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Stocks lose $700B invalue this week

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By Ken Sweet, contributing writer July 29, 2011: 6:10 PM ET

Government debt crisis will hurt your creditStudent aid at stake in debt crisisDebt ceiling deadlock: Who will get paid?Reid says no deal, disputing Republicans - CNNHungry Girl Lisa Lillien serves up her recipe for success

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NEW YORK (CNNMoney) -- Washington's inaction regarding the debt ceilingcost investors nearly three-quarters of a trillion dollars in this week -- at leaston paper.This week's rout erased $700 billion worth of market capitalization, accordingto financial data company Wilshire, which owns the Wilshire 5000 Index. Thatindex, which tracks every actively-traded stock in the United States, posted aloss of 4.2% for the week. The Dow fell 4.2% for the week, while the S&Pdeclined 3.9%.While paper losses and gains comeand go as stocks fluctuate, this wasthe worst week for investors in more than a year.

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It's doubtful that most investors believe the U.S. will fail to raise the debtceiling and default on its obligations, but Congress and the White Houseremain far away from reaching an agreement before the August 2 deadline.

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rorovrsworld, 3 seconds ago

What Recovery? i honestly feel its just been a down hill slide since2007-2008

OnlyAmerican, 9 minutes agoAnyone in the market for the short haul is stupid.

rorovrsworld, 1 minute ago in reply to OnlyAmericanthats how brokers make money...

1350, 46 minutes agoAll of you middle class who thing the Republican way is right (richdon't care) how would you have liked to have your retirement/healthcare in the stock market right now. Yea.........STUPID.rorovrsworld liked this

ilaavu, 52 minutes agoThe U.S.A is finished.rorovrsworld liked this

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBORBanks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: 2011 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones Indexeproprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM 2011 is proprietary to Dow Jones & Company, Inc. ChicMercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2011. All rights reserved. Moquote data provided by BATS.

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Economy grinds to haltas consumers pullback

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By Annalyn Censky @CNNMoney July 29, 2011: 12:02 PM ET

Government debt crisis will hurt your creditStudent aid at stake in debt crisisDebt ceiling deadlock: Who will get paid?Reid says no deal, disputing Republicans - CNNHungry Girl Lisa Lillien serves up her recipe for success

Mortgage & Savings CenterMortgages

After picking up in 2010, economic growth slowed in the first six months of 2011, the governmentreported Friday.

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NEW YORK (CNNMoney) -- Consumers all but shut their wallets in the secondquarter, causing the U.S. economy to grow at a tepid pace.Today's featured rates:

To make matters worse, growth in the first quarter was much slower thaninitially thought, according to new government figures released Friday."It's quite worrisome as the economyremains at stall speed in the secondquarter," said Sal Guatieri, senior economist with BMO Capital Markets. "If thatcontinues, then it would raise the risks of a double dip."Gross domestic product, the broadest measure of the nation's economichealth, rose at an annual rate of 1.3% in the second quarter, the CommerceDepartment said.While that's an increase from the revised 0.4% growth rate in the first threemonths of the year, it is hardly good news. The government originallyreported that the economy grew at a 1.9% annualized rate in the firstquarter.The growth in the second quarter was also below the 1.8% increase expectedby economists surveyed by CNNMoney.Dubbed a "soft patch" by economists and even Federal Reserve ChairmanBen Bernanke, the economy's sluggishness was due to a variety of factorsthat weighed on consumers and businesses.Higher gas prices for one, hit Americans hard when they peaked at a national

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Top 10 consumer complaintsOverall, consumer spending, which accounts for roughly 70% of grossdomestic product, picked up only 0.1% in the second quarter -- marking asignificant slowdown from growth of 2.1% in the first three months of the year."The major disappointment in the report was the weakness in consumerspending, and it wasn't just fewer automobiles being sold due to Japan'searthquake. There was broad-based softness in consumer spending." Guatierisaid.

Recession widens racial wealth gapIt marked the slowest growth in consumer spending since the fourth quarter of2009.Looking back further, it also now appears that American consumers had lessdisposable income than originally thought from 2007 through 2010, whereascorporate profits were revised significantly higher for 2009 and 2010.The government revised the GDP data back to 2003 and also found therecession was worse than originally thought.Overall, the theme of the U.S. recovery continues to be one driven bycompanies holding cash on the sidelines and building up their infrastructure,rather than a recovery driven by consumers.Americans on Main Street continue to be held back by slow job growth andthe housing slump, even as major companies report strong profits and havemostly solid balance sheets.Where the jobs areAccording to the latest GDP report, investment in commercial real estatesurged 8.1% in the second quarter, and business spending on equipment andsoftware rose 5.7%.Meanwhile, exports rose 6%. The U.S. continues to import far more goodsand services than it exports to foreign countries, but because imports grewat a slower rate of 1.3%, that also contributed positively to GDP.The aftermath of Japan's earthquake and tsunami may have been one of themajor reasons import growth slowed, as the U.S. bought fewer auto parts fromthe country.Friday's GDP report also sparked cries from economists for lawmakers to actquickly in raising the debt ceiling and agree to a deal to cut the national deficitover the long term.

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"We don't expect a recession, but if policymakers drag their feet -- which theyare doing -- it will be a little more likely," said Paul Dales, senior U.S.Economist for Capital Economics.Guatieri said: "If the government does not raise the debt ceiling and is forcedto cut back spending and Social Security checks, that could undermineconsumer spending even further."-- CNN's Katy Byron contributed to this reportFirst Published: July 29, 2011: 8:44 AM ET(PDLO

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KXS5020, Today 12:38 PMEconomy won't grow untit we bring jobs home and stop importingworkers from other countries. Unfortunately, Congressmembersand government officials are sold out to the special interests, andthat's where the representation of the People cease and corruptionbecome the norm.

