US stocks slide again after partial recovery

US stocks are on the way down again after a partial recovery mid-week. By mid Friday they are down over a percent on the Dow Jones index, after a large slump on Thursday of 4.15% on the Dow Jones, 3.8% on S&P and 4.2% on the Nasdaq.

This follows a drop last Friday, a record slump on Monday followed by a partial recovery on Tuesday and Wednesday.

The US market looks headed for it’s worst week in nine years, when the worst financial crisis since the Great Depression hit.

The Dow Jones index over the last three months:

This brings stocks down to the level they were at three months ago, but a drop of 10% is classed as a ‘correction’, and the persistence of this drop and it’s suddenness will be causing some concerns.

Reuters: Wall Street slips into correction territory

U.S. stock indexes slipped into correction territory again with a drop of more than more than 1 percent on Friday, as soaring volatility continued to spook investors.

The three indexes are now more than 10 percent below their record highs hit on Jan. 26.

New Zealand’s NZX 50 was down 1% yesterday so hasn’t been dragged as low, yet. And now the NZX is closed for the weekend it may give some more respite here.

 

 

 

 

23 Comments

  1. David

     /  February 10, 2018

    DXD and SPXS , one can make money whichever way the index goes. Or the VIX or UVXY for the truly brave.

    • Blazer

       /  February 10, 2018

      it must be something about ‘Davids’…that rare clairvoyancy about markets,that winning edge they possess,while mere mortals….just wait for…the wonder of Wall St algorithm pump and…dump.

      • Joe Bloggs

         /  February 10, 2018

        Pity is, this David’s all mouth and trousers – the VIX he refers to is the CBOE’s volatility index, not a trading note. I suspect he’s grasping for the TVIX leveraged fund (VelocityShares Daily 2x VIX Short-Term ETN) … which is why I don’t listen to his blather…

        Just like trump might come to regret tethering his success to the stock market.

        • David

           /  February 10, 2018

          And here I am surprisingly succesful Joe Bloggs so guess its probably just blind luck. Imagine if I was half as clever as you…the sky would be the limit.

          • Blazer

             /  February 10, 2018

            if you are surprised at your…’success’….can we attribute it to….dumb luck,or other ..factors.

            • Kitty Catkin

               /  February 10, 2018

              Your lack thereof is probably because you appear to think that anyone who succeeds must be lucky or crooked.

            • David

               /  February 10, 2018

              It’s the only way he can deal with his own failure.

            • Blazer

               /  February 10, 2018

              what failure ,would that be..then?

    • david in aus

       /  February 11, 2018

      Timing is really tough. Most people wouldn’t have the knack for it. Most people should leave it alone. Trading is a bit like gambling in my opinion. Don’t risk more money than you can afford to lose. It is really hard to make money on falling markets, on average most will probably lose more often than win. Better to improve your knowledge and know how to value companies.

      • Blazer

         /  February 11, 2018

        Something cogent there David.Compliance with what regulations there are is appalling in NZ.Most IPO’s are way over valued and the directors market announcements are rubbish.Feltex,Dick Smith,Wynyard a few that come to..mind.Plenty on life support on the NZX at the moment too.

  2. Blazer

     /  February 10, 2018

    its all a conspiracy…
    ‘https://www.cnbc.com/2017/03/03/banks-have-paid-321-billion-in-fines-since-the-crisis.html

  3. Chuck Bird

     /  February 10, 2018

    The Dow is up and down like a whores drawers today as has been the case for the last week or so. It is up at the moment almost 2%.

    • PartisanZ

       /  February 10, 2018

      That’s a excellent analogy for corporate-capitalism Chuck … Well done!

      Although I’d have said Whore-mongers or Pimps …

      They make prostitutes of us all …

      • Kitty Catkin

         /  February 10, 2018

        I haven’t heard that expression for ages-it’s a variation on ‘up and down like a tart’s knickers’, which is the one I usually use. Or would if I used such expressions. 😀 I used to work with someone who used the whore’s drawers’ one. .

        I have heard of prostitutes advertising by saying ‘Large chest for sale, no drawers, ph……’ on a card 😀

        • Kitty Catkin

           /  February 10, 2018

          Parti, the drawers are knickers, not furniture, and these are very old expressions that just mean going up and down like a yoyo. But they are funnier and more expressive. ”

          The BBC forbade its staff to say ‘Winter draws on’ on air.

  4. oldlaker

     /  February 10, 2018

    With Fletcher announcing on Monday an even bigger loss than the last big loss they posted in In October, the NZ sharemarket is bound to take a further hit. Unless they extend the trading halt… but it’s only delaying the inevitable.

  5. Gerrit

     /  February 10, 2018

    It is too easy to simply read the value figures but one really needs to see the volume traded figures at the same time to see what is going on in the market.

    If you look have at the DOW over a twelve month period (something one hopes your KiwiSaver fund managers does) the reason for the sell off and buying is apparent.

    Incidentally the DOW was up 1.38% yesterday.

    https://www.marketwatch.com/investing/index/djia/charts

    If you (and hopefully your KiwiSaver fund manager) bought shares twelve months ago their value increased 25% over the year. The Dow went from 20K to 25K.

    Notice on the year graph, the volume of shares traded in the last month. Huge. People are simply taking the 25% capital gain and others are buying on the premise of future gains.

    Those selling are making a 25% profit for reinvestment (or companies are buying shares back for reinvestment or distribution back to shareholders whilst the price is right).

    Those buying are seeing something in the American/World economy that gives them confidence they are not wasting their (or your KiwiSaver) money.

    • Blazer

       /  February 10, 2018

      that is basically useless information.Tell us why the Dow rose to record highs ,why P.E’s are at quite ludicrous levels for in demand stocks,why fundamental and tech analysis does not validate…share prices.

      • Gerrit

         /  February 10, 2018

        Quite simple, The Dow has always been a speculative stock market. Price to Earnings ratio means very little if the prime aim is speculation due to taxation on repatriated profits for multinationals from tax havens. Unlike the New Zealand share market where a dividend stream is more important than share price gains.

        Dow Jones rises as more people want to buy the fewer stocks on offer. Similarly falls as more shares are offered to fewer buyers. Simply how markets work (shares or houses)

        That is why volume traded is so important.

        Low volume – few people selling, more buyers = higher prices.
        High volume – more people selling, more people buying = lower prices.
        When prices drop the sharks circle to buy at low prices – volume rises = higher prices again.

        Useless information for those who don’t understand USA share markets.

        I guess people like the Dow Jones Industrial Average publish charts that are useless just because they can so that people are confused??.

  6. Conspiratoor

     /  February 10, 2018

    Looks to me the DOW liked obama as much as it likes Trump

  7. Kitty Catkin

     /  February 10, 2018

    I wonder if Trump will claim responsibility for the slump as well as for the rise.