View Full Version : Dow Jones dropped by over 400 points at mid-day
It appears concerns about the world economy are shaking nerves in Wall Street - the Dow Jones average was down over 400 points earlier today.
As I type this the slide seems to be continuing - the market is down over 473 points. :(
rd3311
08-04-2011, 12:58 PM
Can you say October 1987?
It looks like the market finished on the lows of the day and closed down 512 points.
There seem to be a lot of news reports predicting a "double-dip" recession. I was never convinced the economy emerged from the first recession. :confused:
steve_biegler
08-04-2011, 01:36 PM
I hope tomorrow isn't a bloodbath!
jayhawk
08-04-2011, 02:52 PM
ANY MFGR. PUSHING FOR FACILITY REHABS IN THIS BUSINESS CLIMATE IS JUST NUTS !! theyr'e supposed to have economists on board, what do they read?? our PARTNERS should have been preaching facility expense restraint, not demanding upgrades no prudent business person would choose to do at this time. just wish i had more stop losses in place.
Txflyer
08-04-2011, 04:58 PM
Wish I had gone with my gut and sold off the stocks again about 2 months ago. The only investment that's done worth a crap for me in the past several years is Au.
SHACOS
08-04-2011, 05:25 PM
In my new work world at CH2M HILL, business is picking up. Problem is, it's internationally, specifically Brazil and Canada. Anyone want to start a dealership in Brazil with me? ;)
The StraightShooter
08-04-2011, 05:43 PM
I'm moving to Chile.
I hope tomorrow isn't a bloodbath!
The Dow was down by 240 points at one point in the day but managed to ralley and finished up 60 points.
ANY MFGR. PUSHING FOR FACILITY REHABS IN THIS BUSINESS CLIMATE IS JUST NUTS !! theyr'e supposed to have economists on board, what do they read?? our PARTNERS should have been preaching facility expense restraint, not demanding upgrades no prudent business person would choose to do at this time. just wish i had more stop losses in place.
I totally agree with your point.
Additionally, I get the impression that a lot of the OEMs are putting pressure on their dealers to upgrade facitlities - especially Lincoln/Mercury stores who are getting pressure to upgrade or terminate.
I wonder how many of the Toyota and Lexus Superstores are losing money today because they built $10 - $20 Million facilities during the good times? (The photo of the Lexus dealership that's on the DealershipForum header is of a $20 Million Lexus store in Bellevue, WA owned by a former NFL Football Player.)
The only investment that's done worth a crap for me in the past several years is Au.
It took me awhile before I remembered what Au was - but I managed to figure it out with out looking it up on Google. (It was a flashback to the Periodic Table in High School Physics that solved the mystery....)
Based on what I've read gold will continue to perform well as the U.S. is forced to print money and permit inflation as a means of dealing with our enormous debt problem. :(
Anyone want to start a dealership in Brazil with me? ;)
That would be awesome. Warm weather, coastal access, beautiful women and a growing economy. Maybe you can open up a BMW store in Brazil? :)
SHACOS
08-05-2011, 05:58 PM
Serious question, does BMW make engines that run on ethanol? That's all they have down in Brazil.
Txflyer
08-05-2011, 08:00 PM
Monday should be fun, with the S&P downgrade of the USA's credit rating. :(
possum
08-06-2011, 06:06 AM
I've held on, and now, cannot afford to sell. Just ride it out. Bank of America got so cheap at $9.12 I just got impulsive and bought in....then it fell to $8.77. Friday I went to the Manheim Auction, but before I left I put in another "buy" if it hits $8.01. It hit as low as $8.03, so I missed another "opportunity", and now Monday it will go into the $7 range, I think.
Serious question, does BMW make engines that run on ethanol? That's all they have down in Brazil.
I'm not 100% sure but I know BMW sells cars in Brazil so I'm guessing they've adapted them to run on ethanol.
