Stock Futures Already Down 200 pts — Gold Tops $1,700
- Posted on August 8, 2011 at 9:06am by
Jonathon M. Seidl
- Print »
- Email »
UPDATE:
The markets are down over 300 points after the opening bell:
Additionally, S&P has now downgraded Fannie Mae and Freddie Mac.
You can stay up-to-date on the market happenings by visiting CNBC.
Original story below.
NEW YORK (AP) — U.S. stock futures tumbled Monday amid a rout in global stocks after Standard & Poor’s downgraded the U.S. credit rating for the first time.
S&P cut the long-term debt rating for the U.S. by one notch to AA+ from AAA late Friday. The move wasn’t unexpected, but it comes when investors are already feeling nervous about a weak U.S. economy, European debt problems and Japan’s recovery from its March earthquake.
Ahead of the opening bell, Dow Jones industrial futures fell 200 points, or 1.8 percent, to 11,202. S&P 500 futures fell 24, or 2.percent, to 1,173. Nasdaq 100 futures fell 44, or 2 percent, to 2,143.
In Europe, the German DAX index fell 2.3 percent. In Asia, Japan’s Nikkei 225 index fell 2.2 percent.
Prices for U.S. government debt, though, rose. That‘s because Treasurys are still seen as one of the world’s few safe investments. The yield on the 10-year Treasury note fell to 2.5 percent from 2.57 percent late Friday. It fell as low as 2.46 percent earlier Monday. A bond’s yield drops when its price rises.
But where Treasury prices are at the end of the day will be more important than where they are at the start, Bill O’Donnell, head of U.S. Treasury strategy at RBS Securities, wrote in a report.
“We will learn more about the future path of Treasury prices at today’s close than we will by the open,” he said. “I want to see how the market clears and how it synthesizes the cacophony of news of late.”
Gold is another investment that investors traditionally run to for safety. It rose above $1,700 per ounce for the first time. Its price remains below its 1980 record after adjusting for inflation.
“Investors are concerned about a rising risk of global recession, credit downgrades especially now in the eurozone, such as France, the threat of a major bank bust and a global liquidity trap as investors stay in cash,” said Neil MacKinnon, global macro strategist at VTB Capital.
Investors are worried that Spain or Italy could become the next European country to be unable to pay its debt. The European Central Bank said it will buy Italian and Spanish bonds in hopes of helping the countries avert a possible default.
Seeking to avert panic spreading across financial markets, the finance ministers and central bankers of the Group of 20 industrial and developing nations issued a joint statement Monday saying they were committed to taking all necessary measures to support financial stability and growth.
“We will remain in close contact throughout the coming weeks and cooperate as appropriate, ready to take action to ensure financial stability and liquidity in financial markets,” they said.
Crude oil, natural gas and other commodities fell on worries that a weaker global economy will mean less demand. Oil fell $3.40 to $83.48 per barrel.
Last week, the Dow Jones industrial average fell 698.63 points. That was its biggest point loss since October 2008, during the financial crisis. The Dow has dropped in nine of the last 11 trading days.
Worries about the U.S. economic recovery have been building since the government said that economic growth was far weaker in the first half of 2011 than economists expected. The economy grew at a 1.3 percent annual rate between April and June, below economists’ expectations of 1.7 percent. It expanded at just a 0.4 percent rate in the first quarter.
Then reports showed that the manufacturing and services industries barely grew in July. Job growth was better than economists expected last month. But the 117,000 jobs created in July were still well below the 215,000 that employers added between February and April, on average.
The Federal Reserve will meet on Tuesday, but economists don’t expect much to come out of the meeting. The central bank’s key interest rate is already at a record of nearly zero, where it has been since 2008. The Fed has also already said that it plans to keep rates low for “an extended period.”
The central bank finished a $600 billion program in June to buy Treasurys in hopes of supporting the economy. Chairman Ben Bernanke said last month that the Fed would step in to help the economy if it further weakened. But some Fed policymakers oppose more bond purchases, saying it could lead to higher inflation.
