Finance

Market Recap: Down, Down, Down

Markets closed down on Wall Street today:

▼ Dow -0.21 percent
▼ S&P -0.33 percent
▼ Nasdaq -0.52 percent
▼ Oil -0.26 percent
▲ Gold +1.12 percent

On the commodities front:

▼ Oil (NYSE:USO) fell to $105.97 a barrel
▲ Gold (NYSE:GLD) up to $1,778.20 an ounce
▼ Silver (NYSE:SLV) fell 0.20 percent to settle at $34.43

(Related: Do Central Banks Care More About the Dow or Gold?)

Today’s markets were down because:

1) Greece: Investors remained skeptical about the bailout for Greece, approved by euro-zone finance ministers on Tuesday, after Fitch lowered the credit rating on Greek debt from “CCC” to “C,” indicating that the ratings agency believes default is “highly likely in the near term.”

While the deal means Greece will stay in the euro, and suggests it will avoid default in the near term, analysts warn that the nation will eventually need more support, and that Greece’s fate also depends on whether private-sector investors agree to accept a massive writedown on their holdings of Greek debt.

2) Housing: Existing-home sales rose 4.3 percent in January to a seasonally adjusted annual rate of 4.57 million homes, the highest level since May 2010, according to the National Association of Realtors. Record affordability driven by low home prices and mortgage rates helped drive sales, pushing down inventories.

3) Companies: Dell was decidedly the most disappointing earnings call on Tuesday as the company reported results that missed expectations, pushing shares down 6 percent. Luxury homebuilder Toll Brothers reported a $2.79 million loss on Wednesday, a significant reversal compared to the $3.42 million it made in profit last year. Apple was also in the spotlight today as the tech giant faced China’s Proview International in a Shanghai courtroom on allegations that it does now own the rights to the iPad trademark in China. Meanwhile, Netflix shares were dealt a heavy blow in the form of Comcast’s new “Streampix” video-on-demand service, though Comcast says the service is not meant to compete with Netflix.

[Editor’s note: the above is a cross post that originally appeared on Wall St. Cheat Sheet.]

Comments (10)

  • ohnomrbill
    Posted on February 25, 2012 at 1:16am

    the stock market has gone from 7000 to almost 13000 since this administration has taken office, lets spin this again around around around we go

    Report Post »  
  • sbenard
    Posted on February 22, 2012 at 11:41pm

    Key to understanding all data releases — “seasonally adjusted”.

    Those two words are used instead of the truth — PFA — plucked from air! They do it with just about everything! These “adjustments” vary widely from month to month, and they refuse to divulge the methodology so they can’t be scrutinized or criticized. Watch with every data release for these two words — seasonally adjusted — they are code word for “concocted” and “propaganda”.

    The last jobs report at the beginning of this month magically transformed a job LOSS of about 3 million jobs into a glorious jobs INCREASE of more than 250,000 jobs! All due to a “seasonal adjustment” that no one can explain and that varies by several hundred thousands jobs month after month!

    Report Post » sbenard  
  • robert
    Posted on February 22, 2012 at 10:28pm

    Investors in Greece will have to agree to accept a write down of their debt. If they don’t, Greece will default and they’ll get nothing.

    As it stands now, the bailout money will last about two years, at which time there will be another bailout required for about the same amount. Then another. And another.

    And if severe austerity cuts are not made to salaries, pensions, jobs, and social benefits, another bailout will be necessary in MUCH less that two years.

    Right now it looks like the best thing Greece can do is default and get it over with, then start from scratch.

    Either way, though, default or bailout, cutbacks are coming IMMEDIATELY and they will be SEVERE.

    Get ready for more fighting in the streets.

    And after that?

    Portugal, Spain and Ireland are next. The whole affair amounts to a collapse in slow motion. But collapse they will.

    Report Post »  
    • Jaycen
      Posted on February 22, 2012 at 11:43pm

      2 Years, Robert? You think?

      I’d be surprised if it bails them out for 6 months.

      Report Post » Jaycen  
  • Viper1
    Posted on February 22, 2012 at 9:45pm

    You haven’t seen any thing yet

    Report Post »  
  • lukerw
    Posted on February 22, 2012 at 8:48pm

    Any “good news”… is just Propaganda! And, the Powers over Greece… simply do not know how to, or what does, Stimulate an Economy (ie Demand, thereby Employment)!

    Report Post » lukerw  
    • TomFerrari
      Posted on February 22, 2012 at 9:56pm

      Remember these numbers are inflated due to the federal reserve bank printing cash 24/7!!
      Sure it feel good if you own lots of stock. But most Americans do NOT!
      Big banker bernanke bailing out obama’s wall street buddies by inflating their stock prices.

      I’m worried this is the mad influx of foreign capital into the US Markets because they know the rest of the world is on the verge of collapse. They know we will go down as well, but we will be the last to fall. Why? Because we still have just enough freedom to not let govt destroy us overnight.

      Report Post » TomFerrari  
  • No Owebama
    Posted on February 22, 2012 at 8:45pm

    All the phony numbers that the barry’s administration are putting out will catch up with them and us soon enough.

    Report Post » No Owebama  
  • Gypsy123
    Posted on February 22, 2012 at 8:35pm

    Well down she goes. I don‘t have stock don’t won’t stock. I will take stock in those things I can use to feed my family and friends.

    Report Post » Gypsy123  
  • bullcrapbuster
    Posted on February 22, 2012 at 7:56pm

    Greece is now officially a wellfare bum.

    Report Post » bullcrapbuster  

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