ADiff, Today 12:12 PMWow, it's a Green economy!Paul Hilburger liked this

bestthumper, Today 11:25 AMLooks like they are saying it all started in 2007, isn't that when thedemocrats took over control of the congress? Intresting veryintersting.1 person liked this.

Nathan Scandella, Today 05:55 AMIf you look at the bar chart at the top, it's pretty clear that modesteconomic growth coincided EXACTLY with the 2009 fiscal

stimulus program (aka the Recovery Act). That was a $787Bprogram, which when spent over two years, equates to about 3% ofGDP.Look at the chart again. The amount by which the GDP numbersgot better over that time period was just about exactly 3% of GDP.In other... show more

bestthumper, Today 11:22 AM in reply to NathanScandella

Remember that economic growth was aided by thetemporary hiring of over 10,000 census workers.

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Dow Sinks for 6th-Straight Day in Worst Week in12 Months

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By Adam SamsonPublished July 29, 2011 | FOXBusiness

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FOX Business: The Power to ProsperA stalemate in Washington over lifting the debt ceiling, combined with gloomy economic data, sent the bluechips tumbling more than 4% for theweek.

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Today's MarketsThe Dow Jones Industrial Average slipped 69.9 points, or 0.79%, to 12,143, the S&P 500 fell 8.4 points, or0.65%, to 1,292 and Nasdaq Composite dipped 9.9 points, or 0.36%, to 2,756. The FOX 50 dropped 7.7points to 918.

RELATED TOPMergers and AcquPharmaceuticals

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The markets fared better for the monththan on the week: the Dow and S&P 500

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both lost 2.2%, while the Nasdaq inched lower by 0.6%.

Dow Jones

The House of Representatives is expected to vote on the debt bill proposed by Republican Speaker JohnBoehner, which will raise the debt ceiling in two moves, on Friday night after the vote was postponed lateThursday.

Inflation

The new plan includes a trigger that would require a balanced budget amendment to be passed the secondtime the debt ceiling is raised, a move that would be highly unpopular among many Democrats. Indeed,Harry Reid, the Senate Democratic Leader, has repeatedly said the bill will fail in the Senate, and theObama Administration has threatened to veto a similar plan.LAST 5 STOC

A failure to raise the debt limit by the Aug. 2 deadline may force the U.S. to miss benefits payments formillion of Americans, fail to pay certain government contractors and potentially default on its debt. Ratingscompanies have also warned that a downgrade of America's coveted 'AAA' credit rating will come iflawmakers fail to craft a credible plan to reduce the deficit. As the negotiations tick on it is becoming lessand less likely that a major deal will be crafted, analysts have said, meaning a downgrade may be morelikely.

FOX50FOX 50 INDEX

GSTHE GOLDMAN S.

While it is impossible to say exactly what the effects of a downgrade, or worse, default, would be, manyeconomists predict it will have a negative affect on the economy.

MSFT

There is not "any historical episode [that is] a close parallel to current US circumstances," analysts atGoldman Sachs wrote in a research note to clients, adding "uncertainty about market effects is high."

GOOG

An initial reading on U.S. gross domestic product showed the economy expanded at an annualized pace of1.3% in the second quarter, worse than the 1.8% economists expected. Additionally, first-quarter GDP wasrevised significantly lower to 0.4% from the previous estimate of 1.9%. Indeed, the pace of the economicrecovery has been quite slow by historic standards.

XOM

"The current recovery is, nominally speaking, the worst of any recovery since the early 1920s," wrote DanielGreenhaus, chief global strategist at BTIG, in a research note. "That is truly both a historic and awfulaccomplishment and yet it underscores the size and scope of the issues facing the United States."Reuters/University of Michigan's final revision of July consumer sentiment fell to 63.7 from a preliminaryreading of 63.8 coming in just shy of economists' forecasts of 64. Consumer sentiment directly affectsseveral sectors, particularly retailers like Best Buy (BBY: 27.60, -0.34, -1.22%).A report from the Institute for Supply Management on manufacturing activity in the mid-west came in belowexpectations as well. The index fell to 58.8 from 61.1 the prior month, falling short of expectations of areading of 60.In corporate news, Merck (MRK: 34.13, -0.80, -2.29%) and Chevron (CVX: 104.02, -1.01, -0.96%) are thelast of six Dow components to report second-quarter earnings this week.Merck revealed profits excluding one-time items of 95 cents a share on revenue of $12.2 billion. Thepharmaceutical giant's bottom-line matched estimates, while sales beat calls of $11.8 billion.Chevron earned $3.85 a share, well better than the $3.56 analysts estimated. The second-largset U.S. oilcompany's revenue grew to $67 billion, missing estimates of $71.6 billion.Energy markets were in the red.Light,sweet crude fell $1.74, or 1.8%, to $95.70 a barrel. Wholesale RBOB gasoline slipped by less than apenny to $3.11 a gallon.Prices at the pump were stable overnight. A gallon of regular costs $3.71 on average nationwide, up from$3.54 last month, and well higher than the $2.74 drivers paid last year.Amid the volatility, traders once again flocked to gold, which has continually hit record highs. The preciousmetal gained $15.00, or 0.93%, to $1,631 a troy ounce. Silver climbed 31 cents, or 0.78%, to $40.11 a troyounce.In currencies, the euro gained 0.32% against the U.S. dollar, while the greenback fell 0.41% against abasket of world currencies.Corporate NewsYahoo (YHOO: 13.10, -0.40, -2.96%) reached an agreement with Alibaba Group and Softbank overAlibaba's Alipay e-payment unit.Vodafone (VOD: 28.10, +1.25, +4.66%) plans on paying out the $3.2 billion dividend it is expected to getfrom Verizon Wireless to shareholders, sending shares soaring.