I remember when Chrysler first started offering vehicles that would run on any combination of ethanol/gas up to E85 - the engines didn't require any significant changes. The primary change was the addition of a sensor that could detect the percentage of ethanol in the fuel and upgraded fuel lines to deal with the corrosive properties of ethanol.
Monday should be fun, with the S&P downgrade of the USA's credit rating. :(
You called that one correctly. :(
The Dow Jones if off by about 400 points as I type this and the NASDAQ is getting hit even harder in perrcentage terms.
No worries though, the President says America is still a AAA country. :facepalm:
birch3x
08-08-2011, 12:23 PM
Hello, 401k.....hello?...hello?.....where have you gone?
I've held on, and now, cannot afford to sell. Just ride it out. Bank of America got so cheap at $9.12 I just got impulsive and bought in....then it fell to $8.77. Friday I went to the Manheim Auction, but before I left I put in another "buy" if it hits $8.01. It hit as low as $8.03, so I missed another "opportunity", and now Monday it will go into the $7 range, I think.
Holy smokes, I bet you're happy your buy order didn't trigger for $8.01 on Friday - Bank of America closed today at $6.51 down $1.66. (That's a 20% loss in a single day.)
If last week wasn't bad enough the market fell an additional 634 points today - the worse decline since the credit crisis of 2008.
I've read some interesting reports that S&P may have actually botched their analysis when they downgraded the U.S. debt but they've refused to change their debt rating. (It's alleged they made a $2 Trillion error when estimating the future levels of the national debt.)
Regardless, the decline in the stock market is real and the "fear factor" is on the climb again. That's not good news for the car market.... :(
possum
08-08-2011, 05:05 PM
Its scary, but this is also when some people will make some money. If you ever wanted to buy an expensive stock, this is your time. It will come back, and there is money to make.
SHACOS
08-08-2011, 06:35 PM
The best advice I ever heard from a old car guy. Money is only lost if you sell. I think it applies to days like today perfectly.
SHACOS
08-08-2011, 06:40 PM
Ouch! I just looked at my 401K. I lost $2,000 in a week! Screw you S&P.
Its scary, but this is also when some people will make some money. If you ever wanted to buy an expensive stock, this is your time. It will come back, and there is money to make.
Very wise words indeed.
Bank of America's stock was up $1.09 today - an increase of almost 17%.
Ouch! I just looked at my 401K. I lost $2,000 in a week! Screw you S&P.
I thought you were saying it didn't matter as long as you weren't selling.... :rolleyes:
On a side note, I agree with the "Screw you S&P" comment. As I've stated before if Moody's and S&P had been doing their jobs the whole real estate bubble and collapse would have never happened.
Needhelp
08-10-2011, 06:33 AM
On a side note, I agree with the "Screw you S&P" comment. As I've stated before if Moody's and S&P had been doing their jobs the whole real estate bubble and collapse would have never happened.
TRUE DAT!
It's going to be another wild ride today!!!!
crowe
08-10-2011, 10:57 AM
The stock market predicted 9 recessions & we’ve only had 5.
The price has fallen on profitable companies that have more cash than debt.
The average stock buyers buys at the high & sells at the low.
Good fundamentals coupled w/ a decent timeline will still make money.
steve_biegler
08-10-2011, 03:40 PM
Down 530 today......ouch! Rollercoasters make me sick:eww:
possum
08-10-2011, 05:53 PM
My only regret is the limited monies I have to buy with right now! This "correction" will pay off down the road, and if it doesn't, we are in more than economic trouble.
The stock market predicted 9 recessions & we’ve only had 5.
The price has fallen on profitable companies that have more cash than debt.
The average stock buyers buys at the high & sells at the low.
Good fundamentals coupled w/ a decent timeline will still make money.
Great comments - I just read a story suggesting the stock market is pricing in another recession but it's unclear whether it will actually happen. It fits with your 9 and 5 comment.
