Market slide resumes as consumers pull in their horns
After a one-day respite, the stock market is getting pounded again today as investors worry that suddenly cautious consumers won’t spend enough to justify higher stock prices.
Separate measures this morning showed both the spending and confidence levels of consumers dropping in recent weeks amid mounting job losses and fear that the inchoate economic recovery could falter as government stimulus efforts wind down.
The Dow Jones industrial average has fallen throughout the morning and was down 212.29 points, or 2.1%, to 9,750.29 as of 10:15 a.m. Pacific time. The Dow and major averages are on track for their second straight weekly decline.
The second large drop in the last three days raises the specter that the market could be in for the most significant downturn of its nearly eight-month rally.
Today’s losses are broad-based, with the biggest drops coming in the energy, materials and financial sectors.
Safe-haven sectors such as healthcare and consumer staples that fare better in troubled economies are holding up better. Yields on Treasury securities fell as investors sought safe harbors. The yield on the 10-year Treasury note declined to 3.40% from 3.49%.
--Walter Hamilton
Consumers voted in hope. The election was clear. Then everyone started looking after themselves. Gloom, doom and unproductive chatter filled the airwaves 24/7. And the consumer voted again. Saying "no" to the way things are. Maybe we'll take another look in the new year. After a long deep breath, and a resigned show-me attitude.
Posted by: swf | October 30, 2009 at 07:56 PM
The simple answer is that government stimulus efforts will not wind down. Look what happens when they do.
Posted by: Schigolch | October 31, 2009 at 01:14 AM
O-B-A-M-A
Posted by: Andrew Gross | October 31, 2009 at 03:59 AM
P-A-R-T-Y-o-f-N-O
Posted by: swf | October 31, 2009 at 11:16 AM