Tag Archives: Stock Market

MarketWatch: Households just saw $1.8 trillion in wealth vanish as stocks fall

You may have seen headlines to describe the market carnage like a trillion dollar’s worth of wealth wiped away in a single day. But it’s worth noting just how much is held by Americans in the stock market in the first place.

MarketWatch took a look at the Federal Reserve’s financial accounts of the United States report for answers — and did some back-of-the-envelope math.

As of March 31, households and nonprofits held $24.1 trillion in stocks. That’s both directly, and through mutual funds, pension funds and the like. That also includes the holdings of U.S.-based hedge funds, though you’d have to think that most hedge funds are held by households.

MarketWatch – MarketWatch: Households just saw $1.8 trillion in wealth vanish as stocks fall

Wall Street Ends the Day Down Despite Early Gains

Investors were hopeful on Tuesday as U.S. stock seemed to have early gains, but those gains were reversed and U.S. stocks ended down within the final 30 minutes of trade.

Trading on Wall Street was voluminous . S&P 500 was down 1.4% even after a late selloff that gained them 2.9% earlier today.

The day ended with the Dow Jones industrial average falling 204.91 points, or 1.29%, to 15,666.44.  The NASDAQ Composite lost 19.77 points and S&P 500 was down 25.59 points, it’s biggest loss since 2011.

“You saw a knee-jerk drop and a knee-jerk recovery and now people are thinking about it,” said Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Mass.

The Chinese central bank cut interest rates by 0.25%, making the one-year lending rate 4.6%. The reason was “aimed at lowering corporate borrowing costs and to ensure enough liquidity for stable credit growth.”

“I think it’s a real good start, but it’s on the low end of what the markets were looking for. It indicates China has stepped off the idea that markets will go it alone, and instead the government will support them. It’s not a question about how much assistance there is, now that they’ve made the commitment, it will be enough [to quell market sentiment],” McMillan stated.

Despite these efforts to boost China’s equity markets, the Shanghai Composite lost 7.63% and Japan’s Nikkei fell 3.96%.

The price of oil barely rose, but the slowdown in China kept prices from rising significantly. The price of copper rose 2.3%, but the values of both gold and silver fell.

Stock Market Rebound Falls Short; Down Over 500 Points

The attempted rally in the stock market after opening 1,100 points lower eventually ran out of steam and led to a loss of over 500 points.

The Dow Jones Industrial Average (DJIA) closed the day 588.47 points lower, or a 3.6% decline, to finish at 15871.28.  The S&P 500 fell 77.68 points, or 3.9%, ending at 1893.21.  The Nasdaq Composite fell 179.79 points, down 3.8%, to 4526.25.

The Dow at one point rallied more than 800 points after the largest one-day decline during intraday trading but ran out of steam at the end of the session.  Mutual funds and hedge funds began to scoop up cheap stocks that led to the initial rally and moderation of market bounce-back.

“When a big selloff comes, it tends to be herd mentality,” said Ryan Larson, head of U.S. equity trading for RBC Global Asset Management, told the Wall Street Journal. “But once that herd gets out of the way, there can be some very good buying opportunities.”

One investment advisor tried to downplay the significance of the fall by saying the U.S. economy is strong.

“Stock prices have dropped sharply and fears have increased sharply,” said Kate Warne, investment strategist at Edward Jones. “But it’s really important to keep in mind while stock prices have changed and obviously emotions have changed, fundamentals for the U.S. haven’t changed. Even with China selling sharply and emerging markets selling off, we’re still seeing solid U.S. economic growth.”

Although one market advisor says fear is now in control.

“Fear has taken over. The market topped out last week,” said Adam Sarhan, CEO of Sarhan Capital, told CNBC. “We saw important technical levels break last week. Huge shift in investor psychology.”

The markets were heavily impacted by China’s massive 8.5% decline which sent the market into negative territory for the year.  Other world markets were rocked by the action:  Japan’s Nikkei fell 4.6%, the pan-European Stoxx Europe 600 fell 5.3%, Germany’s DAX fell 4.7% and is now 20% below an April peak.

The Dow had entered what is considered a market correction on Friday, falling 10 percent from a recent peak.

The stock that drew the biggest attention at the market opening today, Apple, rallied from falling below $100 a share to finish at $103.07, just over $2.00 a share lower from Friday’s close.

Ex-Head of Communications for British Treasury Says “Stock Up On Bottled Water”

A former head of communications for the British treasury is telling the public they need to prepare to spend “a month indoors” because of public unrest that will come from a looming economic collapse.

Damian McBride, who served under Prime Minister Gordon Brown, wrote on Twitter after today’s giant Chinese stock market crash:

“Advice on the looming crash, No.1: get hard cash in a safe place now; don’t assume banks & cashpoints will be open, or bank cards will work”

“Crash advice No.2: do you have enough bottled water, tinned goods & other essentials at home to live a month indoors? If not, get shopping.”

“Crash advice No.3: agree a rally point with your loved ones in case transport and communication gets cut off; somewhere you can all head to.”

McBride added that today was the stock market catching up with the terror over defaults that’s been impacting the bond market for the last few months.

McBride’s comments come as the world reels from the Chinese stock market crash and the UK’s FTSE 100 losing 60 billion British pounds in only a few hours, causing the largest one day fall of the market since 2008.  Over the last two weeks the market has lost over 160 billion British pounds.

U.S. Stocks Attempting to Rally after 1,100 Point Plunge

U.S. stock markets are attempting to rally after a massive 1,100 point plunge at the opening of today’s market attributed to the crashing of the Chinese stock market.

