[Juggs]

WTF is going on? Holy crap some of my stocks got killed..... glad its not too big of a loss for me but anyone investing in asia just got creamed :mad:

[ehhhwik]

yea, Canada's TSX is down 350 points too, FU*K!!!

investors in China are dumping their stocks like crazy for some reason and decline in commodity prices

[Chesmu]

dow's down 300ish now.

computer driven sell programs kicked in around 2pm NYSE time and drove the prices WAY down. There's a little recovery now.

Me thinks the fed will drop interest rates next meeting!

[MoreCowbell]

My money is in the Money Market waiting to buy an apartment.

Good Times.

[cdheaven]

U.S. Stocks Tumble Most Since 2002 on China Plunge, Orders Drop

By Eric Martin

Feb. 27 (Bloomberg) -- U.S. stocks tumbled the most since September 2002 as a plunge in Chinese shares sparked a global selloff and raised concern that investors will dump equities after a four-year bull market.

The declines, compounded by a slide in demand for U.S. business equipment, wiped out the year-to-date gains in the Dow Jones Industrial Average and Standard & Poor's 500 Index. The Nasdaq Composite Index also headed for its steepest drop since July 2002. Only two companies in the S&P 500 rose and every one of the Dow's 30 members retreated, led by Alcoa Inc. and Caterpillar Inc., companies that depend on demand from China.

Europe's Dow Jones Stoxx 600 Index slid 3 percent and emerging markets dropped. Russian shares fell from an all-time high, while Brazil's Bovespa Index sank 7.8 percent. U.S. Treasuries rose on increased demand for debt securities amid the worldwide equity slump and signs of a slowing economy after durable-goods orders fell more than forecast in January.

``Any force that works against global economic expansion is a negative,'' said Liam Dalton, who oversees $1.2 billion as chief executive officer of Axiom Capital Management in New York. ``The big straw on the camel's back is this China issue.''

The S&P 500 retreated 47.05, or 3.3 percent, to 1402.32 as of 3:15 p.m. in New York after earlier losing as much as 4.1 percent. The Dow average sank 409.93, or 3.3 percent, to 12,222.33. It earlier fell as much as 546.2 points, or 4.3 percent. The Nasdaq dropped 90.73, or 3.6 percent, to 2413.79.

Chinese Measures

China's government approved a special task force to clamp down on illegal share offerings and investments with borrowed money after indexes climbed to records. The Shanghai and Shenzhen 300 Index dropped 9.2 percent, wiping out $107.8 billion from a stock market that doubled in the past year.

``The Chinese market getting banged for 9 percent last night is only going to have a negative impact for markets across the world,'' said Michael Driscoll, a trader at Bear Stearns & Co. in New York. ``People in the U.S. have been anxiously awaiting a pullback. That may become self-fulfilling at some point.''

An indicator that measures the rate of expected stock-market swings rose the most since at least November 1991. The Chicago Board Options Exchange SPX Volatility Index, known as the VIX, surged 66 percent as investors anticipated more risk in owning stocks.

More than 67 stocks fell for every one that rose on the New York Stock Exchange. Some 1.86 billion shares changed hands on the Big Board, 77 percent more than the same time a week ago.

Alcoa

Alcoa, the world's biggest aluminum producer, tumbled $2.07 to $33.29. China is the leading consumer of the metal. Copper miner Freeport-McMoRan Copper & Gold Inc. fell $5.56 to $56.36 on expectations of decreased demand from China, also the biggest user of that metal.

A measure of raw-materials producers slumped 5.3 percent for the worst performance among 10 industry groups in the S&P 500.

Caterpillar, the biggest maker of earthmoving equipment, fell $3.50 to $63.76.

Lehman Brothers Holdings Inc. and Goldman Sachs Group Inc. extended their losses to a fifth day as a pullback in global equities threatens brokerages' earnings prospects, which are already hurt by an increase in mortgage defaults.

Lehman Brothers, the fourth-biggest U.S. securities firm by market value, dropped $4.30 to $73.53. No. 1 Goldman Sachs declined $14.25 to $199.75, while Morgan Stanley, the second largest, fell $3.89 to $74.63.

