Business

Market Recap: Stocks Tumbled as Draghi Dashed Hopes for Broad ECB Intervention

Markets closed down on Wall Street today: 

  • Dow -1.63 percent
  • S&P -2.11 percent
  • Nasdaq -1.99 percent
  • Oil -2.48 percent
  • Gold -1.86 percent

On the commodities front:

  • Oil (NYSE:USO) fell to $98.00 a barrel
  • Gold (NYSE:GLD) down to $1,712.40 an ounce
  • Silver (NYSE:SLV) fell 2.93 percent to settle at $31.67

(Related: Precious Metals Decline After Mario Draghi Disappoints)

Today’s markets were down because:

1) ECB: Though ensuring European banks would have unlimited access to cheap cash with new three-year loans, European Central Bank President Mario Draghi frightened investors when he refused to commit to broad assistance to troubled euro countries. The news should have come as no surprise, given that Draghi has continually emphasized the importance of sovereign governments taking their steps to restore confidence and tackle the debt crisis, but many were still hoping the ECB would expand its bond-purchasing program.

2) Jobless. The number of people filing for initial unemployment benefits fell to a 9-month low of 381,000 last week. The news initially boosted markets, but as has been the case for months now, Europe’s news soon overshadowed the tiny shred of positive economic data in the U.S., where wholesale inventories for the month of October also did better than expected, according to a report today, coming in at 1.6 percent instead of the projected 0.2 percent increase.

3) Banks. Financials were unsurprisingly the hardest hit by the ECB’s news, with all major U.S. banks declining. Wells Fargo, Goldman Sachs, Bank of America, and JPMorgan were all down 3 to 5 percent today, while Citigroup and Morgan Stanley did even worse, closing the day down 6.97 percent and 8.42 percent, respectively.

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

Comments (9)

  • fixer
    Posted on December 8, 2011 at 8:29pm

    guns,ammo,food,water,gold,silver…these are gonna be the new currency soon.

    Report Post »  
  • ReadyOrnot8
    Posted on December 8, 2011 at 6:42pm

    Time to get ready folks. We have heard it from Glenn for at least two years now. I know I am not there yet with all that I should have but I am further along due to Glenn’s persistence. I hear it all the time from my coworkers that it is silly to have food storage. Then I ask them if they have a spare tire in their car. Only one or two of them even remotely understand what I am talking about. I hope everyone is getting ready.

    Report Post »  
  • TRILO
    Posted on December 8, 2011 at 6:40pm

    And this is a shock to the stock market that the ECB will not (because they cannot) continue to bail everyone out. What is shocking is those who gamble and risk their money keep buying into the lie that more debt will solve a debt problem or that a write off of debt is not a default. Europe and the USA are BANKRUPT it is not too difficult to figure out if you actually look at the numbers. If any of these European leaders agree at the summit tomorrow, to turn the soverienty of their country over to an unelected commission who will approve their future budgets those politicians will find their necks a little longer. Germany and France are in a huge power grab and the people of the other Eurozone countries know it. There is no way to solve this problem except to actually go bankrupt and let the chips fall where they may, write off the debt, abolish the tenants of socialism, roll up one’s sleeves and start over and hopefully learn a very, very hard and painful leason.

    Report Post » TRILO  
  • Ynnis Glytyr
    Posted on December 8, 2011 at 5:52pm

    I truly believe we are fed the wrong numbers. I am convinced the Feds are buying up stocks to make the market go up, and the ESC (Employment Security Commission) is giving us the wrong numbers on unemployment. Of course in their minds unemployment has dropped, because many people have stopped looking and are not eligible for unemployment any longer. Those people are not counted (everybody on welfare is NOT counted!). I reckon they have to up/down the numbers so the bastard-in-chief will look good. He is such a waste !!!!!

    Report Post »  
    • Thevoice
      Posted on December 8, 2011 at 7:09pm

      Have to go along with some of your thoughts….We have a perceived economic system today. Case in point 7.7 trillion the FED moved to the banks under the radar of public scrutiny. Most of this money was used in their investment banking arms. It has sheared up the stock market. Case two …and others like this…GM reports their sales ??? These are sales of mostly debt owed to them from purchase of auto a good number of which is again money that is funneled to GMAC from the FED Image being able to have a business where you basically are able to extend open credit to your customers at a unlimited bases . Number three…The bond losses in Europe .So the banks take a hit ….the IMF promises to shear up the banks from the losses ….In the mean time it has caused a credit crunch in europe. . Again behind the scens ..The snata Ben Bernanke funneling money to the banks to ease the credit crunch thus bailing out the banks agin this time through their gorgin operations …Wonderful…. We all know in the end there is never enough money to substain the social safety net of a Europe ..Number four ..The US federal and States debt problems are building. Look back most of the stimilious was to prop up the States short falls Schools to fire, police roads ..But now in just a couple short years that money has been burned through and they need a nother shot of the crack ….From the FED …Endless cycle of major collaspe coming .. .

      Report Post » Thevoice  
  • ZAP
    Posted on December 8, 2011 at 5:46pm

    GooD ByE

    Report Post » ZAP  
    • AvengerK
      Posted on December 8, 2011 at 6:18pm

      what a shock…the Europeans can’t agree on anything….

      Report Post »  
  • TXPilot
    Posted on December 8, 2011 at 5:18pm

    This is just the beginning folks. The world economy is coming down and it’s coming down hard. Get out of the market and invest in items that will save your future and save your life. You can‘t protect yourself with stocks and you can’t feed your family with soon to be worthless dollars.

    Report Post » TXPilot  

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