Popular Stories
Paper Details Obama Admin’s Alleged Secret Note Sent to Iran: If Israel Attacks, We Won’t Get Involved 585 Comments
‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 413 Comments
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 412 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 375 Comments
President Obama Issues Major ‘Green Energy’ Executive Order 369 Comments
Faith
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 412 Comments
Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 413 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
- President Obama Issues Major ‘Green Energy’ Executive Order 369 Comments
- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 151 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 303 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 412 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
Comments (125)
drattastic
Posted on August 8, 2011 at 10:24amAll is going exactly as planned .Our children and grandchildren will live in a third world country .
Report Post »mossbrain
Posted on August 8, 2011 at 10:20amThose of us who don’t have any investments can only say to you who do, “Hahahahahahah watch your money evaporate suckers”
I blame the real estate and banking industries and the dumbocrats who approved all the sub prime mortgages. Obama is a failure, he failed to increase taxes on the rich so he never should have increased spending. We would be having these problems anyway even if Mc
Report Post »Cain were elected. Look at the whole world, it is not only Obama who is to blame.
hauschild
Posted on August 8, 2011 at 10:29amYou‘re right about McCain and thank GOD he didn’t get elected because he would have set the Republicans back at least (3) election cycles. You can’t arm-chair-quarterback the economy, so McCain would have been out of luck.
How in the world did we nominate that idiot? I mean, my choice wasn’t much better as I voted for Romney. But, I guess the best thing McCain did was spawn a real leader like Palin.
Report Post »Enuff Zenuff
Posted on August 8, 2011 at 10:33am.
Report Post »(paraphrasing Jay Leno’s Friday night comment on the stock market sliding)…
Who knew Charlie Sheen was such a genius? – blowing all his money on drugs and whores!
Enuff Zenuff
Posted on August 8, 2011 at 10:52amIn response to your questions about how McCain got elected, go back and look at what happened… The liberal media chose him as the guy they wanted to run against Obama. That way if Obama lost, they’d still have a liberal in the White House.
Once the liberal media aligned on McCain, he became the Republican nominee within about a week. Then a week later, the NYT came out with a national headline attempting to trash McCain with a hit piece claiming he’d been having a long-time affair with an attractive lobbyist. The NYT presented absolutely no proof of this – just a rumor that someone had repeated a year earlier, so the story gained no traction and was dropped… but that is just an eyeblink of what we can expect from the liberal media for the 2012 election.
Don’t kid yourself – the liberal media has long been heavily influencing the selection of both nominees. Since Obama is already in the bag, their focus will be on selecting a liberal Republican nominee… Whoever they endorse, you can bet that will be a liberal, NWO, neo-Con who will grant blanket amnesty, endorse ObamaCare, and continue to destroy America’s economy with Progressive ideas. Don’t let them!
Whoever the liberals endorse for the Republican candidate will be the person the liberals most want. Do not be influenced.
Report Post »SamIamTwo
Posted on August 8, 2011 at 10:55amMossbrain, nice.
Report Post »Favored93
Posted on August 8, 2011 at 12:56pmYou are right the O show is not the ONLY one to blame. However he deserves enough to call for his resignation!!!!
Report Post »redbone007
Posted on August 8, 2011 at 10:19amEverything this man (Obama) touches go to hell. We need to revisit everything this man placed his hand on and roll it back.
Report Post »ddg7
Posted on August 8, 2011 at 10:19amThe news of the stock market is depressing and I could really use a good laugh. Can someone please post a story about Mika Brzezinski.
Report Post »martinrnelson
Posted on August 8, 2011 at 10:18amI’m going to share a link with you that has disturbed many of us in the military community. Especially those who have served this country for many many years with the promise to retire at 20 years. The Obama administration is putting forth a possible proposal which would pull the carpet out from under those of us who have spend a lifetime protecting this country with that promise of a 20 year retirement. Please visit the following link and pass the word. However, please do you own homework. :) http://www.airforcetimes.com/news/2011/07/military-dod-panel-calls-for-radical-retirement-overhaul-072511/
Report Post »hauschild
Posted on August 8, 2011 at 10:23amThe link’s dead.
