US stocks drop, reversing the morning’s sharp gains, as itchy investors sell, the dollar rebounds and crude falls. DJIA loses 104 (1%) to 9868, its first back-to-back 100-point loss sessions since June; S&P 500 falls 13 (1.2%) to 1067, Nasdaq Comp drops 13 (0.6%) to 2142. Dollar rises, and crude falls below $79/barrel.
Financials, materials lead decliners.Verizon posts steep drop in earnings, as does RadioShack, although shares of the latter rise sharply.
You’re going to start hearing more people wondering if a top is in; of course, they (us included) have been wondering that since June.
It was a weird day. Stocks started off strong. But late in the morning they just nose-dived. John said it looked like a plan that took that couldn’t maintain altitude. There were conflicting reasons for the drop as well. Some argued it was the Journal’s story about Bank of America, and how much capital they’ll need to have before the government lets them pay back their TARP loan. Some thought it was stories about whether or not the home-buyer tax credit would get extended.
But it’s certainly no coincidence that the dollar rebounded, and stock and crude both fell. The dollar index jumped 0.8%, and it started rising late in the morning before making its big move.
No, nothing is quite so easy, but it sure seems that way these days.