Stocks opened lower today as investors returned from a long-weekend layoff to face a market sliding deeper into the red. The cause of the sell-off once again stems from fear that the European Union's financial turmoil may be worsening. The flight to safety theme took full effect as European investors lose confidence in financial stocks in the region. In the U.S., the Dow Jones Industrial Average, S&P 500, and NASDAQ were all down as much as 3 percent at one point, but have managed to recoup some of those losses. With September historically being the worst month in stock market performance, investors should be able to expect more volatility and a probable move lower if economic conditions do not improve drastically. President Barack Obama is expected to make a speech detailing his jobs growth proposal on Thursday, but has already laid the groundwork by warning Republicans that he will hold them accountable if they do not support his plan to rebuild the U.S.'s anemic job market and economy. Oil prices dipped over 2 percent today, as has been the trend when the overall market is hit by bad news, as is trading at around $84 a barrel. Gold has remained relatively flat today at $1,880, however.
Major U.S. Stock Indices
DJIA: 11,031.22 (-1.86 percent)
S&P 500: 1,152.83 (-1.80 percent)
NASDAQ: 2,438.28 (-1.79 percent)
Russell 2000: 671.41 (-1.75 percent)
In other news:
- From a technical standpoint, investors have to brace for more pain in the near future as stocks fell through major support levels. [Marketwatch]
- This is interesting: Dunkin' Donuts (DNKN) was initiated with a Sell rating by Goldman Sachs (GS), one of the company's underwriters for its IPO. [Bloomberg]
- Is this the wrong time for the government to make a stand against major banks? An analysts says the move to discipline or punish financial institutions now could seal the fate of a U.S. recession. [CNBC]
- Carlyle Group, one of the largest private equity firms on Wall Street, is planning to go public in 2012. The firm plans to raise at least $100 million, and would join many of its peers like The Blackstone Group (BX), Fortress Investment Group LLC (FIG), and Kohlberg Kravis Roberts & Co. (KKR). [WSJ]
- The Swiss franc, along with gold, is considered one of the safest investments during times of economic turmoil, but massive purchases of the currency could do long-term damage to the Swiss economy. To counter, the Swiss central bank is pledging to weaken its currency. [Bloomberg]
Check back for more news.
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