STOCK MARKET IS NOT THE ECONOMY

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joe2baba
Status: Martenson Brigade Member (Offline)
Joined: Jun 17 2008
Posts: 807
STOCK MARKET IS NOT THE ECONOMY

FINALLY SOMEBODY ADMITTED IT.

investors are now focused on the economy imagine that.

soros is testifying that we should leave the hedge funds alone.

HE DOES NOT WANT ANYONE LOOKING INTO THE BLACK BOX.

WHY??????????????????????????????????????????????????????

someone please tell me just what it is that hedge funds contribute to the economy.

JUST WHAT DOES COME  AFTER SURREAL?




Stocks retreat as investors refocus on economy
 

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Nov 14, 11:15 AM (ET)

By JOE BEL BRUNO and SARA LEPRO
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NEW YORK (AP) - Wall Street retreated Friday from the previous
session's big gains as investors digested more downbeat economic news
and took little comfort from hints from that another interest rate cut
might be possible. The Dow Jones industrials fell nearly 250 points.

Some retrenchment was to be expected after such a big advance, in which
the Dow rallied more than 550 points after falling near its lows for
the year.

"We're trying to test new lows," said James Cox, managing partner at
Harris Financial Group in Richmond, Va. "Obviously yesterday we had a
successful test, and I think we're going to have another run at it
today."

But there was also plenty of discouraging news for investors to focus
on, including comments from Federal Reserve Chairman Ben Bernanke that
the markets remain under "severe strain" and a sobering report on
October retail sales.

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The Fed chief said during a speech in Frankfurt, Germany, that he would
work closely with other central banks to try to alleviate the global
financial crisis and left open the door to a fresh interest rate cut.
The Fed is scheduled to meet Dec. 16 at its last regularly scheduled
meeting this year.

Meanwhile, the Commerce Department reported that retail sales plunged
by the largest amount on record in October as consumers cut back on
spending in the wake of the financial crisis. Retail sales fell by 2.8
percent last month, surpassing the old mark of a 2.65 percent drop in
November 2001 in the wake of the terrorist attacks that year.

The market got more disappointing consumer news from retailers Abercrombie & Fitch Co. (ANF)
and JCPenney Co. Both warned that profits will come in below Wall
Street's already lowered projections as retailers head into a holiday
shopping season that could be among the slowest on record.

The great fear on the Street is that Americans' reluctance to spend
will extend what is already a serious economic downturn. A stream of
negative consumer news sent stocks tumbling earlier in the week.

There was also disquieting news from the tech sector. Sun Microsystems Inc. (JAVA)
said it will cut up to 6,000 workers, or about 18 percent of global
staff, as part of a massive restructuring plan. And handset maker Nokia
Corp. (NOK) warned the global economic slowdown will weigh on sales next year.

In midmorning trading, the Dow tumbled 247.14, or 2.80 percent, to 8,588.11.

The Standard & Poor's 500 index dropped 30.17, or 3.31 percent, to
881.12, and the Nasdaq composite index stumbled 58.63, or 3.67 percent,
to 1,538.07.

The Russell 2000 index of smaller companies fell 20.91, or 4.26 percent, to 470.32.

Declining issues outpaced advancers by about 4 to 1 on the New York
Stock Exchange, where volume came to a light 266.70 million shares.

On Thursday, the Dow's surge was the third-largest single-session point
gain on record, following the 889-point rise on Oct. 28 and the
936-point surge on Oct. 13. The rally came after three days of selling
that wiped out about $1 trillion in shareholder value.

Wall Street's violent swings in recent weeks are part of the market's
ongoing "bottoming" process, analysts say, in which the market retests
multiyear lows hit last month. The market is expected to remain
volatile for some time - as evidenced by past recoveries from a bear
market.

Some analysts said investors were positioning themselves ahead of a
meeting of Group of 20 international leaders in Washington this
weekend. The meeting could bring decisions on how to help the troubled
global financial system.

Government bond prices rose as investors looked for safety. The
three-month Treasury bill's yield fell to 0.14 percent from 0.20
percent late Thursday, and the yield on the benchmark 10-year Treasury
note fell to 3.72 percent from 3.85 percent late Thursday. Lower yields
indicate higher demand.

Meanwhile, the price of a barrel of light, sweet crude fell $1.63 to
$56.61 a barrel on the New York Mercantile Exchange. Oil, which has
dropped to the lowest levels since January 2007, has been falling for
the same reason as stocks - the fear of a deep global recession.

In corporate news, Ford Motor Co. (F) and General Motors Corp. (GM)
will be in focus as Senate Democrats pressed ahead with plans to vote
next week on a $25 billion emergency loan plan. The bailout, which
still faces strong GOP opposition, could come before Congress on Monday.

Ford shares fell 6 cents, or 3.1 percent, to $1.84. General Motors shares added 5 cents to $3.

Citigroup Inc. (C)
is cutting at least 10,000 jobs in its investment bank and other areas
globally, The Wall Street Journal said Friday, citing people familiar
with the matter. Citigroup shares gained 11 cents to $9.56.

Shares of major retailers fell. JCPenney lost 93 cents, or 4.8 percent,
to $18.35. Abercrombie & Fitch tumbled $1.94, or 8.7 percent, to
$20.50.

The dollar rose against other major currencies. Gold prices also rose.

Overseas, Japan's Nikkei closed up 2.72 percent and Hong Kong Hang Seng
rose 2.43 percent. In European trading, London's FTSE 100 was up 3.25
percent, Germany's DAX rose 3.51 percent, and France's CAC-40 added
3.07 percent.

PS THE POST OFFICE IS LAYING OFF 40,000 WORKERS. THIS IS THE FIRST LAYOFF IN  THE HISTORY OF THE POST OFFICE

 

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