Sev
06-02-2012, 07:17 AM
Selling has continued from may into June and just had the worst market day in 6 months.
Projections are the DOW will drop even lower at the Monday morning bell and will be in correction.
As of Friday it entered correction territory and is close to moving below is 200 day moving range.
This may usher a call for more sell orders.
The S&P 500 has slid 10% an is now in correction.
It should be an exciting day Monday.
http://www.marketwatch.com/story/us-stocks-sink-after-disappointing-jobs-report-2012-06-01
<span style='font-size: 23pt'>U.S. stocks fall 2%-plus, adding to week’s gloom</span>
<span style='font-size: 17pt'>Dow gives up gains for year; Gold surges, dollar sinks</span>
SAN FRANCISCO (MarketWatch) — U.S. stocks started the new month with more than 2% losses Friday, turning the Dow Industrials negative for the year and pushing the S&P 500 into correction territory, after a U.S. jobs report showed slim growth in May.
The report, following downbeat data from China and Europe, raised serious concerns about the health of the global economy and sent investors running into Treasurys and gold.
Click to Play
The Dow Jones Industrial Average DJIA -2.22% fell 274.88 points, or 2.2%, to 12,118.57, its worst day since Nov. 9. The index is down 2.7% for the week and 0.8% for the year.
The S&P 500 Index SPX -2.46% dropped 32.29 points, or 2.5%, to 1,278.04, undercutting what some analysts see as support at 1,280, and also its worst day in more than six months.
The index is 10% off a intraday, 52-week high and 9.9% off its 52-week closing high, both reached on April 2.
A 10% pullback, which is often termed a technical correction, “doesn’t mean we’re in a bear market. But it does mean you have to recalibrate for a world where the U.S. is going to barely grow 2%, Europe is a chronic source of stress, and emerging markets, at least for now, are not contributing much,” said Russ Koesterich, global chief investment strategist at BlackRock iShares.
The Nasdaq Composite Index COMP -2.82% declined 79.86 points, or 2.8%, to 2,747.48, also in a correction.
The S&P 500 culled its year-to-date gains to 1.6%, after losing 3% this week, while the Nasdaq is 5.5% higher for the year so far, despite losing 3.2% for the week, largely due to strong gains in the first quarter.
Safety play
Gold futures rallied as investors sought a safe haven and the dollar fell on speculation that the weak data could trigger more quantitative easing from the Federal Reserve.
Click to Play
The August gold contract GCQ2 +4.05% surged $57.90, or 3.7%, to $1,622.10 an ounce, its best day since August. Read more in Metals Stocks.
Yields on 10-year Treasury notes 10_YEAR +0.14% hit a fresh low of 1.44% and recently traded down 10 basis points at 1.46%. Read more on bonds.
“People are fearing the modest growth we were expecting for the U.S. may fade,” said Scott Wren, senior equity strategist at Wells Fargo Advisors in St. Louis.
“In addition to the European sovereign-debt scenario, which I think won’t go away anytime soon, and fears China is slowing down, over the last couple months we’ve had some deterioration in U.S. data,” he added.
Projections are the DOW will drop even lower at the Monday morning bell and will be in correction.
As of Friday it entered correction territory and is close to moving below is 200 day moving range.
This may usher a call for more sell orders.
The S&P 500 has slid 10% an is now in correction.
It should be an exciting day Monday.
http://www.marketwatch.com/story/us-stocks-sink-after-disappointing-jobs-report-2012-06-01
<span style='font-size: 23pt'>U.S. stocks fall 2%-plus, adding to week’s gloom</span>
<span style='font-size: 17pt'>Dow gives up gains for year; Gold surges, dollar sinks</span>
SAN FRANCISCO (MarketWatch) — U.S. stocks started the new month with more than 2% losses Friday, turning the Dow Industrials negative for the year and pushing the S&P 500 into correction territory, after a U.S. jobs report showed slim growth in May.
The report, following downbeat data from China and Europe, raised serious concerns about the health of the global economy and sent investors running into Treasurys and gold.
Click to Play
The Dow Jones Industrial Average DJIA -2.22% fell 274.88 points, or 2.2%, to 12,118.57, its worst day since Nov. 9. The index is down 2.7% for the week and 0.8% for the year.
The S&P 500 Index SPX -2.46% dropped 32.29 points, or 2.5%, to 1,278.04, undercutting what some analysts see as support at 1,280, and also its worst day in more than six months.
The index is 10% off a intraday, 52-week high and 9.9% off its 52-week closing high, both reached on April 2.
A 10% pullback, which is often termed a technical correction, “doesn’t mean we’re in a bear market. But it does mean you have to recalibrate for a world where the U.S. is going to barely grow 2%, Europe is a chronic source of stress, and emerging markets, at least for now, are not contributing much,” said Russ Koesterich, global chief investment strategist at BlackRock iShares.
The Nasdaq Composite Index COMP -2.82% declined 79.86 points, or 2.8%, to 2,747.48, also in a correction.
The S&P 500 culled its year-to-date gains to 1.6%, after losing 3% this week, while the Nasdaq is 5.5% higher for the year so far, despite losing 3.2% for the week, largely due to strong gains in the first quarter.
Safety play
Gold futures rallied as investors sought a safe haven and the dollar fell on speculation that the weak data could trigger more quantitative easing from the Federal Reserve.
Click to Play
The August gold contract GCQ2 +4.05% surged $57.90, or 3.7%, to $1,622.10 an ounce, its best day since August. Read more in Metals Stocks.
Yields on 10-year Treasury notes 10_YEAR +0.14% hit a fresh low of 1.44% and recently traded down 10 basis points at 1.46%. Read more on bonds.
“People are fearing the modest growth we were expecting for the U.S. may fade,” said Scott Wren, senior equity strategist at Wells Fargo Advisors in St. Louis.
“In addition to the European sovereign-debt scenario, which I think won’t go away anytime soon, and fears China is slowing down, over the last couple months we’ve had some deterioration in U.S. data,” he added.