But, if what you allude to is true, it just proves the point that nothing is off the table in terms of cuts when you’re headed for 20 trillion in the red. I don‘t understand how anybody that gets any type of government entitlement doesn’t get this???
Report Post »Omaof19
Posted on August 8, 2011 at 10:15amThe way I see it is that it is all part of the “Plan” to destroy our country. It is going exactly as they have planned. Let us continue with Governor Perry and others and storm the Throne of GRace, Jesus Christ for mercy, forgiveness, and revival. That is our only hope. We need a miracle. Pray expecting He can do great things. Pray that God will do an act of Grace to our president as he did to Saul (Paul). “Obama, Obama, why persecutest thou me.“ In ”me” he also meant His people. As our Lord and Savior said on the cross about those that persecuted him and hung him there, “Forgive them for they know not what they do.”
Report Post »John_The_Beloved
Posted on August 8, 2011 at 2:42pmPerry is not it. He is a Globalist. Go look it up. I watched a little bit of the prayer meeting he had and to me looked like Lucifer having prayer meeting God’s holy saints.
Report Post »hauschild
Posted on August 8, 2011 at 10:10am$20 says FrankMac’s a Hope-N-Changer.
Report Post »mattmo79
Posted on August 8, 2011 at 10:04amWhere is our great leader today!!! Hiding out? Too busy fundraising to address the nation and take responsibility for his actions! Grow up and be a man!!!
Report Post »redbone007
Posted on August 8, 2011 at 10:13amThis weekend, our great leader (Obama) was playing golfs.
Report Post »conservative510
Posted on August 8, 2011 at 11:03amHe can play all the golf he wants. It’s better than him screwing things up worse.
Report Post »bringbackSAC
Posted on August 8, 2011 at 10:00amBoy, look at all that capital gains tax your missing out on, I guess you forgot to put that in your equation.
Report Post »bringbackSAC
Posted on August 8, 2011 at 9:58amWell obama how are you going to try to spin and lie your way out of this, do us we the people a favor and resign. You suck as an organizer and suck more at president. As the Nippon leader said we woke a sleeping giant. You woke we the people and you will be served your walking papers in 2012 too friggin bad we have to wait that long to get a traitor out of office. Take you and your Biatches back to Kenya try running a smaller country first
Report Post »Your Name Here
Posted on August 8, 2011 at 10:07amRun a small country first? Just look around the world and everywhere you see blacks in charge you see places like Haiti, all of Africa, most of the Caribbean, etc.
Report Post »Blacks don’t build things, the tear them down.
Yes, white people do it too, just look at our government!
ProbIemSoIver
Posted on August 8, 2011 at 10:16amI can’t stand the Muslim, communist, POS Obama as much as the next Blaze reader. But don’t think Bush was not a saboteur of America. He was king George the dictator, working for his daddy, who is one individual at the top of the totem pole of the NWO. Quit thinking that the Republicans are coming to save the day. Our Country is at war with the global elite.
Report Post »B.O.STINKS
Posted on August 8, 2011 at 10:34amI 2nd that truth! The President of the United States of America ( Land of the Free and Home of the Brave) is ENEMY #1 to… the United State of America! Thug a$$ troublemaker! Let “us” learn from “our” mistakes! When B.O. asked Joe the plumber if he believed in “redistributing the wealth” he needn’t have said anything else. That there said it all! The good thing is that we now may take opportunity of this historical grand scale failure and use him as an example, to our kids, of what happens when you put such a controlling, godless mindset in charge a free nation. There is something wrong with that dude! He is not one of us!!!
Report Post »docvet
Posted on August 8, 2011 at 12:59pmWhat the countries of the world don’t realize is that every one of them could be a USA style country if they would do what we did and have an American type revolution, make a constitution that gives the people, not the government, the power to run their country.
