Wall Street has worst day in 4 months

[Robbien]

NEW YORK - Wall Street had its worst day in more than four months Monday as the dollar weakened and concerns about the strength of the retail industry arose following a rare sales decline at Wal-Mart Stores Inc. The Dow Jones industrials fell 158 points.

. . .


As the dollar's slide continued, it hit a 20-month low against the euro though it did for a time move higher against the Japanese yen. The dollar's fall raised concerns that foreign investors were sensing weakness in the U.S. economy and would pull some of their investments from U.S. markets.

. . .

Light, sweet crude settled up $1.08 at $60.32 a barrel on the New York Mercantile Exchange. Crude prices gained ground after an attack on an oil facility in Iraq and comments by Saudi Arabia's oil minister that OPEC could consider further production cuts next month.

. . .

He also questioned whether retailers have run the risk of hurting profit margins by offering steep discounts to lure shoppers during an increasingly competitive Black Friday.

"The American consumer now expects that the holiday season isn't just a time to spend a lot of money but a time to get some bargains."

http://www.montereyherald.com/mld/montereyherald/business/16110204.htm

[tridim]

1. I think the "American consumer now expects" to spend less

Because the vast majority of us HAVE LESS TO SPEND.

It's really not that difficult to analise just by talking to the neighbors.

[Tight_rope]

16. Well...I guess that depends on your neighbors.

If you have neighbors like "FUCK YOU" Cheney, Paris Hilton, and THE BUSH CRIME FAMILY...well then you should be buying up the Walmarts.

[Sherman A1]

2. Doesn't the market

usually have a few bad days - post Turkey Day? It's a time to "correct" and "adjust" portfolios before the end of the year.

[slater71]

3. The close on 12/31/1999 was 11497.12 and six years later.....

How good is the economy?

[wain]

7. Granted this was before 911 & a mild recession was in progress

Using a modest growth rate of 6% to adjust for market recovery, the DOW would be over 16,000 today, not the 12,000 we have. We'll see how a longer cycle of 8 years fares.
x(

[Yavin4]

14. The 9/11 Effect Was More Than Offset By Historically Low Interest Rates

Yes, there was a huge negative effect on the markets due to 9/11, but everyone forgets that we had interest rates at 1% from the end of 2002 to the middle of 2004. Given such low rates, we should have had a booming economy since borrowing costs were below the rate of inflation.

[Deja Q]

20. And not offshoring would have contributed to that theoretical 16k too.

Which means the suits would have not just a shitload more money, it'd be the mutha of all constipation more money. :think:

Even with 9/11 occurring, offshoring has done more harm. :(

[wain]

24. Having barely survived being outsourced

I am not very sympathetic to idea of killing careers, dreams and ambitions. A lot of dedicated, talented and loyal people are heartlessly cut adrift all to keep the price value of stock growing. I'd like to see a longitudinal study of lasting affects of outsourcing on companies and employees, let alone the lasting impact on the ex-employees and their families. What are the long run implications of outsourcing? How does outsourcing reallocate people assets to new jobs? How does outsourcing contribute to such job creation?
x(

[dipsydoodle]

4. OPEC could consider further production cuts next month.

My understanding, from TV news coverage here in the UK , is that this will be compounded by oil price increases to compensate for reduced value of the US$.

[acmejack]

6. Now that would be the dagger to the heart.

Wonder if the subject came up at all while The Dick was hanging out with the fellows over there this weekend?

[Deja Q]

21. Maybe Dick was over there telling them not to cut?

The oil folks wouldn't benefit from a cut.

[William769]

5. It's the Democrats fault!

:sarcasm:

[Warpy]

8. I'm wondering what those internal numbers look like

The blowdried bobbleheads are chirping about how crowded the stores in the malls were, of course.

The size of the crowd never tells the whole story.

[Tight_rope]

19. Yeah..I waited and got a toaster for $4 bucks at Walmart...

I need one and didn't want to pay $20 for one. I was already up from partying so I went to Wally world at 4:54am Friday. I was home by 5:20am. So I guess you can say I was part of that crazy crowd. But I didn't spend more then $25 that day.

[ckramer]

9. This is called "profit taking"

It's certainly not worse for the folks who grabbed the money.

[NVMojo]

10. WalMart ...the canary in the mine shaft ...how ironic

[dogfacedboy]

23. It makes me sick to think that our economy

is so affected by the ups and downs of a second rate outfit like WalMart. Our economy used to rise and fall based on the performance of large steel companies, and other manufacturing.

[brentspeak]

11. Our entire economy, once the envy of the world, is now based on retail sales

As politicians (yep, even some Democrats, like Jimmy Carter and Bill Clinton) have deliberately looked the other way as the USA's manufacturing has moved almost completely out of the country, every working American's economic fate has become tied to how much money is spent at shopping malls.

[barb162]

12. You got that straight. Every politician has his or her hand

in screwing the American worker because they are all afraid of taking on the companies shippng jobs and TECHNOLOGY out of this country. Once the tech is gone, we are finished. Asia will in fact be eating our lunch and the corporate chieftains stealing our "treasure" will wind up in Swiss chalets,living off their millions. NAFTA, free trade, etc. is a bunch of bullshit that is destroying this country. If there is one politician in this country addrssing this issue, I'd like to know who he or she is.

[Phx_Dem]

22. Howard Dean

is the only Pol I have heard talk about trade in an honest way.

The sad irony is that if Americans ever stop consuming at current levels, (due to lack of discretionary income etc.) the world economy will seriously suffer, especially in countries like China.

[Doremus]

31. Senator elect Sherrod Brown has a sign on his desk: NAFTA + CAFTA = SHAFTA

[lpbk2713]

13. The US auto industry has all it can do to stay solvent.

And they were once the pillar of our economy. BushCo has given away the keys to the candy factory.

[Tight_rope]

17. The down fall of the auto industry has no one to blame but themselves

They were the one's who started this outsourcing shit back in the 70's

[high density]

15. No kidding, how long can this country run on credit cards?

I'm amazed it has lasted this long.

[Tight_rope]

18. You and me both...I don't have one...Haven't since 1998.

Been sleeping good for 8 years now.

[sarcasmo]

25. My Crystal Ball says many more to come.

Then watch as they blame the new House and Senate.

[Joe Bacon]

26. Watch the Pre$$titute$ blame the Democrats

they will blame the dollar collapse on Pelosi

[HockeyMom]

27. I shopped on Ebay in my Pjs

Spent $30, used a debit card, and spent no money on gas. When I finished, I went upstairs to bed.

How is that for a Midnight Black Friday?

[Doctor_J]

28. Where are Krugman and Jeff Faux and Doug Henwood on these

issues? I like Rubin, but

1. He was helped by the tech boom, and
2. He was part of Big Dog's triangulation of the economy (welfare deformity and such)

I'd like to hear from liberal economists.

[Clarkie1]

29. No worries....after such a great rally the market was ripe for an excuse to sell.

It's back on solid footing today.

[Anakin Skywalker]

30. Good! Die, Corporate Whoremongers!

[Psephos]

32. Pension funds and insurance reserves depend on the market

which means it's not only corporate whoremongers but you and me who have stake in this.

Peace.