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Amgen (AMGN: 54.70, +1.27, +2.38%) posted adjusted second-quarter profits of 1.37 a share, zippingpast estimates of $1.28.UBS (UBS: 16.48, +0.21, +1.29%) tapped Bank of America's (BAC: 9.71, -0.08, -0.82%) Mike Stewart tobe its co-head of global equities.Foreign MarketsThe English FTSE 100 fell 0.99% to 5,815, the French CAC 40 dipped 1.1% to 3,673 and the German DAXdipped 0.44% to 7,159.In Asia, the Japanese Nikkei 225 slipped 0.69% to 9,833 and the Chinese Hang Seng fell 0.58% to22,440.

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Business MarketsU.S. debt confusion spooks world marketsAP

AP In this July 28, 2011 photo, traders work at the New York Stock Exchange. Global stock markets fell on Fridavote on raising the government's debt limit and avoiding a potential default.

Concerns that American lawmakers wont agree a deal to raise the U.S. debt ceiling in the nexreverberate around markets on Friday, with stocks down again.If Congress doesnt raise the debt ceiling, the amount of debt the government can accumulatecould be forced to default on at least some of its obligations.While investors have been jittery about that prospect for weeks, the inability this week of Repto get their own party to agree on a plan has reinforced those fears with just days to go.Even if they do come up with a deal in time, ratings agencies could still downgrade U.S. debtborrowing costs up and make it more difficult for Congress to reduce the amount of money tEven if the debt ceiling deadline is met, the current proposals on the table and lack of bipartwith the deficit issues in a credible and timely fashion, suggest that the risks of a U.S. credit dsaid Robin Bahr, an analyst with Credit Agricole.A U.S. downgrade or default would harm an already fragile global economy. There were signrecovery was losing steam- eurozone inflation unexpectedly dropped and economists are prefigures set to be released later in the day will be poor.Oil has been pushed down by the slow growth as well, with the main New York contract tradibarrel lower at $96.65.

In Europe, the FTSE 100 index of leading British shares was down 0.9 per cent at 5,820 whilper cent at 7,127. The CAC-40 in France was 1.2 per cent lower at 3,667.Wall Street was poised for a decline in the open, Dow futures were down 0.5 per cent at 12,12Poors 500 futures fell 0.5 per cent at 1,290.The U.S. open though could well be impacted by the first estimate of economic growth in theEconomists are forecasting that the economy expanded at an annual rate of 1.7 per cent, dowquarters 1.9 per cent growth, amid weak consumer spending, dismal hiring and cuts in goverWhile the main focus of concern this week has been on the debt debate in the U.S., there areweeks bailout deal for Greece hasnt been enough to assuage fears that bigger economies sucget sucked into the vortex of Europes debt crisis.Moodys warned on Friday that the pressures on Spain have risen since the deal as it warnedon the country in the next three months.Though Moodys said a one-notch downgrade was the most likely outcome, investors are fretSpain could get worsen in the coming months especially now that Prime Minister Jose Luis Rcalled early general elections for November.Europes debt problems are continuing to weigh on the euro even at a time when the dollar isU.S.s own debt issues. By early afternoon London time, the euro was 0.5 per cent lower at $1Earlier in Asia, Japans Nikkei 225 stock average closed down 0.7 per cent at 9,833.03. Honglost 0.6 per cent to 22,440.25 and Chinas Shanghai Composite Index shed 0.3 per cent to 2,7South Koreas Kospi slid 1.1 per cent to 2,133.21. Australia and Bombay also declined while Scent.Keywords: U.S. debt ceiling crisis

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Print StoryWeekly review: Sensex dips by 525 ptsAgenciesPosted online: 2011-07-30 15:31:58+05:30MumbaiThe BSE benchmark Sensex plunged by 525 points to a 5-week low of 18,197.20 in the week under review onheavy selling pressure on fears of negative impact on corporate growth due to interest rate hike by the RBI amidmaintaining hawkish stance on further monetary actions.Global turmoil due to US debt tensions and weaker-than-expected US economic data too affected the market mood.Traders as well as investors kept themselves away from making major purchases due to postponement of a vote in theHouse of Representatives on a US debt plan.The Reserve Bank of India in its first quarter review of the monetary policy 2011-12, on July 26, hiked the short-termlending (repo) and borrowing rates (reverse repo) by 50 basis points to tame high inflation, making all personal andcorporate loans more expensive.The apex bank has also revised its fiscal-end inflation projection to 7 per cent from 6 per cent earlier.Interest rate sensitive stocks from realty, banking and auto segments bore the brunt of heavy selling.Offloading long positions in view of the expiry of July contract too aggravated the situation.Metal stocks also were at the receiving end, following fall in metal prices at the London Metal Exchange (LME).The BSE benchmark Sensex resumed slightly higher at 18,753.35 and hovered in a range of 18,944.60 and 18,131.86before ending the week at 18,197.20, showing a loss of 525.10 points, or 2.80 per cent, from its last weekend's level.

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Sputtering Economy Sends Dow Plunging 266Points

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By Adam SamsonPublished August 02, 2011 | FOXBusinessPrint

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FOX Business: The Power to ProsperTraders shrugged off a last-minute dealto avert an unprecedented default onAmerican debt after heightenedeconomic tension ignited an intenseround of selling that sent the Dowplummeting for the eighth-straight day.