Obama has been brainwashed (as most third-world country people have been) into believing that there is only one world-pie and we have to share it rather than every one having/making their own pie (my complements to Glenn Beck). Now, he is trying (and suceeding) in making us into a third-world country and having us become vulnerable to countries like China, Germany and Russia. Now we are going to find out how courageous the American people are and see if we can “land of the free and home of the brave” ourselves out of this mess.
Report Post »UlyssesP
Posted on August 8, 2011 at 9:54amMoths and rust baby!
Report Post »ChiefGeorge
Posted on August 8, 2011 at 9:54amYea and Beckel just said on FOX the SP should be downgraded and that he would not buy a scooter from the SP spokeman. We are witnessing the cascading effect of our entire economy collapsing with not only the stock market but the market actually matching real life on the streets. Phony wealth in the markets does not an economy make. Making people FEEL good about the outlook of America. Wake up ppl.
Report Post »hauschild
Posted on August 8, 2011 at 9:42am“And, I would have gotten away with it if it weren’t for those meddling Tea Partiers” …John Kerry
Report Post »pscully17
Posted on August 8, 2011 at 9:58amLOL!!! can we pick an Alternate scoobee doo ending for this presidency?.. I really havent liked the narrative so far, and Im pretty sure the ending includes a Burning American Flag, a Shredded Constitution and more dead people than we can possibly bury.
Report Post »9stuff
Posted on August 8, 2011 at 9:42amObama often uses “car in the ditch ” example. Paul Ryan offered a tow truck.
Report Post »Obama instead slapped on 20″ rims, a huge stereo and a custom paint but never worried about the brakes.
With the stereo blasting he could not (or would not) hear the warnings of his passengers
and then drove off the cliff at 100 MPH.
UlyssesP
Posted on August 8, 2011 at 9:37amMore, more, more!
Report Post »Gypsy123
Posted on August 8, 2011 at 9:33amAny body for crash? That is what Dent is predicting for 2012
Report Post »audiemurphy
Posted on August 8, 2011 at 9:31amexciting times but also dreadful and for the wicked ! be prepared !
Report Post »have peace hope love and charity and pray for the strength to do what is right!
redbone007
Posted on August 8, 2011 at 9:29amI do not understand why this president did not come out this weekend and speak to the American people and the world before the markets today. He played golfs both on Saturday and Sunday but he could not speak to calm the markets.
Report Post »hauschild
Posted on August 8, 2011 at 9:55amObama couldn’t care less. Isn’t it obvious by now? He’s got his $210,700 annual pension ready to roll when he’s done. The future‘s so bright if you’re bottom-feeding leftist.
Actually, if the market really tanks – which I’m not convinced it will – it will be Obama’s Mission Accomplished moment, where he will have aided in the destruction of the vast majority of middle class wealth in America, thereby leveling out the playing field (albeit in a real creepy manner).
Report Post »ConservativeResponse
Posted on August 8, 2011 at 9:28amIt’s going to be a bumpy ride.
Report Post »jmbogstad
Posted on August 8, 2011 at 9:27amForget all this dooma and gloom and watch an entertaining video instead.
Report Post »http://www.youtube.com/watch?v=On8eTIqhqRE
ProbIemSoIver
Posted on August 8, 2011 at 10:49amMust have been you. If it were the Gong show, I would have to oblige. I give you an A for effort, But an overall score of C. That was a nice golf course. When The Country was doing better economically, I used to be able to play golf. Damn, I miss it. Thanks all you globalist, socialists and their liberal useful idiots. I can’t enjoy the benefits of my hard work as much as I used too. That’s OK though before you xenophile liberal losers retort by saying I am spoiled American that never should have had the luxury of playing golf, I tell you this. NWO has my and others back against the wall. I am preparing to go on an Entrepreneurial escapade. I will be working without licenses, permits, insurances, etc. I will be Bartering, and people are going to begin exchanges with a different currency. We will no longer be slaves to the progressives. I will be rolling in benefits from my hard work and persistence. I WILL be playing golf 3 times a week again, on the best-ranked Courses again !!!!
