Dow sheds 1,164 points in worst day since 2020
Category: News & Politics
Via: vic-eldred • 2 years ago • 43 commentsBy: Suzanne OHalloran (Fox Business)
S E E D E D C O N T E N T
Wells Fargo Advisor Senior Vice President Mark Smith addresses record inflation rates and how it relates to plummeting stock prices on 'Making Money.'
U.S. stocks saw steep selling Wednesday as more retailers revealed the negative impact of inflation amounting to the worst day for stocks since 2020.
The Dow Jones Industrial Average fell over 1,100 points, or 3.6%.
DJIA
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The Nasdaq Composite tumbled nearly 5% and the S&P 500 4%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 31490.07 | -1,164.52 | -3.57% |
| SP500 | S&P 500 | 3923.68 | -165.17 | -4.04% |
| I:COMP | NASDAQ COMPOSITE INDEX | 11418.15432 | -566.37 | -4.73% |
S&P 500
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All 11 of the S&P's biggest sectors fell with consumer discretionary and staple stocks leading the declines, while utilities fell the least.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XLY | CONSUMER DISCRETIONARY SELECT SECTOR SPDR ETF | 142.80 | -9.99 | -6.54% |
| XLP | CONSUMER STAPLES SELECT SECTOR SPDR ETF | 71.84 | -4.94 | -6.43% |
| VPU | VANGUARD WORLD FDS VANGUARD UTILITIES ETF | 155.99 | -1.45 | -0.92% |
Target shares tanked after disclosing rising costs will hurt profitability for the remainder of the year. This follows Walmart's lower-than-expected profit report Tuesday that was also blamed on inflation. The Fed will "have to consider moving more aggressively" if inflation that is running at a four-decade high fails to ease after earlier rate hikes, chair Jerome Powell said at a Wall Street Journal conference.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 161.73 | -53.65 | -24.91% |
| WMT | WALMART INC. | 122.36 | -9.03 | -6.87% |
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Lowe's reported a 3.8% drop in U.S. store sales due to a late spring selling season.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LOW | LOWE'S COS. INC. | 183.91 | -9.96 | -5.14% |
| HD | THE HOME DEPOT INC. | 284.63 | -16.37 | -5.44% |
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White House press secretary Karine Jean-Pierre said Wednesday that the stock market , which continues to witness erratic trading amid soaring inflation , is not something the White House tends to "keep an eye on every day."
Because the White House doesn't give a shit about the rest of us. They have an agenda to get done. One that will harm everyone but the 1%; and of course the Democrats in power that will be pulling in money from that 1% and special interests.
White Supremacy or Putin's fault?
It could be corporate greed. Maybe they are devouring each other.
Sounds like many of the TDS driven are still blaming Trump. So the Democrats can get some more mileage out of that with their lemmings.
If I was the white house I wouldn't look at it daily either. They would see Brandon's chances for reelection running away along with the midterms for the dems. They should close the Whitehouse windows too. The calls of 'lets go Brandon 'are only getting louder.
The real test of a democracy is having to wait another 2 and a half years to vote out a radical enemy of the nation.
Bought index funds today and will reap huge profits.
As long as you did OK I guess it doesn't matter that between the stock market going down and prices going up millions of retirees are concerned about having to go back to work.
Now it's impacting 401k's
The DOW was at 27,480 on election day in 2020...
Even after a correction investors are doing okay!
You got that right, I moved back into fossil fuels, defense stocks and some pharmaceuticals.
What an odd day to choose..
I'm sure that comforts everyone whose seen their portfolio fall 15%in the last 5 months.
At this point we are talking about people with pensions and 401k's. The "investors" who had the wonderful ability to borrow at very low interest rates to go invest and get an average return of about 5-7% are cashing out as the Fed belatedly starts to do what it should have done long ago.
As I'm retiring in two weeks, this current market does scare me and sometimes makes me rethink my plans. But I still have time on my side as I have sufficient assets to cover my costs of living for the next 8 years or so before I need to start drawing out of my 401k. And history has shown us that after these downturns, the markets usually recover in about two years. While history is not a prediction of the future it does help ease the mind on long-term decisions.
I think the ones who are going to be hurt the most are those who are currently drawing on their 401's and pensions now.
Correct....Just like in 2008/2009. My advice to those who are invested in the Market: Put that money into I-Bonds, at least until the democrats are completely out of power.
For those on this site who just cannot do their own homework and research, there is a downside to I-bonds. They cannot be held in an IRA account (either traditional or Roth), they must be held in a taxable account. And there is a significant interest penalty if cashed out within the first five years.
But this can be a good vehicle for part of your retirement. More good advice is to look long-term at any investment approach. But for gods sake, do your homework.. As much as it hurts some people they will need to do research...
I see two unforced errors. That last round of unnecessary stimulus which started out as $600 and wound up as $2000 was inexcusable. And the Fed deluding itself that inflation was transitory for as long as it did is the other. The rest of the disruption to the economy is Covid related and caused.
