Recession fears slam Wall Street

[seemslikeadream]

http://money.cnn.com/2009/02/17/markets/stockswatch/?postversion=2009021709

NEW YORK (CNNMoney.com) -- Stocks slumped Tuesday morning as financial shares sold off amid worries that the recession is worsening, even as President Obama prepares to sign into law the $787 billion economic stimulus plan.

The Dow Jones industrial average (INDU) fell 210 points, or about 2.7% in the early going.

The Standard & Poor's 500 (SPX) index lost 28 points, or about 3.4%. The Nasdaq composite (COMP) lost 47 points, or about 3.1%.

U.S. markets were closed Monday in observance of Presidents Day.

Peter Cardillo, chief market economist for Avalon Partners, said uneasiness over the stimulus package is the prime suspect.

"I guess there's a lot of second thoughts about the stimulus package from the public," said Cardillo before the markets opened. "Obviously, there's a lot of fear out there, and that fear factor continue to weigh "

Global markets on Tuesday were lower, with declines in the Asian and European indexes




http://www.marketwatch.com/news/story/bank-worries-send-euro-10-week/story.aspx?guid=%7B015667D0-364E-4E8F-9AA7-F1FA04E93E9E%7D&dist=msr_14

Euro sinks on Eastern European worries

Repatriation gives dollar continued lift

By William L. Watts & Deborah Levine, MarketWatch

Last update: 10:00 a.m. EST Feb. 17, 2009Comments: 2NEW YORK (MarketWatch) -- The European single currency dropped to a 10-week low versus a broadly stronger U.S. dollar Tuesday, after Moody's Investors Service warned that euro-zone banks are highly exposed to financial turmoil in Eastern Europe.
"East European countries have now entered a deep and long economic downturn, thus exposing West European banks' claims on East European institutions," the rating agency said in a report released overnight.
Austria, Italy, France, Belgium and Germany are among euro-zone countries with banks heavily exposed to Eastern European difficulties, the report said. Outside the euro zone, Sweden is also heavily exposed. See full story.
"We continue to find the actions of various ratings agencies are providing us with ever more reasons to avoid the euro," said Simon Derrick, currency strategist at Bank of New York Mellon.
The Moody's report sent European financial shares sliding, weighing down European stock indexes. U.S. stocks opened weaker, with the Dow Jones Industrial Average (INDU:INDU
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The single currency trimmed losses but remained substantially lower after a monthly survey of German investors showed a stronger-than-expected rise in economic expectations.
The euro was 1.5% lower versus the dollar at $1.2614 in recent action after sliding as low as $1.2600 - its lowest level since early December.

[MarjorieG]

1. Unease with stimulus? How about gambling on market not first priority.

People need to stop looking at the markets, and day to day response as indicator. Maybe Wall Street's behavior gives us pause.

Today I'm hearing about all the economists who don't want any stimulus. How many, really, versus many conservative types who agreed with the stimulus.

[marketcrazy1]

3. todays market action

seems more related to an overnight currency dislocation that began in Asia late last night and caused a huge flight into the dollar. no news that i have seen on what might have caused this but since the market is down they want to spin this as a reaction to the stimulus bill.

[sandnsea]

5. Along with the Eastern Europe info

posted in the article above.

I don't know who Cardillo is, but he/she should be fired. Anybody who blames the stimulus package when economies are collapsing around the globe, should be fired.

One of these days I will find the article about the lack of transparency in Malaysia or some other Asian country, that contributed to their economic collapse. It was warning the US that the same thing could happen here and that the press needed to stop playing politics and start telling the truth again. They still don't get it.

[AndyA]

2. Democratic leaders, I CAN'T HEAR YOU!

I am hearing about how the recession is growing, and deepening by the day.

I am hearing how Obama's stimulus isn't working, even before it's been signed.

I am hearing that the market is reacting to the stimulus, before it's enacted.

What I am NOT hearing, from every Democratic leader, is that it took 8 years under Republican control, 8 years under pResident Bush, to get the economy in this mess. And it's not going to turn around overnight.

Where are you, Dem leaders? The message America needs to hear isn't being spoken loud enough to make an impact, but the GOP's message is out there LOUD AND CLEAR.

[Andy823]

6. I agree.

Republicans are out in full force trying to paint things with their "doom and gloom" brush, and democrats seem to be doing nothing! I agree with you, they need to get off their lazy butts and get out there and make sure that the public does not forget who got us into this mess, and who is doing their best to keep us in this mess for political gains in 2010! The media is doing everything they can to help the republicans, and they love the "doom and gloom" scenario, helps their ratings!

[xiamiam]

7. they need to buy a news network...other than that..out of luck..nt

[nc4bo]

4. Sinking like a lead weight now

but there'll be an *amazing* rally between 3-4pm, like usual and M$M will say WS reacted to the signing of the stimulus bill or whatever nonsense they can pull out of their butts.

I'm so sick and tired of hearing about WS's woes, what about the Main Street people?

The more we scream, the less we're heard it seems.

[opihimoimoi]

9. 7600 range...holding.....

[Soylent Brice]

8. as it has been pointed out before here on DU...

wall street never likes anything that is good for main street.

the bill is close to signing, hence another drop.

to me it says we're on the right track. the stock market will recover right along with the rest of us.