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Today's MarketsReuters

The Dow Jones Industrial Averageplummeted 266 points, or 2.2%, to11,867, the S&P 500 slid 32.9 points, or2.6%, to 1,254 and the Nasdaq Composite tumbled 75.4 points, or 2.8%, to 2,669. The FOX 50 dipped 21points to 897.RELATED VIDEO

Bullish Over EarningsWhere to invest

In a sign of the breadth of the selloff on Wall Street, 90% of the volume on theNew York Stock Exchange was in declining stocks. Adding to the negativesentiment, the blue chips have ended in the red for the past eight sessions -shedding 858 points -- the longest losing streak since the financial crisis threeyears ago.A bout of disappointing economic data, including a steep downward revision tofirst-quarter economic expansion and an unexpectedly sharp decline in U.S.manufacturing, has led market participants to doubt the robustness of theeconomic recovery in recent sessions."The U.S. economy is very close to stall speed," wrote Peter Fisher, head offixed income at asset-management giant BlackRock. "With the weakness of theU.S. economy becoming increasingly apparent, consumption and investmentdecisions are rising to the forefront."Data released Tuesday showed personal spending fell for the first time innearly two years in June. The gauge of consumption dipped 0.2% , accordingto the Commerce Department, shy of the 0.2% increase economists expected.Meanwhile, personal income grew at a pace of 0.1% for the month, slowerthan forecasts of 0.2%. On the whole, the report points to weakeningconsumption, which directly factors into broader economic growth measures."The dismal employment market and increasing prices are pushing Americansto save more and spend less," wrote Chris Christopher, senior principaleconomist at IHS Global Insight.The closely-watched monthly employment report for July is on tap for Friday,and is expected to show the economy added 57,000 jobs, which would keepthe unemployment rate steady at 9.2%. The labor market has been extremelyslow to come back during the economic recovery.

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Debt Woes in FocusPresident Obama signed a bill to raise the debt ceiling after the bill sailedthrough the Senate earlier on Tuesday. The measure was the subject of heateddebate on Capitol Hill and in the halls of the White House for months andvoting came hours before the deadline set by the Treasury Department.

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While the passage of the bill will help the country avoid a catastrophic default,the chance remains that credit ratings companies may choose to downgradeAmerica's coveted 'AAA' credit rating, which could strongly impact world creditmarkets, analysts say.Fitch said Tuesday the compromise-deal is in line with the 'AAA' credit rating,and represents a step in the right direction. However, the ratings companynoted the country will have to confront difficult choices to balance tax andspending while dealing with a weak economic backdrop.The debt deal "does not put the U.S. on a sustainable fiscal path," economistsat Barclays Capital wrote in a note to clients, adding "weakness in U.S. growthhas the potential to offset most of the savings claimed by the debt reductionpackage."Every major sector fell sharply on the day, leaving few shelters in the equitiesmarkets. Conglomerates like General Electric (GE: 17.21, -0.76, -4.23%) andUnited Technologies (UTX: 78.93, -3.41, -4.14%) struggled the most on the

day.Volume on the New York Stock Exchange was the highest in more than four months, which marketparticipants see as a sign of conviction in the selloff.

In a continued flight to safe assets, gold soared to yet another nominal record high. The precious metalsettled higher by $22.80, or 1.4%, to $1,645 a troy ounce.The euro zone debt crisis also worried traders on Tuesday after BNP Paribas, Europe's biggest lender byassets, took a roughly $757 billion writedown on its Greek sovereign debt. Greece, which has anenormous public debt burden, is in need of a rescue package from euro zone authorities and has seen itscredit rating being sliced into junk territory and just slightly above default.There were also concerns that the sovereign debt crisis would spillover into larger, more prominenteconomies, like Spain and Italy, according to Peter Boockvar, managing director at Miller Tabak + Co.Energy markets were in the red. The euro fell 0.48% against the U.S. dollar, while the greenback rose0.16% against a basket of world currencies.Light, sweet crude fell $1.10, or 1.2%, to $93.79 a barrel. Wholesale RBOB gasoline dipped 2 cents, or0.55%, to $3.04 a gallon.Prices at the pump were once again stable overnight, but remain highly-elevated as compared to last year.A gallon of regular costs $3.70 on average nationwide, up from $3.57 last month, and the $2.74 driverspaid last year, according to the AAA Fuel Gauge report.Corporate News

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Pfizer (PFE: 18.14, -0.87, -4.58%) revealed second-quarter earnings, excluding one-time costs, of 60cents a share, topping estimates by a penny. The pharmaceutical giant posted revenue of $17 billion, justslightly higher than analysts forecast.Sirius XM Radio (SIRI: 2.07, -0.04, -1.90%) raised its full-year new subscriber outlook to 1.6 million, froma previous forecast of 1.4 million, sending shares jumping.Barclays (BCS: 14.02, -0.33, -2.30%) unveiled a 38% drop in quarterly profits, prompting a fresh round oflayoffs.Foreign MarketsThe English FTSE 100 fell 0.7% to 5,733, the French CAC 40 dipped 1.5% to 3,533 and the German DAXplunged 2.2% to 6,801.In Asia, the Japanese Nikkei 225 tumbled 1.2% to 9,845 and the Chinese Hang Seng dropped 1.1% to22,422.

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Business MarketsSensex dips below 18,000 mark to over six-week lowPTI

The Hindu Brokers said trading sentiment turned bearish after Bharti Airtel posted poor results and the Prime Ministers Economic AdvisoryCouncil lowered the countrys yearly growth forecast. File photo

The Bombay Stock Exchange benchmark Sensex on Wednesday slumped below 18,000 mark to its lowest in over sixweeks, shedding 169 points as funds sold banking, auto and heavy machinery stocks over worries over a slowingdomestic growth amid weak global trends.The Bombay Stock Exchanges 30-scrip index, which had lost 204 points in the last run, touched the intraday low of17,859.50 before closing 169.34 points down at 17,940.55, a level last seen on June 16.Sensex leaders RIL and Infosys lost by 1.19 per cent and 0.76 per cent, respectively. Lenders led by ICICI Bank andHDFC Bank fell on worries over sticky inflation and rising interest rates might dent the revenue on fall in loan demand.Interest rate-sensitive auto and realty stocks also suffered losses on concerns over rising borrowing costs.Brokers said trading sentiment turned bearish after telecom major Bharti Airtel posted poor results for the first quarterof this fiscal and the Prime Ministers Economic Advisory Council lowered the countrys yearly growth forecast to 8.2per cent from 9 per cent.Sentiment at home was also influenced by a weak Asia and lower opening of European stocks on nagging sovereigndebt worries after it emerged that Italy had approached the European Union to settle a potential debt crisis at homeafter yields on Italian bonds touched the highest in Euro-history.U.S. data showing decline in consumer spending in June further dampened the sentiment.Broad-based National Stock Exchange index Nifty dropped below 5,400 level before ending 51.75 points to lower to5,404.80.Keywords: BSE, Sensex, stock market

