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Subscribe to RSSWall Street stumbled on Thursday after JP Morgan reported tepid quarterly earnings and on fears of a global slowdown in China.
Another lackluster report on the labor market also dragged stocks down.
In afternoon trading, the Dow Jones industrial average fell 106 points, or 0.93 percent, to 11,412.14. JPMorgan Chase & Co. was down 6.78 percent, the biggest loser of the 30 companies that make up the Dow. Shares of Citigroup, Morgan Stanley and Bank of America also took a beating.
The broader S&P 500 fell 12.70 points, or 1.05 percent, to 1,194.55 and the tech-heavy Nasdaq dipped 5.44 points, or 0.21 percent, to 2,599.29.
The Associated Press reports:
JPMorgan is the first big U.S. bank to announce quarterly results. Next week Wells Fargo & Co., Citigroup Inc. and Morgan Stanley will report. JPMorgan is considered one of the industry's leaders, so their results don't bode well for other financial companies, said Jason Lilly, a portfolio manager at Rockland Trust Investment Management Group.
JPMorgan's net income fell 4 percent in the July-September period. Fees from investment banking dropped 31 percent because of severe turbulence in financial markets this summer. The bank said it was concerned about the ability of consumers and businesses to manage their debts.
Troubles in China are also contributing to the stock slump. According to the New York Times:
China’s trade surplus narrowed for a second straight month in September, suggesting further cooling in the Chinese and global economies. The country’s trade surplus fell to $17.8 billion in August, well below July’s 30-month high of $31.5 billion, largely on the back of lower export growth — a sign that the stalling global economic recovery is could weigh on China’s elevated economic growth.
And yet another drag on stocks was a flat reading on the labor market. As msnbc.com’s Pat Rizzo reported earlier today:
About as many Americans filed new claims for unemployment benefits in the latest week as did so the previous week, revealing a labor market idling in neutral.
The Labor Department reported Thursday that seasonally adjusted initial claims came in at 404,000, down 1,000 from a revised 405,000 for the previous week.
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Like that idea, would cure his health concerns and save us some tax dollars. After all big money hates Obama care and loves to deficit reduction.
If another lackluster labor report contributed to the "tumble" then we can count on the market to "tumble" every Thursday until this administration is out of office.
No, its actually time to take your profits and wait for a few days. Its like playing the slot machines when you move on after you hit a jack pot.
Wait, quasi-socialist? First you people accuse him of being just like Bush, now he's quasi-socialist? Which is it?
By the way, "cashing in" your stocks while they're low is exactly what contributes to a failing economy and will only lose you money in the long run. You must work on Wall Street.
Ralphieeeee...time for your move to Costa Rica! Bon Voyage! tick, tock, tick, tock..;-)
precededbynone let me clarify, Chairman ObaMAO isn't a quasi-socialist, he's a straight up Communist, plain and simple but your idol will show his true colors soon enough so that even his loyal followers like yourself can't help but see the truth. I was however smart enough to invest my money in US Can, I've tried gold soup before and found it to be somewhat lacking.
Amazing. I think President Obama is at best an average President in bad times. He has demonstrated poor leadership skills on multiple occasions. But despite all of that there actually people who believe he is an actual Communist? Do you even know what the word means? It is absolutely stunning how thoroughly obtuse you are. Your pollution of the gene pool is a continued source of stress on our civilization. So frustrating.
Oh really? Care to elaborate? Can't you just dislike or even despise the guy without over-spewing rhetoric that's not based on ONE single fact? If you want to argue against his policies, fine. But no one is ever going to take you, the Republican Party, or your "idols" like Perry seriously if you don't stop the diatribe and get back to common sense and maybe, just MAYBE, offer some reasonable solutions of your own. While the rest of the country is worried about jobs, your party is hard at work on anti-abortion legislation. Realllllll effective.
After you outline exactly how Obama is a communist, maybe you would care to share with the class how the Republicans could have possibly done any better since 2008 had they won the office, since they have yet to propose any ideas of their own but have been sure to fire down anything Obama suggests and argue about his birth certificate, simply because they see your useless "communist" rhetoric as a reasonable point of dispute and can't seem to wrap their heads around anything resembling reasonable facts.
When will the price of gas go down instead of up? The price per barrel is around$85.00 in the US. If you want to spur the economy, make gas around $2.75 a gallon and see what happens. It is a crying shame that the big oil companies continue to show record profits(in the Billions) while the hard working people suffer from the cost of filling their tanks to go to work. Think about it!
Some one has to pay for the oil spill. BP needs to recoup their loses, geez.
Easy answer on the gas price, never. As long as people are dense enough to drive their SUV's to the same store three times in the same day they would be stupid to lower the price.
Come on 40 points and the headline is STOCKS TUMBLE?
The stock market has no bearing on where we are as a country. It is people with mopney with no where to go. Gamblers no different than Las Vegas. Why are they putting money in the stock market? Where else can you go? Gov bonds 10 yrs a 1%, CD @ 1/2 %, Foreign bonds like Greece, Portugal, Italy, etc. Foreign banks, the euro.
A 40 point drop isn't a "tumble".
It is amazing to me to still see oil prices so high with world demand so low. It must be China and India pulling up prices. Prices cannot remain at this level much longer, eventually they are going to crash.
Oil is priced in dollars,one more round of QE and $5.00 a gallon will be the norm.
MR. Lovell - you make sense. I wish you could rally the rest of your party to use common sense.
I wish these news-nit-wits would moderate their language! They should use "Up" or "Down" only! Unless they are economic pundits, they should not use tumble, crash, steep drop, or for that matter, any adjectives! I frankly don't care what they say, my investments are solely mine to worry about.
Stocks tumble???? The market was down about 40 points....less than one half of one percent. This is news?????????
Go ahead buy buy buy buy.!! This is a sucker rally. Europe is still a bailout and demand in the economy is horrible. Things are slow at a lot of businesses. I am starting to wonder who these buyers are.
I believe that should be "common sense rules" but then I forgot, it's Wall Street. Below 8000 would make for a nice day tomorrow and, save the bull$hit about how the world will end if the rich go broke, it already has for many of us that were stupid enough to do the right thing and earn our money by working for it and, no, spending daddy's trust fund doesn't count as working.