the Way, with No Spending Cuts
By Nicholas Stix
The John Doe calling himself “Barack (Hussein) Obama II” is bathing in a glorious 50th birthday today. He got his way with the Republican-majority House, and as a result the Dow is way down, and soon taxes will be shooting skyward, as part of the plan he revealed during his presidential campaign, and which he has consistently followed ever since, to bleed white America dry, and give the money to racist, incompetent, crooked blacks, Hispanics, and even South Asians.
Stocks Dive 3%, Dow Plunges 300; Vix Soars
Published: Thursday, 4 Aug 2011 | 12:06 PM ET
By: JeeYeon Park
CNBC.com Writer
Stocks accelerated their selloff across the board in another volatile session Thursday as fears over a global economic slowdown intensified and ahead of the widely-followed monthly unemployment report….
The Dow Jones Industrial Average plummeted sharply, led by Caterpillar and Alcoa, after rebounding from a deep selloff in the previous session to snap an eight-day losing streak. The blue-chip index is down for the 9th day in 10.
The S&P 500 and the tech-heavy Nasdaq also tumbled. The S&P hit its correction territory of 1,227 as it plunged 10 percent from its intrady high in May.
All three major indices are seeing their biggest one-day drop in nearly a year.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, surged almost 15 percent to trade above 26.
All 10 S&P sectors were trading lower, led by energy, materials and industrials.
“You’re at critical levels here—the Dow has marginally broken through yesterday’s low and the S&P has yet to do that,” Art Cashin, director of floor operations at UBS Financial Services told CNBC. “If they break through noticeably, then we could be in for further selling.”
“[Gold’s gain] is a clear sign of international fear and that’s been directing this market,” Cashin added. “The fact that we’re getting the heavy volume indicates that we might be getting some selling from offshore—people who can’t raise money in Europe might be trying to raise it over here.”
Gold prices soared again, surging above $1,680 an ounce amid the ongoing uncertainty.
European shares turned lower to hit an 11-month low. The Bank of England and European Central Bank both left rates unchanged, although investors were watching for any indication from the ECB that it will be willing to buy Spanish and Italian debt after the rise in Italian and Spanish bond yields in recent days.
Meanwhile, The ECB signaled it was buying government bonds in response to a deepening European debt crisis.
"It is true that we are experiencing a high level of uncertainty, not just in the euro zone," said ECB President Jean-Claude Trichet, adding that "downside risks may have intensified."
Weekly jobless claims were little changed last week, edging down 1,000 to a seasonally adjusted 400,000, according to the Labor Department. Economists had forecast claims rising to 405,000, according to a Reuters poll.
“The jobless claims number was not encouraging … we need to see more of a significant improvement than the data just squeaking by,” said Doreen Mogavero, president and CEO of Mogavero Lee & Company.
The claims news comes ahead of Friday's government non-farm payroll data, which likely increased 85,000 last month, according to a Reuters survey, after rising only 18,000 in June. The unemployment rate is expected to hold steady at 9.2 percent.
“We’ve reduced our equity exposure by half at the end of the second quarter,” said Rob Stein, portfolio manager and senior economist of Astor Asset Management. “We’ll need to see the economic data stabilize.”
Adding to day's woes, JPMorgan cut its third-quarter U.S. economic growth forecast by 1 percent, pointing to recent developments in the U.S. economy. The firm added that it doesn't expect the Fed to raise interest rates until at least 2013.
The dollar soared against a basket of currencies. The greenback's surge came amid a weakening economic outlook and moves by Japan to intervene in the forex market to bolster the yen.
Bank of NY Mellon announced it will start charging "large depositors" to hold cash due to a sudden increase in dollar deposits prompted by fears among its customers.
Among earnings, GM fell even after after the automaker posted earnings that nearly doubled, as the firm a larger share of sales globally and raised prices on its vehicles.
Kraft Foods was the only Dow component to trade higher after the food manufacturer earnings beat estimates, raised its guidance and announced it will split in two.
AIG and Sunoco are expected to post earnings after-the-bell tonight.
U.S. warehouse club operator Costco posted a better-than-expected chain-store sales, helped by higher gas prices and strengthening foreign currencies. Teen-oriented chains Hot Topic and Wet Seal blew past estimates, but rival Zumiez missed expectations.
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