“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.
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.
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.)
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.
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.
@ Broker,
Thanks for your brilliant insight. I hope everyone else appreciates it as much as I did.
Naw, just kidding. You’re a dumb ass.
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.
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.
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@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.
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.
Yeah, we sure showed those radical Islamists from Iraq who attacked us. Those bastards won’t do that again.
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!
Sir Gill Bates,
Rick wrote, “two unnecessary wars,” you illiterate.
You sound like a typical Liberal. You choose to see only that which matches your facile opinion while ignoring the rest.
@ 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.
@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.
@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.
I could’ve shown you how real fiscal conservatism works if I wasn’t so busy winning the Cold War.
You need to cut the bloat, cut the spending, and create a non-punitive tax climate where people and business can prosper which ultimately results in raised tax revenue. When that happens, you REFUSE to increase spending until the national debt is paid off which, unfortunately, is now approximately 1,000 years past doable.
So, you do what’s being done now: Kill the country to kill the dollar so you can absolve yourself of your debt (basically you bankrupt the U.S.), and hope nobody like China attacks over it.
A balanced budget amendment is required after the shit hits the fan and the dust settles because new generations have to relearn the same old lessons all over again (as a young man, I was a Democrat until I wised up), the whole process begins anew as the next Obama is stupidly voted in, starts spending on failed “programs” like a drunken sailor, and starts racking up the untenable debt again.
I say, Go Ron Paul. End The Fed.
….Getting back on topic…..
Apple’s stock has dropped ~$20 in the past week and it cannot be because the company posted bad results. I’m guessing that the brokers and mutuals are cashing in on a good stock pump up.
@ broker:
Wrong forum. The McCain fanclub page is located elsewhere.
Regarding Apple: it proves that innovative companies are successful no matter what party inhabits the White House. Poorly run companies — and unsuccessful investors, it seems — blame their misfortune on one person, the president (the ultimate cop out).
The only way that the USA will have a sustainable fiscal policy is when lobbyists are banned and all business with elected officials is recorded and posted for all to see . Only then will the useless politicians be tossed out and the people elect representatives and leaders who represent long-term health and prosperity for all, rather than a government of Fortune 500 corporate puppets.
The REAL surviving NYC firefighters think 9/11 was an inside job.
Agree. Ron Paul was the strongest and most pro-freedom, pro-market, fiscally responsible presidential candidate by far in 2008.
So what did the lying hypocritical big-spending corrupt crony-capitalist GOP do? Marginalize him and pretend he wasn’t a “serious candidate”, even though he whipped Giulani’s ass in the primaries.
Sir Gill Bates,
Why do you deny the reality of Brokers’ factual comments?
@ Chapleau,
“Why do you deny the reality of Brokers’ factual comments?”
Possibly because I don’t prescribe to his version of reality like you do. It’s a side effect of forming an opinion without the fair and balanced information of Fox News.
OT. Politics. Hide your head in sand.
Generic ‘Broker’ goes OT and sez: “Obama is a naive fool…”
Yeah! We want that ‘W’ naive fool back again!
(o_0)
Hey kids, you want naive fools, check out the Neo-Con-Job suckers. ‘Broker’ has one in his mirror. What an age of idiocy. The Bush League manages to create the biggest crash since 1929 and these dumdums want more.
Why stocks are back in free-fall:
1) Because they still belong in the 8,000 range.
2) The actual causes of the crash have NOT been solved.
3) DEBT! This includes both personal debt and government debt. Outrageous government debt was invented by Ronald Reagan. Outrageous government debt was perfected by ‘W’.
4) Bandaid patches on a missing limb won’t make it grow back again. The ongoing Bush Depression is the result of permanent damage to the USA, and it wasn’t cause by Democraps. It was caused by Republicraps.
5) Neither political party has a clue about leadership. All they know how to do is play relational games. Actual leadership is beyond the comprehension of their personalities. So guess what lost limb I’m referring to in #4.
Really kids. This is all well beyond your comprehension. So give it up and get back to the computer warz.