HELLO! Debt deal is a bad deal - S&P 500 Hits 2011 Low

[liberal N proud]

NEW YORK (Dow Jones)--U.S. stocks dropped sharply Tuesday amid fresh worries over the state of the economy, pushing the market to its longest losing streak in nearly three years and sending the Standard & Poor's 500-stock index to a 2011 closing low.

The Dow Jones Industrial Average tumbled 265.87 points, or 2.19%, to 11866.62. All 30 Dow components finished in the red. The blue-chip index suffered its eighth consecutive decline, its longest since October 2008. It has lost more than 800 points during the skid, dating back to July 22.

Tuesday's selloff steepened just before the closing bell. The Dow dropped more than 100 points in the final hour of trading.

The Standard & Poor's 500-stock index shed 32.89 points, or 2.56%, to 1254.05, led lower by consumer discretionary and industrial stocks. All 10 sectors in the S&P 500 closed in negative territory.

The technology-oriented Nasdaq Composite gave up 75.37 points, or 2.75%, to 2669.24.

Investors fretted even as President Barack Obama signed into law a bill raising the nation's debt ceiling. The focus has turned to weak growth plaguing the economy. Data Tuesday showed Americans cut spending by the most in nearly two years and saved at a faster rate during June, a pair of signs that underscored the economy's lack of vigor.

http://online.wsj.com/article/BT-CO-20110802-718141.html

[monmouth]

1. it's a "debt" deal...n/t

[liberal N proud]

5. Don't know what I was thinking

Can't blame fat finger for that.

[monmouth]

7. Haha, been that kind of a day..n/t

[nadinbrzezinski]

2. The economy is in recession, soon wil be official

and with austerity we may use the D word soon, and I don't mean democrat either.

[jpak]

9. It takes two consecutive quarters of negative GDP to be "official"

and we have had positive GDP numbers every quarter since the Failed (sic) Obama Stimulus was passed.

sorry, but there is no there there

[nadinbrzezinski]

11. Did you check the numbers this quarter?

why do you think it fell? Check factory order numbers, as in durable goods. It is consider a LEADING INDICATOR, yup.

Oh and the problem with the stim packet is that it wasn't LARGE ENOUGH. It is not that it failed.

But I guess Krugman is another idiot that does not know that, he's been singing that failed song for a while.

[jpak]

18. GDP was +1.3% up from +0.9% the previous quarter

yup

[nadinbrzezinski]

21. Factory goods were not, yup, leading indicator yup

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/07/27/bloomberg1376-LOZGS20YHQ0X01-4F1TUF54KPOUDV2L5MMAKL548A.DTL

And I am getting tired of doing your work.

The economy IS slowing down yup

http://blogs.forbes.com/panosmourdoukoutas/2011/07/30/us-economic-slow-down-good-news-and-bad-news-for-the-chinese-economy/

yup

It will be official soon, YUP.

And gives me no pleasure YUP

[jpak]

29. Sorry - no recession for you

U.S. June Leading Economic Indicators up in June

http://www.bloomberg.com/news/2011-07-21/u-s-june-leading-economic-indicators-text-.html

Following is the text of the U.S. leading economic indicators from the Conference Board.

The Conference Board Leading Economic Index for the U.S. increased 0.3 percent in June to 115.3 (2004 = 100), following a 0.8 percent increase in May, and a 0.3 percent decline in April. The largest positive contributions came from money supply, the interest rate spread, and building permits.

Says Ataman Ozyildirim, economist at The Conference Board: “The U.S. LEI continued to increase in June, but the strengths among the leading indicators have been balanced with the weaknesses in recent months. The Coincident Economic Index, a monthly measure of current economic activity, continued to increase slowly. The leading indicators point to slowly expanding economic activity in the coming months

[nadinbrzezinski]

33. You'll see

yup.

And one cause will be THIS FUCK UP OF A BILL.. yup

[jpak]

40. and the Teabaggers will be blamed

if this happens

[nadinbrzezinski]

42. Will see... yup

Finally this is what austerity does, yup

[Ruby the Liberal]

37. Bookmarking

See you in December!

[RKP5637]

12. Frankly, I've always felt a total crash and severe depression might be the

only thing that changes this country. Certainly those on the take aren't going to do a damn thing to stop the raping and plundering of the majority of the country as long as they can squeeze a few more bucks out of the lands.

FDR's policies certainly never would have come about, well, 'cause it was just the right thing to do.

As someone mentioned the other day, this country suffers from The Capitalist Party.

[nadinbrzezinski]

14. Alas SS had a past in a "fringe party" before it was adopted

by FDR. I don;t see the equivalent of that fringe party right now.

[RKP5637]

15. Nope, neither do I. Someone in another post said something to the

effect that we have a congress/admin looking out for themselves, to make sure their butts are covered and their assets protected, that, is their number one priority, and they are short sighted, worried about the next election, etc.

Some in congress are excellent, but taken collectively they don't have the best interests of the populace in mind. If they did, we wouldn't be in this mess in the first place. They are like the greedy CEOs, running USA, Inc. to maximize their profits and bonuses.

BTW - congressional approval is now at 14%. That's 10% more than I would rate them.

[nadinbrzezinski]

16. We are at a very dysfunctional moment

also this strikes me more and more like the Great Compromise from President Fillmore...

This is an argument about the future of the country, as deep and divisive as slavery.

[RKP5637]

24. That, is an excellent analogy, "as deep and divisive as slavery." n/t

[Ruby the Liberal]

35. 14%? Seriously!?

Has it ever been that low before?