Down 530 today......ouch! Rollercoasters make me sick:eww:
Well, the rollercoaster ride continues - this morning the market's on its way up. :)
The market's up 154 points as I type this post.....
My only regret is the limited monies I have to buy with right now! This "correction" will pay off down the road, and if it doesn't, we are in more than economic trouble.
I agree. Some stocks (like Bank of America) have sold off so much over the past week it's hard to imagine they won't recover in a relatively short time.
When the market drops hard and a stock sells off like we've watched over the past week I wonder how much of the selling is being generated by people facing "margin calls" who don't have the ability to ride out the storm?
Well, the rollercoaster ride continues - this morning the market's on its way up. :)
The market's up 154 points as I type this post.....
Well, when the market closed the roller coaster was on a peak - up 423 points for the day. I wonder what will happen tomorrow?
On a side note, four European countries (France, Italy, Spain and Belgium) are banning the practice of "short selling" select stocks in an effort to stabilize their markets.
crowe
08-16-2011, 10:21 AM
Margin Calls
http://www.bloomberg.com/news/2011-08-15/margin-calls-push-stock-leverage-down-most-in-year-as-s-p-500-tumbles-12-.html
Margin Calls
http://www.bloomberg.com/news/2011-08-15/margin-calls-push-stock-leverage-down-most-in-year-as-s-p-500-tumbles-12-.html
Interesting article - thanks for posting it. :)
As someone who has been on the receiving end of a Margin Call there's nothing worse then being forced to sell at the market lows even though you're convinced the stock you were betting on has long term potential.
On a different note, I thought the comments from Warren Buffet were very positive. I remember he initially predicted the recession would be deeper and last longer than almost all the other experts and he was 100% correct. It's good to hear that he doesn't think the country's headed for a double-dip recession.
It looks like the stock market's headed for another roller coaster ride - the Dow Jones is down over 400 points as I type this post. It appears that worries about Europe's debts and the risk of a double-dip recession are creating havok in the market.
On a plus note, gold's at a record high - over $1800 per ounce.
Txflyer
08-18-2011, 04:07 PM
On a plus note, gold's at a record high - over $1800 per ounce.
. . . . . and I wouldn't be shocked to see $2000 before the first snow hits.
. . . . . and I wouldn't be shocked to see $2000 before the first snow hits.
I agree.
While I've never been a "gold bug" I do see why investors would seek the safely of a hard asset given the instability in the markets and the realistic fear that the U.S. will have to resort to an inflationary economy to deal with the National Debt.
Txflyer
08-19-2011, 07:15 PM
I agree.
While I've never been a "gold bug" I do see why investors would seek the safely of a hard asset given the instability in the markets and the realistic fear that the U.S. will have to resort to an inflationary economy to deal with the National Debt.
I agree. I'd never been a bug either, but saw the handwriting on the wall back in 2007. Just wish I'd trusted my gut and bought a lot deeper.
It was nice to see the markets moving up today. :)
The Dow Jones closed up 322 points and even more impressive, the NASDAQ was up 100 points - a 4.29% advance in one day.
Hopefully there will be a string of positive days to repair the damage that's been done over the past month or so.
The Dow Jones is down 325 points as I type this post.
Part of me wonders if people fear a terrorist event over the weekend to coincide with the tenth anniversary of 9/11. If so, I'm betting Monday will be an up day with a "relief rally."
JoeRocket
09-09-2011, 11:47 AM
Part of me wonders if people fear a terrorist event over the weekend to coincide with the tenth anniversary of 9/11.
What does the other part of you wonder? Can I guess?
What does the other part of you wonder? Can I guess?
Sure, I'm not even certain what the other part of me thinks - I'd love to hear your thoughts. :)
57years
09-09-2011, 01:36 PM
I've heard the "up side" activity referred to as a "suckers rally." I can't get over the 5% dividend quality stocks selling off will all the rest. Rumor this morning that Greece would default on bonds over the week-end, then the cascade of Spain, Portugal, Ireland, and Italy will begin. There is only 2 things (before November 2012's change of Presidential Party) that I can see will start a long term rally: Repeal of Obamacare or de-regulation of domestic oil production (coupled with moving at least one major refinery up the Mississippi to Cairo environs with inland pipeline from coast) .
