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(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.) * 2-year, 10-year Treasury yields invert for 1st time in 12 yrs * * Dow sees biggest one-day drop since October * Macy's (M) slides after cutting outlook; weighs on rivals * Indexes drop: Dow 3.05%, S&P 2.93%, Nasdaq 3.02% (Updates to market close) By All three major U.S. indexes closed down about 3%, with the blue-chip Dow posting its biggest one-day point drop since October after 2-year Treasury yields surpassed those of 10-year bonds, which is considered a classic recession signal. Dire economic data from "It was all negative and not much positive today," said
"It's a reactionary market right now and probably will
continue to be," Carlson added. "My guess is we're probably in
for this until after Wednesday was the first time that yields for 2-year and
10-year Treasuries had inverted since The U.S. yield curve has inverted before every recession in the past 50 years. "It could be different this time," Carlson said. "When
you've got "Even if it is accurate in foreshadowing a recession, that doesn't mean it's coming tomorrow," he added. The CBOE volatility index, a gauge of investor anxiety, jumped 4.58 points to 22.10. The Dow Jones Industrial Average fell 800.49 points, or 3.05%, to 25,479.42, the S&P 500 lost 85.72 points, or 2.93%, to 2,840.6, and the Nasdaq Composite dropped 242.42 points, or 3.02%, to 7,773.94. Over 300 of the S&P 500's components are down 10% or more from their 52-week highs, according to Refinitiv data. More than 180 of those stocks have fallen more than 20% from their 52-week highs, putting them in bear market territory. All of the 11 major sectors in the S&P 500 closed in negative territory, with energy, financials, materials, consumer discretionary and communications services all falling 3% or more. Interest rate-sensitive banks tumbled 4.3%. Macy's Inc's (M) shares plunged 13.2% after the department store operator missed quarterly profit estimates and cut its full-year earnings estimates. Rival department store operators Nordstrom Inc (JWN) and Kohls Corp slid 10.6% and 11.0%, respectively. A U.S. House of Representatives oversight panel called on Mylan NV (MYL) and Teva Pharmaceutical Industries Ltd (TEVA) to turn over documents as part of a review into generic drug price increases. Mylan fell 8.5% while U.S.-listed Teva shares dipped 10.5%. Facebook Inc (FB) slid 4.6% on news that the European Union's lead regulator is investigating how the social media company handled data during the manual transcription of users' audio recordings. Declining issues outnumbered advancing ones on the NYSE by a 4.44-to-1 ratio; on Nasdaq, a 5.33-to-1 ratio favored decliners. The S&P 500 posted eight new 52-week highs and 51 new lows; the Nasdaq Composite recorded 23 new highs and 282 new lows. Volume on U.S. exchanges was 8.68 billion shares, compared
with the 7.47 billion average over the last 20 trading days.
(Reporting by
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