Report Post »JJ1640
Posted on August 8, 2011 at 9:26amTrust in the Lord and not men
Report Post »Snowleopard {gallery of cat folks}
Posted on August 8, 2011 at 9:35amAmen, for He has used his people to warn the world this was coming for some time; we have a small window left, and with a firm reliance upon him alone we will make it and be able to help others as well. Now is the time to stand, for the watchmens job is concluded; the storm is here, and we have a rollercoaster cutting loose.
Report Post »louise
Posted on August 8, 2011 at 2:30pmamen JJ1640.
and amen to Snow, too.
As watchmen and watchwomen, we cannot remain silent. For all the disaster and suffering that goin on, we cannot remain silent about the Truth of God, the Plan of God, and about what is coming.
Report Post »Everyone needs to remember that scripture tells us that if we remain in Him, He will remain in us. Thank you Jesus.
SpankDaMonkey
Posted on August 8, 2011 at 9:22am.
Report Post »Folks used to say “The future is so bright, I need to wear shades!”….. Well it’s time to take the shades off………
burned at edges
Posted on August 8, 2011 at 9:20amLooks like everyone who is usually here is busy online trying to sell all their stocks…lol
Report Post »JLGunner
Posted on August 8, 2011 at 9:24amlol, I cant wait to see $2.00 per gallon gas again
Report Post »sickfreak
Posted on August 8, 2011 at 9:17amPlease prepare….the house of cards is about to go up in flames. I said back in February that September would be the month that this all would start….looks like I’m a month late. Something very wicked this way comes.
Report Post »vennoye
Posted on August 8, 2011 at 9:50amDon’t know that you were wrong. August may just be run up to September. Think September may be worse. Watch what the UN does on the Israel/Palestine two state solution in September.
Report Post »burned at edges
Posted on August 8, 2011 at 9:17amS and P downgrade is an illegal act according to the 14th ammendment to the constitution. They should all be arrested there, and the assets of S and P siezed.
Report Post »joe1234
Posted on August 8, 2011 at 9:29amuh yeah right….take off the tin-foil and get back on your meds….
Report Post »dthompson579
Posted on August 8, 2011 at 9:29amYou can’t pick through the Amendments to the Constitution to find one you like and go with it. I think you forgot about the 1st one. You know the whole free speech thing. Oh wait that one only covers Bible and flag burnings right? Got to love Progs twisting the Constitution to fit their ideals.
Report Post »redbone007
Posted on August 8, 2011 at 9:32amThen, Equifax, Transunion, and Experian should be placed in jail for lowing my credit score.
Report Post »Bushie
Posted on August 8, 2011 at 9:51amI don’t remember seeing this in the Constitution???????
Report Post »I am retired and I am watching my IRA fall however, if it is the price I have to pay in order to get the anti-American as$hole and his anti-white wife out of the white house out, I will live with it.
SamIamTwo
Posted on August 8, 2011 at 10:51amWhat? Linky please to the actual words that bars S&P ratings…they’ve been doing this for 70 years and now you imply it is unconstitutional?
Who is left to hold our Government accountable, other than we the People. I am proud that someone is pointing out that our Government is failing…I don’t want to get Greeced, do you!
Report Post »101
Posted on August 8, 2011 at 1:35pmAmerica’s S&P AAA rating has been way over rated for this Country that no longer manufactures and only consumes, America’s credit score is still over rated at AA+ not under rated. This Country is in bad shape and without the right leadership in office this Country will continue to fail & fall deeper in debt….don’t be mad at the US credit score, be pissed at the BO administration for destroying this country with out of control spending & no budget, this is BO credit score (the poor little Kenya boy that never had a father or a dime to his name) spending trillions!
Report Post »