Stock selloff accelerates

[Saguaro]

NEW YORK (CNNMoney.com) -- Stocks fell Monday morning after Citigroup's weak profit report pummeled the financial sector and record-high oil prices raised worries about consumer spending.

The Dow Jones industrial average (Charts) lost around 100 points, 0.8 percent, more than 90 minutes into the session. The S&P 500 (Charts) index lost 0.6 percent. Both indexes hit all-time highs late last week.


The Nasdaq composite (Charts) lost 0.7 percent. The tech-heavy index hit a fresh 6-1/2 year high last week.

U.S. light crude oil for November delivery rose as high as $85.30 a barrel, in record territory, before pulling back a bit. Crude prices ended Friday's session at an all-time high of $83.69 a barrel.

Banks set up debt rescue fund
The quarterly reporting period began on a ho-hum note last week, when Alcoa (Charts, Fortune 500) reported earnings that rose from a year ago, but missed forecasts.

However, this week brings the first big batch of reports, including Yahoo (Charts, Fortune 500), Coca-Cola (Charts, Fortune 500), eBay (Charts, Fortune 500), Pfizer (Charts, Fortune 500) and a slew of banks.

Citigroup (Charts, Fortune 500) got the ball rolling Monday. The biggest U.S. bank reported third-quarter profit dropped 57 percent from a year ago due to $3 billion in writedowns related to the mortgage market fallout.

Citigroup also reported weaker earnings per share of 47 cents, that nonetheless topped analysts' estimates. The stock lost 2.3 percent and dragged on the Dow and other bank shares.

Decliners were broad-based, with 22 out of 30 Dow issues falling, including American Express (Charts, Fortune 500), Caterpillar (Charts, Fortune 500) and General Motors (Charts, Fortune 500).

Spiking oil prices boosted the stocks of oil services firms such as Exxon Mobil (Charts, Fortune 500) and Valero Energy (Charts, Fortune 500), but dragged on airline, railroad and trucker stocks, which are directly dependent on fuel. The Dow Jones Transportation (Charts) average lost 1 percent.

Market breadth was negative. On the New York Stock Exchange, decliners beat advancers two to one as 340 million shares changed hands. On the Nasdaq, losers topped winners by a similar margin on volume of 640 million shares.

Oil tops $85 for the first time
Technology shares jumped Friday after Oracle (Charts, Fortune 500) made a $6.7 billion bid for software maker BEA Systems, but the broader market was more subdued after the major gauges hit record levels during the week.

The NY Empire State index, a regional manufacturing report, rose to 28.8 in October from 14.7 in the previous month. Economists surveyed by Briefing.com thought it would fall to 14.

Treasury prices slipped, raising the yield on the benchmark 10-year note to 4.70 percent from 4.68 percent late Friday. Bond prices and yields move in opposite directions.

In currency trading, the dollar fell versus the euro and gained versus the yen.

COMEX gold for December delivery rose $9 to $762.80 an ounce.

http://money.cnn.com/2007/10/15/markets/markets_0945/index.htm?postversion=2007101511

[April15]

Relax. Just because the dollar is weakening in the world doesn't mean the wealthy will suffer!

[toxic]

Relax. Just because the dollar is weakening in the world doesn't mean the wealthy will suffer!

You are correct. The Hong Kong Hang Seng Stock Exchange is up 30%+ in the last couple months.

Of course, things are getting a little peaky and I'm not recommending entry now.

http://chart.finance.yahoo.com/c/3m/_/_hsi

[Cookie Parker]

I read somewhere that stocks just represent the playground of the wealthy..who make money off investments, as opposed to the average citizen whose retirement is just tied up in it.

However, even with that and my membership in the latter group, the fact that banks are falling cannot be good for OUR economy. As April 15 pointed out, the rich are divested world wide. But for those of us with retirements now entangled in profit and losses of the market, this could be the one thing which requires baby boomers to die on the job.....poop!!

[toxic]

I read somewhere that stocks just represent the playground of the wealthy..who make money off investments, as opposed to the average citizen whose retirement is just tied up in it.

However, even with that and my membership in the latter group, the fact that banks are falling cannot be good for OUR economy. As April 15 pointed out, the rich are divested world wide. But for those of us with retirements now entangled in profit and losses of the market, this could be the one thing which requires baby boomers to die on the job.....poop!!

Yes, it depends where your pension fund puts your money. A while back I wanted to move some to mutual funds that were less based on the US economy. These are some I have invested in.

I bailed out of FLATX when it started that big dip in mid Aug. Notice that it dropped 20% in a few days. I think I was up 12% and just broke even when I got out. If this had been year 2000, they would have continued to fall.

Note, that any time these funds can collapse in sync with US stocks too. Hang Seng is increasing over 1% per day and setting records every day. Often that happens just before everything crashes.

http://stockcharts.com/charts/candleglance.php?FLATX,FSEAX,MCHFX,SSEMX|D

Be careful - I am not recommending.

[Kurtz]

Where's that strong economy bush LIES about? :whistle