US Stock Market in the Tank (Again)
US Stocks Sink, Driving Major Indexes Below Milestones; DJIA Off 150
http://online.wsj.com/article/BT-CO-20110610-709562.html
NEW YORK (Dow Jones)–Another dose of anguish about the global economic recovery sent the Dow Jones Industrial Average below 12000, pointing to a sixth straight weekly decline that would be blue chips’ longest slump since 2002.
The Dow sank 150 points, or 1.2%, to 11974 in afternoon trading, dropping below 12000 for the first time since mid-March. The Standard & Poor’s 500-stock index shed 17, or 1.3%, to 1272. The broad index has notched six weeks of declines, the longest losing streak since 2008.
The Nasdaq Composite turned negative for the year before paring some losses, falling 35 points, or 1.3%, to 2649 recently. The small-cap Russell also turned negative for the year after losing 11 points, or 1.5%, to 781 during the session.
Investors were dour after U.S. May import prices showed a surprise gain of 0.2%, hinting at an inflation push coming into the U.S. from abroad. Overseas, European stocks dropped amid persistent worries over Greek debt and a surprise interest-rate increase by the Bank of Korea helped drive some Asian bourses sharply lower.
The action follows a string of weak readings on the U.S. economy that have joined with pessimism about weaker global growth to weigh on major stock indexes. The mood on the trading floor was grim.
“At the moment there doesn’t seem to be any place to hide,” said Ted Weisberg, president of Seaport Securities. “Best-case scenario, [traders] don’t know what to do. Worst case, they’re simply throwing in the towel because they’re frustrated. Nothing seems to work.”
Another sign of the times or a sign of our future?
Buy American.
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