Stocks Down Again
Issue: 11/09/07 Friday
The big news today was that the Dow went down 224 points. This is a follow-on from the market falls of the week, and is directly caused by financial results leaking out of our national financial institutions, like today’s announcements from Wachovia and JP Morgan. No know, if all these institutions would just collaborate and come out with the bad news in one day, the market would get a big jolt, but everyone would forget about it the next day, and we could get back to the “good old days” when the market just moved slowly upwards. I bet that is just politically inappropriate, and would look too much like collusion. If you’re tired of these wild gyrations, why don’t you write your stock broker, and tell him to get his Chairman to start collaborating. (just kidding).
The other big news today is that 10 year bonds are now below 4.25%, and have fully discounted the NEXT cut the Fed probably will make in December. My own knowledge of the bond market says that the cut in bond interest rates will go longer and deeper than anyone can predict today. That’s just the way bonds tend to move. A lot of people are using the “R” word, and it’s driving a very negative emotion throughout most markets.
All other markets just marked time today. The Euro seems stuck in its current trading range, but that didn’t stop the Yen from making a new high, and making a dramatic move.
Here are Friday’s closing details:
DJ30 – 13,043 (Down 224 points)
10 year US Treasury Bond – 4.23% (Down 0.05%)
Euro 1.4681 – a new high
Gold closed at $835 per ounce. (Down $3)
Oil Closed at $96.32 (Up 0.86)
Gasoline is $2.42 (Down $.02)