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DJIA 11,383.68 -512.76 -4.31% NASDAQ 2,556.39 -136.68 -5.08% S&P 1,200.07 -60.27 -4.78%

Dow plunges 513 points; 2011 gainsare wiped outStocks plunge as worries about global growth cause traders todump stocks and seek safety. Gold briefly tops $1,680 but fallsback. Treasury yields fall as the dollar rises.52%

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8/4/2011 4:19 PM ET | By Charley Blaine, MSN Money

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TICKERS IN THIS ARTICLEStocks plunged, with the Dow Jones Industrial Average ($INDU -4.31%)tumbling 513 points, their worst one-dayloss since December 2008 and ninth-worst point loss, as investors worried that the U.S. economy may be slipping backinto a recession. The overall market carnage wiped out all of the 2011 gains for the major averages.The market rout was prompted in part by concerns that the Federal Reserve won't try to boost the economy again andthe prospects of little -- if any -- help on the way from the federal government. A huge concern was what Friday's big jobsreport will say. In addition, there were deep fears about the health of the European financial system; stocks on thecontinent fell sharply. Stocks in Brazil were down nearly 6%.With today's losses, the market is now in a correction, with the Dow, Standard & Poor's 500 Index ($INX 4.78%)and the Nasdaq Composite Index ($COMPX -5.08%)all down more than 11% from the closing highs for2011, reached on April 29. Nearly all of the declines for the indexes have come since July 21; the Dow's loss in thattime is about 1,340 points.Gold briefly surged above $1,680 an ounce for the first time and then sold off, and crude oil dropped below $88 a barrelfor the first time since mid-February.The Dow closed down 513 points, or 4.3%, to 11,384. The S&P 500 was off 60 points, or 4.8%, to 1,200, its lowest levelsince Nov. 30, 2010. The Nasdaq was off 137 points, or 5.1%, to 2,556, its lowest level since Dec. 1, 2010. TheNasdaq 100 Index ($NDX -4.57%)was down 106 points, or 4.6%, to 2,207.While gold fell back, investors bid hotly for Treasurys. The10-year Treasury yield fell to 2.458% from Wednesday's2.599%.

Dow drops 500 points

Gold settled down $7.30 to $1,659 an ounce after reachingas high as $1,684.90. Silver was off $2.33 to $39.43 anounce, a decline of 5.6%. Crude oil was down $5.30, or5.8%, to $86.63 a barrel, its lowest level since Feb. 18 asthe Egyptian revolution neared its climax. It had reached aslow as $86.04.

What started the blow-off?The supposed trigger was a weak report on initial joblessclaims. They were down 1,000 to 400,000. A week ago'sestimate of 398,000 was revised to 401,000.View more MSN videos

Go to Nightly News

The number raised the worries for Friday's nonfarm payrollsand unemployment report. The report, which will come outat 8:30 a.m. ET, is expected to show little change in theunemployment rate, which was 9.2% in June, and maybe a85,000 gain in nonfarm payrolls.But there were other big issues, including a move by theBank of Japan to push the yen lower against major

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E*TRADE: 60 Days Trade FreeU.S. markets closed

'RZSOXQJHVSRLQWVJDLQVDUHZLSHGRXW0DUNHW'LVSDWFKHV0610RQH\currencies, especially the dollar.In addition, European stocks plunged on worries that debtproblems for Greece, Portugal, Italy and Ireland were worsening. The European Central Bank unexpectedly beganlarge-scale intervention in the eurozone debt markets, the first time since March, buying bonds in an apparent attemptto prevent the region's sovereign debt crisis from engulfing Italy.The market tensions also set off a furious battle between investors wanting safety in Swiss francs and the Japanese yenand the central banks of those countries, which don't want their economies priced way too high.

Worst sell-off in over 2 yearsToday's sell-off was the worst for the major averages since Dec. 1, 2008. Very little was spared.General Motors (GM -4.34%, news)was down to $25.99 after second-quarter results beat estimates. But thecompany warned that the second half of 2011 may be lower than first-half profits. Ford Motor (F -6.78%, news)fell to$10.86.Mighty Apple (AAPL -3.87%, news)and Google (GOOG -3.93%, news)were off to $377.37 and $577.52, respectively.All 30 Dow stocks were lower. The best performer was Kraft Foods (KFT -1.52%, news), which dipped to $33.78.The company announced plans today to spin off its North American grocery business to shareholders, splitting theexisting company in two. The grocery business would consist of the company's U.S. beverages, cheese, convenientmeals and grocer segments and nonsnack items in its Canada and North American Food Service operations.Only 3 S&P 500 stocks were higher: Motorola Mobility (MMI +3.64%, news), Vulcan Materials (VMC +1.64%,news)and PG&E (PCG +0.42%, news).None of the Nasdaq-100 stocks was higher. The top performers were Sears (SHLD -0.71%, news)and Costco(COST -0.74%, news), down to $66.87 and $76.51, respectively.

Continued: Winners and losersSingle page

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1

batman2009

of 26

3 seconds ago

For anybody optimistic about how American business will do the right thing (or ever would have),please read Grapes of Wrath. Then come tell me how great business is, and how it is a good idea togive them every tax cut and financial break possible. Because they will do the right thing. It isdisgusting how stupid people choose to be, even when this has all happened before and has beendocumented.0

0

oscar97

34 seconds ago

obama said we need to tax people who have more money than they need "LIKE ME" well i don't hearhim say anything about paying some of those extra dollars that he doesn't need. president reaganwas the only president who voluntarily paid taxes while in office0

0

tao of wow

45 seconds ago

I disagree that pushing for a older retirement means you work in till you die. The Quality and length oflife has gone up. I do however think that there is exceptions for every case.0

0

batman2009

3 minutes ago

This is why you do not create business-friendly tax environments. Now our government is broke ANDto protect their profits, businesses still aren't hiring because the government is broke. The politiciansof America (on both sides) handed this country and its resources over to American business 30 yearsago. The fact that we only now see what we have become is irrelevant, Reagan ruined this country inthe 80s and everybody since him has done a good job of making it even worse. The only thingClinton did right was to raise taxes.0

1

terrible terr

3 minutes ago

W.C. Fields said it best ! ""Never Give a Sucker an Even Break"gives me goose bumps to know he was right !

