U.S. Stocks Tumble as Commodities Enter Bear Market

[marmar]

(Bloomberg) U.S. stocks tumbled, while commodities entered a bear market, after signals of a global slowdown in manufacturing added to disappointing housing and labor market data at the world’s largest economy.

Alcoa Inc. (AA) and Chevron Corp. (CVX) slumped at least 3.4 percent to pace losses in commodity shares. Bed Bath & Beyond Inc. (BBBY) plunged 17 percent as its earnings forecast trailed estimates. Red Hat Inc. (RHT), the largest seller of the open-source Linux operating system, fell 6.2 percent as billings missed some projections. ConAgra Foods Inc. (CAG) rose 2.7 percent as the maker of Hebrew National hot dogs forecast profit that beat estimates.

The Standard & Poor’s 500 Index fell 2.2 percent to 1,325.51 at 4 p.m. in New York. The Dow Jones Industrial Average slid 250.82 points, or 2 percent, to 12,573.57. The Russell 2000 Index of small companies dropped 2.5 percent to 764.83. Trading volume for exchange-listed stocks in the U.S. was about 7.2 billion shares, or 6.9 percent above the three-month average.

“It’s risk off,” said James McDonald, chief investment strategist at Northern Trust Corp. in Chicago, whose firm manages $717 billion. “The economy is losing momentum. The question will be how much the U.S. and China slow. On top of that, the Fed’s response yesterday was fairly tepid. While they indicated willingness to do more, they haven’t done it.” ................(more)

The complete piece is at: http://www.bloomberg.com/news/2012-06-21/u-s-stock-index-futures-fall-on-china-pmi-index-decline.html

[DearAbby]

1. Result of Austerity

really is anyone surprised?

[Cali_Democrat]

2. Why does the GOP and some folks in Europe think we can cut our way to prosperity?

And why doesn't the media question these policies? How exactly does dramatically cutting spending (and growth) create jobs and prosperity?

The media has completely and utterly failed.

[DearAbby]

4. First instinct of those who have it all

is to hold tighter onto it. Like kids with a fist full of cookies, not wanting to share, yet can't eat one themselves.

Austerity has never worked, and it certainly has been tried all throughout history.

[quaker bill]

3. The traders wanted QE3

basically for the Fed to print more money and thus to raise commodities prices by devaluing the dollar. They did not get it. Au and Ag were down pretty solidly today as well.