Rising Oil, Wal-Mart Sales Weigh on Stocks

[NVMojo]

NEW YORK (AP) -

Stocks plunged Tuesday as a jump in oil prices and sliding consumer confidence compounded worries about a weak May sales report from Wal-Mart Stores Inc, sending the Dow Jones industrial average down almost 120 points.

The selling followed three straight days of gains last week, when mild economic data calmed inflation fears and temporarily halted a steep two-week slide. Investors have been wary of the possibility for more rate hikes; this week's key reports on productivity and job growth are expected to provide clues about the Federal Reserve's plan.

But Ken Tower, chief market strategist for Schwab's CyberTrader, questioned the nature of last week's buying as short sellers covering their positions ahead of the Memorial Day weekend. "Last week, there were many signs of short-term investor pessimism," Tower said.

more...

http://www.lasvegassun.com/sunbin/stories/invest-ws/2006/may/30/053001202.html

[Deja Q]

1. Well, that's what they get for offshoring.

Fewer people can afford to buy things.

Those who find new jobs end up getting much less than they were before.

Our economy was NOT MADE FOR OFFSHORING. And the current situation damningly proves it. (never mind the politicians whining and paranoid about buying Chinese-made products, fearing spyware - WELL DUH!!!)

[Warpy]

2. My pop's money man warned me this would happen in March

I told him it was going to happen, it was going to be deeper than he'd anticipated, and that his timing was off.

The only way to turn this around is to stand the neocon economy on its head: raise wages on the poorest, roll back all the tax cuts on the richest, and begin to get this country's financial house in order by an increase of revenue from both ends.

Oh, and some degree of protectionism is also necessary to keep what decent jobs whe have left here in the US.

If we fail to do this, we are heading for depression, not recession.