the next 2 months. They deserve to be higher, and much more consistent, but the market has never been able to understand (much less trust) what Apple’s value is, which is why its price shifts so much.

  2. This is the current issue: Cash-For-Clunkers Massively Distorted GDP

    Obama is a naive fool who, for some unknown reason, seems to believe the gov’t can fix things. He never attended a history class (or visited the DMV) in his life it would seem. That’s the overriding problem and we’re stuck with it for another 3+ years.

    (Disclaimer: I voted for McCain, reluctantly, as I would have greatly preferred a real fiscal conservative. Maybe next time, I’ll get the chance.)

  3. AAPL has no reason to go sharply against the markets. Therefore, if the global retreat of this week continues into the coming weeks, AAPL will pull back as well. And as usual, if DOW (and other major indices) drop 15%, AAPL will drop 30-40%.

    In a way, this would be quite healthy, since the rapid rise over the past 8 months was just way too extreme, even for completely healthy economy.

  4. Broker,

    In my experiences talking with Obama voters, I’ve found that many of them don’t think things through very well, if at all. Most of them, if not all, seemed to have been consumed with some sort of rage and desire to “punish” George W. Bush – as if he’s not a retired millionaire two-term U.S. President who’ll see no punishment at all and will very likely be vindicated in the long run – for a nebulous list of imagined “sins.”

    That’s about it. That’s why they voted for Obama. For “change.” Undefined “change.”

    In the end a handful of “Independents” (read: unable to commit to ideas) ultimately punished themselves and, unfortunately, all of us by voting for Obama.

    I almost don’t blame the hardcore Libs, as they are too far gone and at least they’ve committed themselves to a socialist, government-centric ideology, however failed (USSR, etc.) it may be.

    It’s these wishy-washy “Independents” that vote based on whichever way the wind’s blowing in late October every 4 years that ought to have some sense smacked into them.

    If the Republicans fail to nominate a real conservative in 2012, I’m seriously thinking of voting for the Constitution Party candidate. It may be a “wasted” vote, but at least I’ll be voting for a candidate who shares many of my convictions. McCain was a Republican in name only and I winced when I pulled the lever.

  5. Drunken, coke-snorting Wall $treet cowards afraid of their own shadows. That sums up today. Never mind looking at earnings. They’re more concerned about whisper numbers and rumors than reality.

  6. All is not lost just yet. If history repeats, and we know it eventually does, then after the Republicans pick up many seats in the 2010 midterms, Obama may have to drastically change course (like Clinton had to) and govern from the center – or even center-right (again, like Clinton) – if he wants any chance at re-election.

    First Obama has to get some sense and realize that:
    – He’s not the second coming of Jesus
    – His FOX News vendetta is laughable and sets a very bad precedent
    – His Edmunds.com vendetta is even more ridiculous
    – The U.S is a center-right country and he needs to rein in the Lib nutballs like Pelosi and Reid

    Otherwise, even better, we’ll have a Republican President again in about 38 months – if we make it. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  7. @One U.S. Voter:

    I had 8 long years to think things out while watching Bush and Cheney sink us into two unnecessary wars and squandering a budget surplus while letting big pharma dictate the crappy Medicare prescription “donut hole” that’s making the elderly go broke.

    I’m sick of your fear tactics about a so-called socialist/commie takeover. I’ll bet that you’ll be first in line when its time to collect your “socialist” Medicare benefits.

    What I fear is losing my job and then not being able to get health insurance because I have cancer and going bankrupt to pay my medical bills. I don’t see many Republicans stepping forward to the aid of people like me.

    You and your ilk are selfish sociopaths. The only good thing I can say about you is you must love Macs.

  8. Rick from the land of fruits and nuts,

    Yeah, after the radical Islamists attacked the U.S. murdering nearly 3,000 innocent people, we should’ve blown them a big wet kiss, placed a big bullseye on the Sears Tower, and left fueled up jumbo jets waiting on the runways of America instead, you pansy Lib.

    Maybe if your loved ones are among the next 3,000+ to die when they attack next under Obama’s weak, ineffectual, naive, and forgetful watch, you’ll wake the fsck up.

    My dad was a NYC firefighter. He died in/under Tower 2 on 9/11/2001. And I’m sick of wusses like you, you naive, cloistered priss.

    What you really ought to fear is ever meeting me face to face, you stupid fsck.

  9. F’ing stock mini-disaster! Oh what a difference a few weeks makes and an awful President’s anti-business, spread-the-wealth philosophy to reward those who have no desire to innovate, earn, dream, or even work! We r headed for dark times for sure! Socialist societies, have no desire to do anything except collect a check from the government. Apple is a product of capitalism and a shining example of what can be accomplished by rich people and brilliant minds, driven by buyers and believers like us. Obama hopes to change all that. Thanks to those who voted for him!

  10. @ Another US Voter,

    “Rick wrote, “two unnecessary wars,” you illiterate.”

    Yes, of which Iraq was one, fart breath. And please let us know when Al-Qaeda is eliminated and Osama bin Laden is either on trial or dead.

  11. @Broker

    You have plenty of GOP congressmen and senators in Washington D.C. who have been engaged in mucking around with the federal system for the past decade and more. About the only thing that they have done differently is to pander more to big oil, protect the environment a lot less, and return borrowed money to U.S. citizens in the form of tax cuts rather than the “Cash for Clunkers” and similar programs that you appear to dislike rather strongly. The GOP raised the national debt and annual deficits higher than anyone in history. Add up the deficits during the Reagan and Bush adminstrations and you will find that they were responsible for a disproportionate amount of the current national debt. And, before you get started with the “Obama has the largest deficit ever” spiel, please understand I justifiably consider FY10 to be the direct result of the Bush years and associated economic crisis. In addition, the cost of the war is now included in the budget rather than maintained as a separate item to make things look better – the approach known as “faux fiscal conservatism.”

    The current crop of GOP politicians are no more fiscally conservative than anyone else in Washington D.C., as far as I can tell. You would be hard pressed to find a true fiscal conservative anywhere in politics. In my opinion, a fiscal conservative is a person who advocates a pay-as-you-go approach in most circumstances, leading to generally balanced federal budgets without resorting to those Social Security surplus IOUs. Instead, borrowed money is regularly used to buy votes and influence. It is both a reprehensible violation of the public trust and an unsustainable excess that will lead to dire financial and social consequences in the future.

  12. @One U.S. Voter:

    I would be willing to match my intellectual prowess and depth of reasoning against yours anytime. Liberal does not necessarily equal “socialist,” just as independent does not mean “wishy-washy” and conservative does not necessarily equal “absolutely correct in every respect.”

    People are more complex than that. Perhaps the independents recognize that slavish adherence to the precepts of the two-party system (which was not intended by our founding fathers) is the true problem.

    Please go ahead and waste your vote, if you choose to do so. As far as I am concerned, your vote is already wasted.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.