CNNMoney.com Market Report：Brutal day on Wall Street
ow tumbles 415 points, biggest one-day point loss since 2001, as investors eye China, thwarted attack on Cheney, drop in durable orders.
By Alexandra Twin, CNNMoney.com senior writer
February 27 2007: 4:17 PM EST
NEW YORK (CNNMoney.com) -- Stocks tumbled across the board Tuesday, after declining markets in China and Europe and a steep drop in durable goods orders triggered a massive selloff on Wall Street.
According to early tallies, the Dow Jones industrial average (down 382.29 to 12,249.97) tumbled 415 points, its biggest one-day point loss since the day the stock market reopened after the Sept. 11th attacks. On that day, the Dow lost 684.81 points.
On a percentage basis, the Dow lost about 3.3 percent. The blue-chip barometer has now fallen for five sessions straight.
The broader S&P 500 (down 49.06 to 1,400.31) index fell 3.5 percent and saw its biggest one-day percentage loss in nearly four years. The S&P 500 also slumped for the previous four sessions.
The Nasdaq (down 96.65 to 2,407.87) composite tumbled about 3.9 percent and saw its biggest one-day percentage loss since Dec. 9, 2002, according to early tallies.
The Russell 2000 (down 30.81 to 792.88) small-cap index lost almost 4 percent.
Trying to limit the declines, the New York Stock Exchange said it imposed trading curbs as of 1:03 p.m. ET, around the time the Dow slipped 200 points, CNN confirmed.
Treasury bonds rallied as investors sought a safe place to park their money while the dollar fell. Oil prices inched higher and gold prices fell.
Here's a look at what was moving near the close.
Market selloff: Year of the bear?
Chinese stocks slumped 9 percent Tuesday - the worst one-day selloff in a decade - on concerns that the government would interfere to cool the speculation that drove the Shanghai market up nearly 130 percent last year. (Full story).
Other Asian markets slumped in tandem. European shares also tumbled.
"The selloff demonstrates somewhat starkly the inter-connectedness of stock markets around the world," said Hugh Johnson, chief strategist at ThomasLloyd Global Asset Management.
"Markets can decline in one seemingly isolated part of the world and that decline can be transmitted to other parts of the world through the psychology," he said.
The slump in world markets exacerbated concerns that Wall Street is due for a selloff after a nearly eight-month rally that has sent the Dow industrials to record highs and the Nasdaq and S&P 500 to more than 6-year highs.
Market veterans have been looking for a stock selloff for some months now due to the combination of slowing economic and earnings growth expected this year, said Harry Clark, CEO at Clark Capital Management.
Although some analysts have been calling for a pullback of about 10 percent for the market, Clark said a smaller drop is more likely.
"We'll probably see a decline of about 4 or 5 percent and then it will be done," Clark said, noting that a lot of the selling will be washed out within the next week or so as the shock wears off.
ThomasLloyd Global's Johnson agreed that the selling should ease. But markets will "continue to be vulnerable to big decisions by big policy-makers in big places like China," he said.
News that Vice President Dick Cheney was the apparent target in a Taliban suicide bombing attack in Afghanistan added to the day's worries.
A morning report in the United States showed a steeper-than-expected decline in durable goods orders in January, adding to concerns about slowing economic growth.
Slowing growth ultimately drags on corporate profits, making stocks more expensive relative to earnings.作者: xzhao2 时间: 2007-2-28 16:18 67% of SP500 up today.作者: weili 时间: 2007-2-28 16:31 NEW YORK - Wall Street rebounded fitfully Wednesday from the previous session's 416-point plunge in the Dow industrials as investors took comfort from comments by Federal Reserve Chairman Ben Bernanke but still showed signs of unease about the economy.
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Bernanke's remarks to Congress that he still expects moderate economic growth gave some investors confidence to look for bargains. A recovery in some overseas markets following a worldwide selloff Tuesday also lent some support to U.S stocks, but the advance lacked some conviction — the major indexes fluctuated through the morning and into the afternoon, with the Dow rising as much as 137 points before pulling back and then advancing again.
The Fed chairman allayed some of the fears about a slowdown in the U.S. and Chinese economies that fed Tuesday's drop; remarks earlier in the week from former Fed Chairman Alan Greenspan warning that a U.S. recession could take hold later this year contributed to Tuesday's declines.
Investors parsed a series of economic reports out Wednesday, hoping to glean a sense of where stocks were headed. Bernanke's comments and a gross domestic product reading that mostly met expectations helped bring out some buyers. Nevertheless, investors remained cautious and didn't rush headlong into stocks and discount the possibility of a further shakeout.
"It's typical that you get a bounceback the next day," said Joseph V. Battipaglia, chief investment officer at Ryan Beck & Co. "Now we're essentially flat on the year. Can we go up from here or down? That sorting-out process will continue now."
A recovery in China's Shanghai Composite Index, which had fallen nearly 9 percent Tuesday, also helped boost U.S. stocks, although other Asian markets and European exchanges saw declines of more than 1 percent.
According to preliminary calculations, the Dow Jones industrials rose 52.07, or 0.43 percent, to 12,268.31.
Broader stock indicators also managed gains. The Standard & Poor's 500 index climbed 7.77, or 0.56 percent, to 1,406.81, and the Nasdaq composite index rose 8.27, or 0.34 percent, to 2,416.13.
Bonds fell as stocks tried to recoup some losses. The yield on the benchmark 10-year Treasury note rose to 4.56 percent from its low for the year of 4.47 percent late Tuesday.
The dollar was mixed against other major currencies, while gold prices fell.作者: thesunlover 时间: 2007-2-28 16:33 Dead cat bounce. Searain knows it well.
Run away before your legs and feet leave your body.作者: thesunlover 时间: 2007-3-1 09:45 As I said, Dead Cat Bounce!