I've heard the "up side" activity referred to as a "suckers rally." I can't get over the 5% dividend quality stocks selling off will all the rest. Rumor this morning that Greece would default on bonds over the week-end, then the cascade of Spain, Portugal, Ireland, and Italy will begin. There is only 2 things (before November 2012's change of Presidential Party) that I can see will start a long term rally: Repeal of Obamacare or de-regulation of domestic oil production (coupled with moving at least one major refinery up the Mississippi to Cairo environs with inland pipeline from coast) .
It will be interesting to watch how the market moves forward from here. I've read other reports that examine October's history of being a tough month for the market and they predict we'll re-test the lows.
Concerning a repeal of Obamacare and new domestic oil production, I wouldn't hold your breath. :(
Concerning a repeal of Obamacare and new domestic oil production, I wouldn't hold your breath. :(
While I'm no expert, I think the recent ruling that it's Unconstitutional to force Americans to pay for their own health insurance will stall Obamacare long enough to let the public decide what they want in 2012.
57years
09-12-2011, 06:27 AM
I don't disagree the actions I have suggested will be hard to do by the Senate or by the consititutional executive. I have hope for the USA. At this point, reelection for the executive is not dependent upon the democrats (liberals wing) as they have nowhere else to go. A change of policy on oil or healthcare is a throw-away, he can do which will enhance his potential from the independent voter who is currently going to abandon his party. Frankly, I see no other option for his re-election, except the Repubicans choosing a weak candidate who will not appeal to the middle, and thus give them no where else to go! By the way, I have no suggestions of who the right person is--YET!
Part of me wonders if people fear a terrorist event over the weekend to coincide with the tenth anniversary of 9/11. If so, I'm betting Monday will be an up day with a "relief rally."
The Dow is down by about 60 points - so much for my "relief rally." Then again, the market hasn't closed yet - it may still go positive. :)
The Dow is down by about 60 points - so much for my "relief rally." Then again, the market hasn't closed yet - it may still go positive. :)
The market closed up 68 points - too bad I didn't have any money on that call. :rolleyes:
The roller coaster ride continues and it seems the current sell-off was triggered by comments by the Federal Reserve signaling that the U.S. economy faces "significant downside risks" and the lingering concerns about the EU debt crisis.
Hell, it's not even October yet - that's supposed to be the month that historically has the biggest drop-offs.
The Dow Jones is down 419 as I type - it will be interesting to see where it settles at market close.
John Schutz
09-23-2011, 12:34 PM
Gambling are we/ I gamble every morning when I turn the key!
Gambling are we/ I gamble every morning when I turn the key!
I do enjoy following the stock market. Although I think the market is vulnerable to manipulation that favors the hedge funds and institutional traders I still believe there are opportunities for individual investors.
That said, almost 100% of my skepticism for CEOs and top management stems from losses I've incurred in the stock market. I've been burned by trusting that what a CEO said is reflective of what was actually happening at his company.
Txflyer
09-25-2011, 09:03 PM
That said, almost 100% of my skepticism for CEOs and top management stems from losses I've incurred in the stock market. I've been burned by trusting that what a CEO said is reflective of what was actually happening at his company.
Jim Press anyone?
Jim Press anyone?
Damn, that's "Quote of the Week" material and it's still only Sunday night. :)
On a side note, I've been meaning to add a post to the latest Jim Press thread. I noticed someone from Toyota's Corporate Office in Southern California was reading it last week and I thought I should clarify that at one point I was 100% behind Jim Press.
If it sounds like the members here are angry with Press it's not because he started with that reputation - he EARNED the reputation he has with CJDR dealers. :mad:
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