[RKP5637]

39. Yep, I just heard it on CNN a bit ago per Jack Cafferty. n/t

[Ruby the Liberal]

44. That is beyond pitiful.

Congrats, Congress! Even Darth Cheney never polled that low.

:rofl:

[RKP5637]

47. Gives a lot of confidence about where we're headed ... maybe these guys

should just stay home on their break and not come back in Sept. Think of the cost savings!

Yeah, they set a record I'm sure! Well, we need something in the constitution that fires congress when they get grades that low.

[Ruby the Liberal]

48. No Constituent Left Behind?

Heh

[RKP5637]

49. Yeah, that should do it! n/t

[taught_me_patience]

3. Week consumer spending numbers did in the market today

The economy is clearly slowing, but the market was pricing in accelerated growth.

[still_one]

4. The market isn't down because of the debt deal, it is down because the economy sucks /nt

[readmoreoften]

8. And it suddenly, drastically sucked today.

[Ruby the Liberal]

20. The market is reacting to the deal itself

Yes, they already priced in the fact that the US would not default, but they did not price in Austerity.

Mohammed El Arian of PIMCO announced that they were lowering expectations even further on US growth today, given what transpired over the weekend through last night.

[nadinbrzezinski]

23. What galls me is that they WANTED austerity

and now they are realizing why it is a bd idea.

[Ruby the Liberal]

30. Actually, they didn't. They know it will kill the economy even faster.

Our research teams have been pumping out crap every hour on the hour the last 2 days. They all assumed a clean lift of the debt ceiling with no cuts/revenues attached. While they are 'happy' about no revenues, they know these cuts are the wrong move in this struggling economy.

The RW has YET to produce an Economist of any stripe who will defend this. Even the Greenspan/Friedman school ones are keeping out of the fray because they KNOW. When times are good (1996), you can't get them to shut up. They know this is a colossal fuckup.

[aquart]

6. And thus the Republicans achieve all 100%.

[EFerrari]

19. Yep. I hope it chokes them. n/t

[JoePhilly]

10. What was the DOW last summer? ~9800. Now its 11,800 ... let's panic!!!!!

Its only up 2000 points from a year ago!!!!

Ahhhh!!!!!!!!!!!!!!!!!!!!

There is a reason no one should use DU, or the WSJ for investment advice.

If you listened to them when the DOW was at 9800 last summer, you sold and lost a fortune.

If you were SMART, when the DOW broke 12,000 recently, you locked in some gains.

Market fluctuation are only bad if you can't ride them out.

And if you think you can't ride out a drop over 3-5 years, get out. The rich can ride out a drop that last much, much longer.

But panic is always a mistake.

But don't believe me, as I said, do not take investment advice on DU. Its not a good idea.

[AmericaIsGreat]

13. Fuck the stock market

It's clear investors and companies can make money without it benefiting the overall economy. Few people in the stock market even know what the hell they're doing.

Anyway, when you announce cuts during a recession, nobody's going to be encouraged.

[DCBob]

17. uncertainty about alot of things including the budget deal, Europe, economic indicators, etc

however it would have been manitudes worse had there been no deal.

[Ruby the Liberal]

22. Well, yes and no.

The market did price in the fact that we would not default. They did not price in Austerity being attached to it.

Add in Italy and Spain, and down she goes.

[DCBob]

25. I think the proposed cuts to health care and defense have them spooked the most.

those business areas have been rock solid for decades now suddenly they are on the chopping block.

[Ruby the Liberal]

26. Here is a short and sweet you might enjoy on this:

Companies who will be smashed by the Debt Ceiling trigger:

http://www.businessinsider.com/healthcare-and-defense-companies-that-could-get-smashed-by-the-debt-ceiling-2011-8?op=1

Edit to add summary: Healthcare and Defense

[DCBob]

28. wow.. thats a long list.

thanks for posting.

[Ruby the Liberal]

31. Reinforces what you said.

:)

[DCBob]

36. yes, I see that. As I was driving home today I was trying to figure out what caused this huge drop.

That was the only thing I could think of that would cause that much concern. The unfortunate aspect of this is that the uncertainty might last awhile until there is some real action coming from the gang of 12.

[Ruby the Liberal]

41. These are just 2 of 12 sectors

And they weren't the worst of the bunch today. Manufacturing (Capital goods) and Conglomerates (Consumer Goods) lead the pack.

( http://finance.google.com/finance scroll down to Sector Summary for the totals of the day)

[DCBob]

46. Actually that makes sense too... consumer confidence/sentiment is going down for sure.

thanks.

[nadinbrzezinski]

38. Well those are anywhere from medium to large companies

makes me wonder if GE knew... tin foil hat... they moved their X-Ray division at a very lucky time. I wonder if Imlet got the inside track?

[Ruby the Liberal]

43. I hear China is beautiful at this time of year

Nice place to visit and relocate an entire Medical Tech division to, aye?

[nadinbrzezinski]

45. Absolutely... and HBC cutting down 10% of their force world wide

hmm

[scheming daemons]

27. how convenient ... if it went up, you'd scream that it was proof that

The deal was a wall street giveaway

[Ruby the Liberal]

34. The Street isn't stupid.

Everyone went home Friday thinking there was going to be a lot of pearl clutching followed by a last minute debt ceiling raise without Austerity measures.

They KNOW this bill is a death by 1,000 cuts in this fragile economy.

[Drahthaardogs]

32. Its a bad bill, the folks with the money see this

and I bet that they are none too happy either. You think some Republicans will not be getting corporate monies this election cycle? I sure do.