After opening to the biggest one day loss in the history of the economy, investors are starting to buy back in an attempt to save the market.  As of noon central time, the Dow has rallied back to 16,325.00, a drop of 134.55 points, or a 0.81% decline.

The massive drop at the opening was attributed to the sell-off in China that has crashed their stock market.  The Shanghai Composite Index fell 8.5 percent, the worst one day fall since October 2007.

The drop was so significant that the official Chinese news agency used the term “Black Monday.”

The drop in China is causing significant amounts of civil disorder.  Millionaires who flew into Shanghai over the weekend for meetings were attacked by crowds as they tried to leave their hotel.  The head of an exchange that trades in metals was captured by angry investors and brought to police as they demanded their money be unfrozen.  Police later released him without charge.

“China is definitely the No. 1 cause for concern globally and Europe is not far behind,” Peter Kenny, chief market strategist at Clearpool Group, told fox Business. “The speed at which this market has moved sharply lower is an indication panic is driving all investment decisions. If you haven’t positioned yourself for volatility and seasonal weakness, you’re behind the 8 ball.”

The selloff in America was driven in the tech sector.  Facebook fell 7% at the opening, Twitter, NetFlix and clean car maker Tesla Motors all tumbled at the start.  Many are rallying through the day.

Historic Drop on Wall Street at Opening Bell

Investors are bracing for an incredibly ugly and volatile day on Wall Street today as China closed to their own version of a “Black Monday” and the Dow dived over 900 points at the opening bell.    Oil Prices plunged below $40 a barrel. At this moment we are down 6% and have lost 1000 points on the DOW.  

Experts agree that the market in China, the uncertainty on the interest rate and the effect of cheap oil are causing this slide.  Many are stating that there must be something more happening to cause this type of market descent.  

China’s market last dropped this low in 2007.  And is down more than 40% in the last two weeks.  This is being called a Market Crash by most of the financial community.  

Jim Bakker & Team Go Live Today at 8:00 AM CT

Due to breaking news in China this morning and what they are calling their “Black Monday”, the Team and I will be going Live on the Internet at http://jimbakkershow.morningsidechurchinc.com/watch-us-live/ and on the PTL Network on ROKU this morning beginning when the stock markets open.   You can also stay tuned all day on our web site at Jimbakkershow.com where we will keep you informed on what we feel will be an incredibly volatile day on the international markets around the world.  

God Bless you!

Jim Bakker   

Dow Hits Market Correction Status

The U.S. stock market took another tumble on Friday, down more than 2 percent thanks in part to a scare in the oil market that saw price hit milestones. The dip of over 450 points sent the Dow Jones Industrial Average (DJIA) into the area called a “market correction.”

The oil market fell below $40 a barrel in trading for the first time since 2009 before rallying to finish at $40.45, down 87 cents on the day. The dip is partially attributed to the problems in China as that nation is the world’s largest energy consumer.

The Dow Jones Industrial Average (DJIA) was down over 470 points in afternoon trading a day after the index finished 358 points lower. The slide on Friday has taken the DJIA more than 10 percent lower than the record high close of 18,312.19 reached on May 19th. This means the Dow is in what is considered a “market correction.”

These are rare happenings with the last one happening in August 2011 when the S&P suffered a 10% correction. In that correction, the S&P hit 19.4% before rebounding to current levels which are still 6.3% off its high.

“Right now there is a feeling of fear in the marketplace and all news is interpreted negatively and it’s interpreted indiscriminately,” said Tom Digenan, head of U.S. equities as UBS Global Asset Management, told CNBC.

The Standard and Poor’s index, already in the red for the year, fell another 1.8%. The NASDAQ fell 1.9%.

Tokyo’s Nikkei 225 index plunged nearly 3% and Hong Kong’s Hang Seng index fell 1.9%.
The Shanghai composite index on mainland China dropped over 4%. MarketWatch noted China’s benchmark index is down 32% since June 12.

China’s Currency Impacts World Markets for Second Day

China’s Central Bank cut the guiding rate for their national currency for the second day in a row, impacting world markets as the Chinese government attempts to boost exports.

Officials with the Central Bank tried to dampen the shockwaves being sent through world markets by saying the day’s move was not part of a sustained devaluation of the Chinese currency.

“Looking at the international and domestic economic situation, currently there is no basis for a sustained depreciation trend for the yuan,” it said in a statement.

The Yuan was down 1% Wednesday after a 1.9% devaluation Tuesday.  The total overall decline is the largest in two decades and comes after Chinese government reports showed exports from the nation fell 8% during July.

The currency is now going to be set based on market forces where it previously had been set solely by the People’s Bank of China alone.

“Greater exchange rate flexibility is important for China as it strives to give market-forces a decisive role in the economy and is rapidly integrating into global financial markets,” the International Monetary Fund said in a statement regarding the Chinese action.

Some U.S. officials were harsh in their comments toward China’s action.

“For years, China has rigged the rules and played games with its currency. Rather than changing their ways, the Chinese government seems to be doubling down,” New York Senator Chuck Schumer told the BBC.

The U.S. Treasury’s response was more neutral.

“We will continue to monitor how these changes are implemented and continue to press China on the pace of its reforms, including additional measures to transition to a market-oriented exchange rate and its stated desire to move towards an economy that is more dependent on domestic demand, which is in China and America’s best interests. Any reversal in reforms would be a troubling development.”

As of noon EST, the Dow Jones Industrial Average was down 160 points and all major markets around the world were lower.