|Stocks See Second 200+ Drop In Three Days, Reflecting Continued Concern Over Global Economy And US Company Earnings|
|Wednesday, October 24, 2012 03:52|
Prices of stocks and commodities plummeted Tuesday October 23 as Dupont and 3M reported lackluster earnings and sent investors running back to the Treasury market to hide.
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The Dow Jones Industrial Average (DJIA) experienced its second 200+-point drop in three days, eerily on the heels of the 25th anniversary of October 19, 1987. The Dow fell 205 points on Friday the 19th and 243.36 points Tuesday the 23rd.
No sector was left unscathed. Energy stocks slumped over 2%. Materials stocks, which are sensitive to economic growth, fell 3% on the S&P 500.
Concerns about earnings weighed down the markets as global demand continues to weaken.
The disappointing earnings picture highlights the fact that the global economy remains fragile.
The MSCI All-Country World Index fell 1.5% and lost over 2.8% over the past three sessions.
The MSCI Emerging Markets Index fell 1% and the Shanghai Composite Index fell .9%, it’s largest loss in almost three weeks.
The Federal Reserve Bank of Richmond reported a mixed picture on factory activity, saying manufacturing contracted this month but not as much as last month.
Spain’s economy contracted during the last quarter, delivering a stomach punch to the markets.
Spain’s central bank reiterated its warning that lower tax revenue collections may cause the country to miss its budget targets for 2012.
Front-month crude oil futures fell 2.3% over concerns about weakening demand across the globe. Stocks on the NYSE fell after Europe’s Stoxx 600 tumbled over Spain’s disappointing economic report.