KWWSPRQH\PVQFRPLQYHVWLQJGRZSOXPPHWVPDUNHWGLVSDWFKHVDVS[>$XJ30@

'RZSOXQJHVSRLQWVJDLQVDUHZLSHGRXW0DUNHW'LVSDWFKHV0610RQH\

1

0

Klaus Vonterinealis

4 minutes ago

Hyper inflation, here we come!!!1

0

Letterofmarque

4 minutes ago

DOW drops over 500 points. Happy Birthday, Mr. President! We need more of your keen insight andwisdom.

3

1

RENEE LOVE

5 minutes ago

Mred99-older retirement would mean working until you die, then social security would be irrelevant,but you've paid into all your life. Yeah push up the retirement age and take away the social securitytax!!! That's the only way I would agree to work past 65, unless you can guide me to the fountain ofyouth, one that actually works!!!!0

0

cragig

5 minutes ago

"investors worried that the U.S. economy may be slipping back into a recession"

We were actually out of a recession? I guess I must have missed something.

5

0

Wu was a Tiger

6 minutes ago

Mr President your a Failure. No Hope, No Compromise. Liberals are like Herpes, until the outbreakhappens again you for get how bad it is6

3

tao of wow

8 minutes ago

American people were doing just fine when the market was below 10,000.2

1

sasha_dobie

8 minutes ago

Just an aside here; It seems to me that a career is becoming more than just your working life, itseems that as a society we are heading back toward a time where it will be a you work until we tossdirt on you life. That is unless you are a member in the elite class of society.Also, I thought you might just like a little light classic reading, (Fahrenheit 451, (Ray Bradbury), OfMice and Men(John Steinbeck), 1984, (George Orwell)).

3

1

eddieboy111

9 minutes ago

If you think that our so called commander and chief is not responsible for this mess,YOUR NUTS.Youobviously know nothing about what is going on in this country.I am sure if something goes right forthis country you will want to give all the credit to him.But there is nothing thus far to give him credit forthat is positive for this country.He is the worst president ever and you just dont want to admit that you

KWWSPRQH\PVQFRPLQYHVWLQJGRZSOXPPHWVPDUNHWGLVSDWFKHVDVS[>$XJ30@

'RZSOXQJHVSRLQWVJDLQVDUHZLSHGRXW0DUNHW'LVSDWFKHV0610RQH\fell for his B.S. and voted for him.13

6

batman2009

10 minutes ago

Good. I hope the whole thing comes crashing down. Republicans want us to put our faith in privatebusinesses, and every hit the stock market takes is one step closer to Americans waking up andinvesting in their future, aka, the government. Obviously, the government is dumb enough to get tiedup in Wall Street's mess, but if it all collapsed overnight and we were no longer amazed by bigcorporations and big business, and we went back to smaller, more manageable businesses, I thinkthat would be a good thing. I don't even feel bad about this. The Republicans got what they wantedin the debt bill, and already we see the effects of weakening our government.6

7

work20

11 minutes ago

To all those idiots in this post who keep saying "The Govt. does not create jobs", the private sectordoes,...You retards deserve to lose your jobs if you have one right now,. 'coz the private sector NEVERcreated jobs since 2000, and will NOT, till the US worker agrees to work for 5 cents / hour. And youretards call this Capitalism ??

8

15

Tracy Mauro

13 minutes ago

Am I supposed to think we are going in the right direction as a country well I don't, Am i supposed tothink people and this country care about us any more well i don't, when all they do is take, take,take, from me and my family, this country has done nothing but take from us as civilians and we haveno more to give and no other place to go. So tell me if you have a better idea. We have no medicalsystem, a very weak education system, a very, very weak economy system ( no jobs). Where do i goand what do i do.

6

1

Klaus Vonterinealis

13 minutes ago

No equity in our homes now, $4.00 gas, high food and utilities, high healthcare, and now our 401k islosing a ton of money.

Yes We Can! Not!

11

3

RENEE LOVE

14 minutes ago

Why is the media so hell bent on trying to fool the average american into believing that we are in arecovery instead of recession headed towards depression??? The job market hasn't gotten better,prices for food are getting more and more ridiculous while the dollar's purchasing power is not worth anickel(4 cents to be exact). It pisses me off that they assume that we are all stupid and unpluggedfrom reality!!!12

2

southern home builder

14 minutes ago

JKR100I looked up 'historical budgets' at whitehouse.gov just like you said........................And NOTHINGthere was like you claimed. Sorry dude, you are wrong.As to your imaginary surplus........................Look up "national debt by year' click on the government

KWWSPRQH\PVQFRPLQYHVWLQJGRZSOXPPHWVPDUNHWGLVSDWFKHVDVS[>$XJ30@

'RZSOXQJHVSRLQWVJDLQVDUHZLSHGRXW0DUNHW'LVSDWFKHV0610RQH\(.gov) site and read the numbers for each and every year that clinton was president. You will see thatwe went further in debt each year..............ergo, no balanced budget, much less any surplus. (if thebudget was balanced we would have spent the same as what we took in, not gone further in debt. Ifttheree e hadad evere e beenbee a surplussusurplus,p us, thet e debt wouldou d havea e DECREASED!)CS)In a nutshellnutshell,uts e , thet eiimaginaryisurplusl was justj t likelik theth imaginaryiibalancedb ld budgetb d t SimplySi l a lieli toldt ld tot us byb clintonli tMore6

