As usual, the market is a frenzied place. This week has been pretty intense. The Dow is down 200 today and was down 200 yesterday (6-19-2013). It was up Monday and Tuesday so we'll see what Friday brings.
Today (6-20-2013)
Gold plunging, BELOW $1,300 per ounce
Silver DOWN more than $2.00 per ounce
Oil DOWN over $2.00 per barrel
Read the rest here: http://online.wsj.com/article/SB100...640502700.html?mod=WSJ_Markets_LEFTTopStories
Today (6-20-2013)
Gold plunging, BELOW $1,300 per ounce
Silver DOWN more than $2.00 per ounce
Oil DOWN over $2.00 per barrel
The Wall Street Journal
Worries about China and the Federal Reserve's plans rattled global markets for a second day, sending U.S. stocks to their biggest loss this year and hammering bonds and many commodities.
Global markets writhed Thursday, with stock and bond prices slumping in heavy trading and the dollar rallying, as investors prepared for eventual reductions in Federal Reserve bond-purchase programs. Jon Hilsenrath reports.
The Dow Jones Industrial Average dropped 353.87 points, or 2.34%, to 14758.32, on big volume, marking its first back-to-back decline of 200 points or more since Nov. 1, 2011. Yields on Treasurys hit their highest since August 2011 as bond prices fell. Shares of home builders sank, reflecting fears that rising mortgage rates could damage the U.S. housing recovery, viewed as a key cog in any broader economic recovery.
The turmoil exposed vulnerabilities in the financial markets and the world economy that had been mostly ignored because central banks were willing to ride to the rescue with huge amounts of money.
Investors said Thursday they were buffeted by two distinct forces: worries about the health of China's economy and financial sector, and the prospect that the end of Fed stimulus could reverse the huge rally in assets ranging from "junk" bonds to dividend-paying stocks. Gains in many of those assets had been fueled by ultralow interest rates and expectations that the Fed would continue to pump money into financial markets.
The rout underscored persistent worry about the health of the global economy at a time when the U.S. and Europe are struggling with high unemployment. Adding to the wrenching action is a cash squeeze in China, which is trying to tighten the spigot on credit without causing problems, and a report that financing for cash-strapped Greece could be in danger.
The declines came a day after Fed Chairman Ben Bernanke said that the central bank expects to begin to pare its huge bond-buying program later this year and it could end sometime next year, provided the economy unfolds as the Fed expects. The prospect of the Fed weaning the economy off extraordinarily easy credit at a time when the pace of U.S. economic growth is modest and inflation is below the Fed's target jolted markets around the world.
Read the rest here: http://online.wsj.com/article/SB100...640502700.html?mod=WSJ_Markets_LEFTTopStories