And Biden continues fighting for the little guy ........ unless of course you have to buy gas for your car ..... or buy groceries ...... or live on a fixed income ..... or buy baby formula ...... or feel good about your investments ...... or ......
Biden is complicit in this era of middle-class decline. That is a big part of what divides us. All those manufacturing jobs lost to cheap labor under the banner of "Globalization" and young people who are unable to buy a home have led to class conflict. It was the lesson of the 2016 election with all the energy divided between the "America First" Trump and the Socialist Sanders.
The inflation, record high gas prices and diminishing value of the American dollar aren't going away anytime in the near future.
Well, except for when he begs other nations to send more oil because he shut down the American fossil fuel industry.
I guess it’s okay when that isn’t American made.
The entire world needs a plan to stop getting oil out of the ground.
The carbon dioxide and plastics are killing us.
I don't think that you can find it anywhere else.
I agree but preferably a plan that doesn’t destroy us first.
People like AOC have their heads planted firmly up the south end of a north bound horse on the topic.
Good. It makes the list of things we shouldn't be doing short enough to remember.
The problem with the ten commandments is it is just too long for most people. And if the Bill of Rights offers any clues, most people can only count up to two and are kind of fuzzy on the first one.
So just leave the oil in the ground and mankind might be around a few more hundred years.
It's great when folks come together here and agree.
The AOC/Sanders wing of the party doesn't understand that they aren't only a minority in the nation but a minority within the Democratic Party itself.
It's not that they are always wrong about everything. It's that they are just so damned annoying they are never going to win anybody over to anything they want to do.
Their understanding of how the energy sector works is almost childlike in nature if not willfully obtuse.
Somebody needs to be holding down the beat of discouraging fossil fuels and encouraging renewable energy.
You got your wish, that’s what Biden has done from day one. The result? Gas that could double in price in less than a year. Driving inflation near the double digit territory. Raising the cost of virtually every consumer product.
They have acted stupidly.
You are acting like all of our inflation is due to one product: gasoline.
And if it were then you should be blaming Putin because his war of choice against Ukraine has completely disrupted fossil fuel supplies.
And if you are blaming Putin then you should stop supporting Trump and the GOP.
Vote for a party that isn't fully owned by the Kremlin.
Welcome to the Democratic Party, Sparty.
And please recycle your MAGA hat responsibly.
No I’m not but thanks for playing.
Well then, maybe Biden can beg Putin to open up the spigot while he continues to hamstring the US energy sector. What do you think? Maybe pretty please with a cherry on top?
Still Trumps fault eh? Wow
Wow again.
Never happen but in fairness it will never happen with the GOP either. I’m not a useful idiot like a lot of you here are.
Well, you got the Super Six wrong. All of them. Tough to do but you got her done.
Congrats!
Flashback: Trump: If Biden is elected, 'the stock market will crash'
https:// nbcnews.com/video/trump-if -biden-is-elected-the-stock-market-will-crash-94451269581 …
For as long as I have been following the market the greatest predictor of what the market will do is whether the Fed is raising or lowering rates. Outlooks are good and multiples are high when rates are low and everything collapses when the Fed takes the punch bowl away.
To beat inflation, rates usually need to be raised above the inflation rate plus GDP, I think. That implies something like ten more half point increases.
It sucks for people like me who only go long in stocks and bonds because all roads lead to substantial losses. Even cash is a losing bet right now.
I invested heavily in Gold and Silver at the beginning of the year.
This is will be the 4th recession I have been through. I am no longer counting on the market for anything.
I always play long ball with stocks and investments. My recovery times are longer it seems with each passing recession. I would have been better staying out of the market entirely; and following my uncle (friend of the family; but likes to be called uncle) investing in precious metals and prime real estate.
The problem with timing the market is that by the time you figure out that it's safe to get back into the market the market has already made its big move upward.
Most of the sound advice about being a long term investor seems to work best while you are young and still have a long term ahead of you.
Old folks like us? This is the nightmare situation that I hope doesn't last too long: high inflation and a bear market.
This was all based on Walmart’s lower than expected projection numbers. They took the shot, we all took the shot, and in six months we’ll both have made up the difference and will still be putting money in the bank.
Every comment otherwise is purely political, thus inconsequential.
A simplistic analysis.
First of all it wasn’t just Walmart and it wasn’t just this report. Both Target and Walmart have had two consecutive quarters of significantly lower than forecasted earnings. Most companies like them, that sell household and discretionary goods, are taking hits because money that would usually be spent there is going to inflated fuel and food costs.
This ain’t going anywhere until inflation is brought under control. And that isn’t happening in six months. I hope I’m wrong but history support my supposition. Yours? Not so much.
“A simplistic analysis.”
It may be.
But as a fellow player, you know as well as I that the market is nothing if not transitory and patience is all that is required. If only we could apply that same reasoning to our politics.
Exactly, sooner or later Joe may get it right.
Don’t hold your breath.
Even his old boss commented on his uncanny ability to always get it wrong.