NEW YORK - Wall Street headed for another precipitous drop today as fears of a punishing global recession stirred panic among investors and sent world financial markets into a tailspin. The Dow Jones industrial average futures fell 550 points, triggering a halt in selling of stock future contracts. The massive decline was caused by increasingly grim news from overseas. In Japan, shares of Sony sank more than 14 percent after it slashed its earnings forecast for the fiscal year. In Germany, Daimler's stock dropped 11.4 percent in morning trading after it reported lower third-quarter earnings and abandoned its 2008 profit and revenue guidance.
While the universe of commodity trading advisors (CTAs) had its best performance in recent years in 2007, many of the stalwart long-term trend followers continued to struggle. Campbell & Co, John Henry and Dunn all experienced double-digit losses on some programs, but the larger CTA universe experienced strong returns as the Barclay CTA index returned 7.5 7%, its best year since 2003. The year started out poorly for most CTAs as bonds chopped around, but soon many long-term trends emerged. Roger Pegorsch, principal of Commodity Futures Services, had his best year since 2002, earning 61.7%. The program earned more than 21% in the energy sector alone. Ram Management Group's Aggressive program earned 58% in 2007. Principals Bob Moss and Jeff Earle attribute the success to their diversi...
...The Dow Jones Industrial Average, S&P 500 and Russell 2000 each ...
In the equity trading room on the 12th floor of the Morgan Keegan Tower in Downtown Memphis, the windows offering a panoramic view of a placid Mississippi River are sealed shut. Despite yet another wild day in the financial markets - this one saw a freeze placed on the free-falling Dow Jones Industrial Average futures amid fears of a global recession - it's an unnecessary precaution.
Welcome to Friday's ride on the Wall Street rollercoaster - or more accurately, the water ride Walk the Plank, a 200-foot dark tunnel followed by a 50-foot drop. The drop came first, before the open of New York trading. The Dow Jones industrial average index futures - a bet, before trading opens, on where stocks will go - dropped 550 points, triggering a temporary trading halt in the contracts in an effort to slow the decline.
NEW YORK Investors encouraged by falling oil prices bid stocks sharply higher Monday as fears of a slowdown in consumer spending eased. The broad-based rally boosted the Dow Jones industrial average more than 112 points. Though oil futures settled narrowly lower, a sharp drop in crude prices earlier in the day built on last week's losses, giving investors hope that gasoline prices would fall in time for the summer driving season and consumer spending would remain strong. After falling below $48 per barrel earlier in the session, a barrel of light crude settled at $48.61, down 6 cents, on the New York Mercantile Exchange.
The Dow Jones Industrial Average and S&P 500 hit all-time highs on Oct 11, 2007. But since then, the Dow, S&P 500 and the Russell 2000 have endured huge volatility and losses ranging from approximately 15% in the Dow to nearly 24% in the Russell. The idea that something has fundamentally changed for the worst in the US economy is gaining traction. But the most recent series of interest rate cuts have softened an already weak US dollar. And with the Fed aggressively cutting rates with Fed Funds futures projecting a 2.5% rate in April, there is no relief in sight for the green back. While a resulting recession is likely to be longer and deeper than anticipated, Peter Kefalas, head of research at Denali Asset Management, is more optimistic based on monetary policy. The degree of ag...
Mideast turmoil takes toll on stocks NEW YORK -- Surging oil prices pulled stocks sharply lower for a third straight session Friday, with bland earnings at General Electric Co. and weak consumer data further dampening the economic outlook. The Dow Jones industrial average shed 396 points in the past three days. Crude futures reached an intraday record of $78.40 a barrel as Israel intensified its attacks on Lebanon. Crude eventually settled at $77.03 a barrel, up 33 cents, on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) kicked off the third quarter by officially entering bear territory, dropping to 11,296, on July 1, a 20% decline from its Oct 9, 2007 high of 14,165. In the background, the US economic slowdown grinds on, with first quarter real gross domestic product coming in at a meager 1%, the unemployment rate rising to 5.5% and consumer confidence circling the bowl at its lowest point since 1980. Record high prices for dollar denominated commodities, especially food and energy, are in large part the result of a remarkably weak US dollar. Andrew Waldock of Commodity and Derivative Advisors LLC is looking for more weakness before the fourth quarter. He expects the DJIA to take out the January/March lows and trade between 10,900 and 12,300. The S&P 500 also...
NEW YORK - Investors encouraged by falling oil prices bid stocks sharply higher Monday as fears of a slowdown in consumer spending eased. The broad-based rally boosted the Dow Jones industrial average more than 112 points. Though oil futures settled narrowly lower, a sharp drop in crude prices earlier in the day built on last week's losses, giving investors hope that gasoline prices would fall in time for the summer driving season and consumer spending would remain strong. After falling below $48 per barrel earlier in the session, a barrel of light crude settled at $48.61, down 6 cents, on the New York Mercantile Exchange.
The Dow Jones Industrial Average Index's recent historic highs have brought great fanfare. A major contributing factor for a dollar decline has been the end of interest rate increases by the Federal Reserve Bank last August after 17 consecutive increases. Today, market sentiment consensus is forming that there is little probability for a rate increase, and if a slow-down in US consumer spending occurs, the potential for a decrease in rates will help lower the dollar value further. By investing in the components of the Dow, investors are really playing global economic and currency events. Traders can no longer make investment decisions with regard to only US market conditions.
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