4

Klaus Vonterinealis

16 minutes ago

W2 You're an idiot.4

2

1

of 26

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The Hindu : Business / Markets : Sensex plummets over 387 point...

http://www.thehindu.com/business/markets/article2327627.ece

Business MarketsSensex plummets over 387 points to 14-month low on global worriesPTI

The Hindu Stockbrokers react as they monitor share prices during intra-day trade at a brokerage firm in Mumbai on Friday. Photo: PaulNoronha

The BSE benchmark Sensex plunged by over 387 points to hit nearly 14-month lows on major sell-off by funds, drivenby melting global markets amid fears over the U.S. economy moving towards recession.The Bombay Stock Exchange index, Sensex, plummeted by another 387.31 points, or 2.19 per cent to 17,305.87, thelevel last seen on June 10 last year.During the intra-day trade, the gauge had lost over 702 points to slip below 17,000 points to hit a low of 16,990.91points, a level last seen on May 14, last year.All the 13 sectoral indices recorded major losses with stocks of IT, metals, realty, financials, oil and gas and capitalgoods leading the fall.Broad-based National Stock Exchanges 50-share index Nifty nosedived by 120.55 points, or 2.26 per cent to 5,211.25.It had dipped below the psychosocial 5,200 points level to trade at 5,116.45 points at the outset of session.Sentiment on the domestic bourses turned distinctly weak largely in tandem with overnight slide on the US market onworries over a possible recession and European debt worries, triggering widespread selling by major players includingforeign funds.Market major Reliance Industries sank to a fresh 52-week low of Rs 778.55 before recovering partially to close at Rs791.65, still down by 2.57 per cent.Shares of State-run oil marketing companies Indian Oil, HPCL and BPCL recorded smart gains, despite huge lossessuffered by the overall market.Analysts said that stocks posted gains amid reports that the government was moving in direction of de-control of dieselprices.A weakening trend in crude oil in global market which would reduce the subsidy burden, also supported the upside inoil company stocks, they said.Among sectoral indices, the IT sector index suffered the most, losing 3.93 per cent to 5,459.02 as Tata ConsultancyServices dropped 3.66 per cent to Rs 1,056.70, while Infosys Technologies tanked 4.35 per cent to Rs 2,590.55.

1 of 2

05-Aug-2011 8:50 AM

The Hindu : Business / Markets : Sensex plummets over 387 point...

http://www.thehindu.com/business/markets/article2327627.ece

The realty sector index closed 3.13 per cent down at Rs 1,888.97 followed by the metal index that tumbled by 2.44 percent to 13,061.95 points, while the Bankex shed 1.67 per cent to 11,833.22 points..In the Asian region, Hong Kongs Hang Seng index sank 4.29 per cent while Japans Nikkei ended 3.72 per cent lowertoday. All the European markets were also trading in the red the opening trade on Friday.Keywords: BSE, sensex, closing trade, U.S. debt crisis, stocks crash

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05-Aug-2011 8:50 AM

S&P downgrades US credit rating from AAA - Yahoo! Finance

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S&P issues unprecedented downgrade of US credit rating, saying debt package falls short

Martin Crutsinger, AP Economics Writer, On Friday August 5, 2011, 11:55 pm EDT

WASHINGTON (AP) -- The United States has lost its sterling credit rating from Standard & Poor's.The credit rating agency on Friday lowered the nation's AAA rating for the first time since granting it in 1917. The move came less than a weekafter a gridlocked Congress finally agreed to spending cuts that would reduce the debt by more than $2 trillion -- a tumultuous process thatcontributed to convulsions in financial markets. The promised cuts were not enough to satisfy S&P.The drop in the rating by one notch to AA-plus was telegraphed as a possibility back in April. The three main credit agencies, which alsoinclude Moody's Investor Service and Fitch, had warned during the budget fight that if Congress did not cut spending far enough, the countryfaced a downgrade. Moody's said it was keeping its AAA rating on the nation's debt, but that it might still lower it.One of the biggest questions after the downgrade was what impact it would have on already nervous investors. While the downgrade was not asurprise, some selling is expected when stock trading resumes Monday morning. The Dow Jones industrial average fell 699 points this week,the biggest weekly point drop since October 2008."I think we will have a knee-jerk reaction on Monday," said Jack Ablin, chief investment officer at Harris Private Bank.But any losses might be short-lived. The threat of a downgrade is likely already reflected in the plunge in stocks this week, said HarveyNeiman, a portfolio manager of the Neiman Large Cap Value Fund."The market's already been shaken out," Neiman said. "It knew it was coming."One fear in the market has been that a downgrade would scare buyers away from U.S. debt. If that were to happen, the interest rate paid on U.S.bonds, notes and bills would have to rise to attract buyers. And that could lead to higher borrowing rates for consumers, since the rates onmortgages and other loans are pegged to the yield on Treasury securities.However, even without an AAA rating from S&P, U.S. debt is seen as one of the safest investments in the world. And investors clearly weren'tscared away this week. While stocks were plunging, investors were buying Treasurys and driving up their prices. The yield on the 10-yearTreasury note, which falls when the price rises, fell to a low of 2.39 percent on Thursday from 2.75 percent Monday.A study by JPMorgan Chase found that there has been a slight rise in rates when countries lost an AAA rating. In 1998, S&P lowered ratingsfor Belgium, Italy and Spain. A week later, their 10-year rates had barely moved.The government fought the downgrade. Administration sources familiar with the discussions said the S&P analysis was fundamentally flawed.They spoke on condition of anonymity because they weren't authorized to discuss the matter publicly. S&P had sent the administration a draftdocument in the early afternoon Friday and the administration, after examining the numbers, challenged the analysis.S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating furtherwithin the next two years. It said such a downgrade, to AA, would occur if the agency sees smaller reductions in spending than Congress andthe administration have agreed to make, higher interest rates or new fiscal pressures during this period.In its statement, S&P said that it had changed its view "of the difficulties of bridging the gulf between the political parties" over a credibledeficit reduction plan.S&P said it was now "pessimistic about the capacity of Congress and the administration to be able to leverage their agreement this week into abroader fiscal consolidation plan that stabilizes the government's debt dynamics anytime soon."One analyst suggested the downgrade might move Congress to take concrete steps to fix the nation's budget problems.

