DOW closes down 283.

[trof]

U.S. stocks sink as home sales fall to 10-year low

Blue-chip index socked with largest point loss in a month

By Kate Gibson, MarketWatch
Last Update: 4:28 PM ET Jul 24, 2008

NEW YORK (MarketWatch) -- U.S. stocks fell sharply Thursday, with the Dow Jones Industrial Average shedding nearly 300 points after two days of gains, as investors reacted to gloomy data on the housing sector and the job market.

"Jobless claims surged and housing continues to slump. This is not good news for the economy and has caused the fear trade to come back," said Kevin Giddis, managing director at Morgan Keegan & Co.

The Dow Jones Industrial Average ($INDU) dropped 283 points, or 2.4%, to end at 11,349, with 26 of its 30 components finishing in the red. Pacing the decliners, General Motors Corp. (GM) shares tumbled 11%.

Other laggards weighing on the blue-chip index included Citigroup Inc (C), down 9.8%, and Boeing Co. (BA), off 6.3%.

The S&P 500 ($SPX) fell 29 points, or 2.3%, to 1,252, with the financial sector fronting the losses, down 7%. It was followed by consumer-discretionary issues, off 4%, and information technology, which lost 3%.

The economic news "provided a backdrop for the sell-off," said Paul Nolte, director of investments at Hinsdale Associates. Listen.

[jayfish]

1. Bu,Bu, But Jim Cramer Said We've Turned The Corner.

Everything will be right as rain by the end of the year.

Jay

[lib2DaBone]

10. LOL.... and NAFTA is good for America....

Here's some quotes sure to brighten your financial day....

September 1929
"There is no cause to worry. The high tide of prosperity will continue." — Andrew W. Mellon, Secretary of the Treasury.

October 14, 1929
"Secretary Lamont and officials of the Commerce Department today denied rumors that a severe depression in business and industrial activity was impending, which had been based on a mistaken interpretation of a review of industrial and credit conditions issued earlier in the day by the Federal Reserve Board." — New York Times

December 5, 1929
"The Government's business is in sound condition." — Andrew W. Mellon, Secretary of the Treasury

December 28, 1929
"Maintenance of a general high level of business in the United States during December was reviewed today by Robert P. Lamont, Secretary of Commerce, as an indication that American industry had reached a point where a break in New York stock prices does not necessarily mean a national depression." — Associated Press dispatch.

January 13, 1930
"Reports to the Department of Commerce indicate that business is in a satisfactory condition, Secretary Lamont said today." - News item.

January 21, 1930
"Definite signs that business and industry have turned the corner from the temporary period of emergency that followed deflation of the speculative market were seen today by President Hoover. The President said the reports to the Cabinet showed the tide of employment had changed in the right direction." - News dispatch from Washington.

January 24, 1930
"Trade recovery now complete President told. Business survey conference reports industry has progressed by own power. No Stimulants Needed! Progress in all lines by the early spring forecast." - New York Herald Tribune.

March 8, 1930
"President Hoover predicted today that the worst effect of the crash upon unemployment will have been passed during the next sixty days." - Washington Dispatch.

May 1, 1930
"While the crash only took place six months ago, I am convinced we have now passed the worst and with continued unity of effort we shall rapidly recover. There is one certainty of the future of a people of the resources, intelligence and character of the people of the United States - that is, prosperity." - President Hoover

June 29, 1930
"The worst is over without a doubt." - James J. Davis, Secretary of Labor.

August 29, 1930
"American labor may now look to the future with confidence." - James J. Davis, Secretary of Labor.

September 12, 1930
"We have hit bottom and are on the upswing." - James J. Davis, Secretary of Labor.

October 16, 1930
"Looking to the future I see in the further acceleration of science continuous jobs for our workers. Science will cure unemployment." - Charles M. Schwab.

October 20, 1930
"President Hoover today designated Robert W. Lamont, Secretary of Commerce, as chairman of the President's special committee on unemployment." - Washington dispatch.

October 21, 1930
"President Hoover has summoned Colonel Arthur Woods to help place 2,500,000 persons back to work this winter." - Washington Dispatch

November 1930
"I see no reason why 1931 should not be an extremely good year." - Alfred P. Sloan, Jr., General Motors Co.

January 20, 1931
"The country is not in good condition." - Calvin Coolidge.

June 9, 1931
"The depression has ended." - Dr. Julius Klein, Assistant Secretary of Commerce.

http://www.safehaven.com/article

[islandmkl]

2. one reason, and one reason only....

Barack Obama's speech in Berlin....






i can hear it now....

[aquart]

3. Do any of our candidates have jobs programs?

[Sonicmedusa]

6. You know, that's just it....

I was discussing today with other students about how medical office transcription and medical coding and billing jobs are even being outsourced. One student said "they told us to focus on technical and medical jobs because they are about the only growth industry, and they have found ways to even outsorce those jobs". What the hell?

America doesn't need stimulus checks, we need JOBS. We need them NOW.

[kenny blankenship]

8. Globalization will answer all your full employment concerns... Weren't you there at Davos

when they went over all this?

And really, jobs programs? What can jobs programs do for you after you de-industrialize a whole country? That's like building a hydroelectric dam on a lake after you've already drained it. The barn door and the horse are continents away from each other by now. Carter had jobs programs. Clinton talked about having jobs programs and worker retraining, but once Mr. Clinton got into office his minders from Wall St. explained to him that enacting plans like that would quickly destroy the value of the dollar, wrecking the economy, pissing off the people who mattered, and could lead to his early departure from office. So instead of "free trade" and worker retraining to compensate for dislocations, we just got the NAFTA GATT screwjob.

If we went that path now, it would be us against the whole world, and at this point the only thing holding us up is foreign investment - the willingness of China, Russia, Japan and the Arab oil kingdoms to keep buying U.S. debt. During the century that we were on top, we taught them how to be ruthless capitalists by our ruthless example, and now they're going to school us.

[NMDemDist2]

4. I didn't think GM still had 11% to fall

are they a penny stock now or what? :shrug:

[Betty]

5. by the time george asshole leaves office

I predict the dow will be lower than it was when he stole the office eight years ago. Another great achievement for the pinhead.

[lyonn]

7. I think I have figured it out...

Today would have been a good time to invest then hold until next week when it goes back up! ha This seems to be a steady trend. Believe they call it day or days trading? No, I have no stock, never have, too scary and I'm from the olden days anyway.

[exothermic]

9. There's a "mini-Enron" scandal breaking just up the street here

(not so mini for people who've lost their asses)
http://www.newson6.com/global/story.asp?s=8725302

[aspergris]

11. like i said yesterday,

When I said the smart money had turned net SHORT.

This is bear market. We had a several day snapper relief rally. That is an opportunity to SELL strength.

In a bear market, you sell strength.

The economic news was the "backdrop", but that's merely the catalyst. Markets get overbought and overextended. The FIERCEST (strongest) rallies occur in the context of a bear market.

and they offer phenomenal fade opp's

Due to the adult learning principle of "recency" people get euphoric on these relief rallies.

Don't believe the hype.

Bear market. Fade strength