06-Aug-2011 1:03 AM

S&P downgrades US credit rating from AAA - Yahoo! Finance

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http://finance.yahoo.com/news/SampP-downgrades-US-credit-apf...

"It's a downgrade and it's bad, but if it spurs more conversation about bringing down spending and maybe more intelligent tax policy, it couldbe a good thing in the long run," said Frank Barbera, a portfolio manager of the Sierra Core Retirement Fund.The Federal Reserve and other U.S. regulators said in a joint statement that S&P's action should not have any impact on how banks and otherfinancial institutions assess the riskiness of Treasurys or other securities guaranteed by the U.S. government. The statement was issued to makesure banks did not feel that the downgrade would affect the amount of capital that regulators require the banks to hold against possible losses.Before leaving for a weekend at Camp David, President Barack Obama met with Treasury Secretary Timothy Geithner in the Oval Office lateFriday afternoon.The downgrade is likely to have little to no impact on how the United States finances its borrowing, through the sale of Treasury bonds, billsand notes. This week's buying proves that."Investors have voted and are saying the U.S. is going to pay them," said Mark Zandi, chief economist of Moody's Analytics. "U.S. Treasurysare still the gold standard." He noted that neither his parent organization, Moody's, nor Fitch, the other of the three major rating agencies, havedowngraded U.S. debt.The ratings agencies were sharply criticized after the financial crisis in 2008 for not warning investors about the risks of subprime mortgages.Those mortgages were packaged as securities and sold to investors who lost billions of dollars when the loans went bad.Japan had its ratings cut a decade ago to AA, and it didn't have much lasting impact. The credit ratings of both Canada and Australia have alsobeen downgraded over time, without much lasting damage."I don't think it's going to amount to a lot," said Peter Morici, a University of Maryland business economist.Still, he said, "The United States deserves to have this happen," because of its clumsy handling of fiscal policy.In reacting to the downgrade, Democrats and Republicans continued to blame each other and pledged to hold firm to their principles.Republican presidential candidates criticized the White House. Rep. Michele Bachmann, R-Minn., called on Obama to fire Treasury SecretaryTimothy Geithner and submit a plan to balance the budget and not just reduce future deficits. Republican candidate Mitt Romney, formergovernor of Massachusetts, said the credit downgrade was the "latest casualty" in Obama's failed economic leadership.House Democratic Leader Nancy Pelosi said the American people will be closely watching the work of the 12-member joint committee that hasbeen created to produce more than $1 trillion in additional savings over the next decade."The work of this committee will affect all Americans, and its deliberations should be open to the press, to the public and webcast," she said.Senate Democratic Leader Harry Reid said the downgrade underscored the need for a "balanced approach to deficit reduction that combinesspending cuts with revenue-raising measures" such as doing away with tax breaks for the wealthy and oil companies.AP reporters Tom Raum, David Espo and Julie Pace in Washington and Business Writers Chip Cutter and Pallavi Gogoi in New Yorkcontributed to this report.Follow Yahoo! Finance on Twitter; become a fan on

Facebook.

06-Aug-2011 1:03 AM

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U.S. Loses AAA Credit Rating from S&P

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By Adam SamsonPublished August 05, 2011 | FOXBusinessPrint

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For the first time in history, Standard & Poor's cutAmerica's top-notch credit rating one notch to AAplus from AAA on Friday night.

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The move comes less than a week after Congressand the Obama Administration crafted a last-minutedeal to reduce burgeoning government spendingand increase the debt ceiling, narrowly averting acatastrophic default on U.S. sovereign debt.

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The ratings company, which had previously warnedthat a downgrade was possible, cited both political and fiscal concerns in making its decision."The downgrade reflects our opinion that the fiscal consolidation plan that Congress and theAdministration recently agreed to falls short of what ... would be necessary to stabilize the government'smedium-term debt dynamics," S&P said in a statement.Indeed, a scoring by the Congressional Budget Office said the bill that President Barack Obama signedinto law on Aug. 2 would save roughly $2.1 trillion over the next decade -- far short of the $4 trillion "downpayment" S&P had previously called for.The heated debate on Capitol Hill and in the halls of the White House stalled repeatedly during months ofnegotiations, leading S&P to question the "effectiveness, stability, and predictability of Americanpolicymaking."The ratings company said its long-term outlook is negative, noting it may reduce the rating another notchover the next two years if spending cuts fall short of expectations, interest rates increase, or if the publicdebt climbs more quickly than forecast.Moody's Investor Service affirmed the country's pristine rating, while Fitch is still performing a review that itplans to complete by the end of the month.

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Time to Buy Stocks?Markets

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Ratings company Standard & Poor'sdowngraded the country's credit ratingfrom a top AAA rating to AA+ onconcerns about the government's budget

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Confessions of a Rookie:Theft, Foolishness, and aGreat CompanyWhy Littelfuse May BeAbout to Take Off

Glenn Hubbard: Tax5 money moves oneReform Could be Next for recession believer isColleges That Help Grads Dysfunctional Washington makingGet Top SalariesThe Government CantThe 5 cheapest U.S.3 Mutual Funds ThatSave the Market Thiscities for a summerTake Their TimeTimevacation

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10 of This Week's Biggest The Nine Foods TheLosersGovernment Is PayingFor You To Eat5 Things To Watch NextWeek: Murdoch Mania,The Countries With TheGaming, Soda Wars and Fastest GrowingMorePopulations

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