China's stock market drop is a concern because U.S. securities firms have become more reliant on growth in international markets, including Asia. At the same time, the weakening U.S. home loan market will reduce brokers' revenue from underwriting securities backed by mortgages.

Durable Goods Orders

The Commerce Department said orders placed with U.S. factories for durable goods slumped 7.8 percent following a 2.8 percent gain in December. Orders excluding transportation equipment slid 3.1 percent.

The figures suggest reluctance among companies to invest has carried into 2007. Bloated stockpiles at auto dealers and construction-equipment makers may restrain production early this year, Federal Reserve Chairman Ben S. Bernanke told Congress this month.

``With some potential signs of cracks, be it China or the durable goods orders, this might be setting us up for a cooling or a pullback in the market,'' said Jason Cooper, who helps manage $2.5 billion at 1st Source Investment Advisors in South Bend, Indiana. ``I'm much more bearish than bullish right now.''

Qualcomm, IBM

Qualcomm Inc., the world's second-biggest maker of chips that run mobile phones, lost $1.87 to $40.78. Chief Executive Officer Paul Jacobs last year said the company expects a ``huge market'' for advanced devices in China. International Business Machines Corp., which owns about an 11 percent stake in China's Lenovo Group Ltd., dropped $2.65 to $94.26.

NYSE Group Inc. slid $4.81 to $85.20. JPMorgan downgraded the owner of the world's largest stock exchange to ``underweight'' from ``neutral,'' citing an issuance of stock to Euronext NV shareholders. NYSE is preparing to complete the purchase of Euronext, which will create the first trans-Atlantic equity market. About 110 million new NYSE shares will be issued as part of the merger, JPMorgan said.

Advanced Micro, IBM

Advanced Micro Devices Inc. slid 66 cents to $15.02 and Intel Corp. declined 67 cents to $20.18. Sales of low-end server systems slowed markedly last quarter, the Wall Street Journal reported, citing two research firms.

Although the research differed on details and reasons, both showed a slowdown in sales of x86 servers, which take their name from the chip technology used by the companies, the WSJ said.

Apple Inc. fell $4.07 to $84.58. The company delayed the release of Apple TV and said the set-top box for displaying digital video on widescreen televisions won't be available until mid-March.

RadioShack Corp. rallied $2.59, or 12 percent, to $25.04 for the steepest gain in the S&P 500. The third-largest U.S. electronics retailer said fourth-quarter earnings jumped 65 percent after it closed stores and eliminated jobs. The company forecast a 2007 profit of $1 to $1.20 a share, more than the average analyst estimate of 90 cents in a Bloomberg survey.

Brocade Communications Systems Inc. surged 29 cents to $8.98. The largest maker of switches for data-storage networks said fiscal first-quarter profit excluding some items was 17 cents a share, topping the 13-cent average analyst estimate in a Bloomberg survey. The stock was raised to ``buy'' from ``neutral'' at Goldman, Sachs & Co. and to ``outperform'' from ``peer perform'' at Bear, Stearns & Co.

To contact the reporter on this story: Eric Martin in New York at emartin21@bloomberg.net .
Last Updated: February 27, 2007 15:16 EST

[cdheaven]

sorry for the long post and the double post but i JUST opened a stock account FINALLY this week. so this is probably all my fault

[MoreCowbell]

Originally Posted by cdheaven

sorry for the long post and the double post but i JUST opened a stock account FINALLY this week. so this is probably all my fault

You're walking around blind without a cane, pal. A fool and his money are lucky enough to get together in the first place. You are a sheep, and sheep get slaughtered.

[ehhhwik]

Originally Posted by gluck75

You're walking around blind without a cane, pal. A fool and his money are lucky enough to get together in the first place. You are a sheep, and sheep get slaughtered.

i just think the markets in China are just adjusting themselves, i mean a market that doubled in the last year definitely is caused by investors, i am sure eventually the markets will go back up after investors has digested the results and make the markets active again

[Chesmu]

Originally Posted by gluck75

My money is in the Money Market waiting to buy an apartment.

Good Times.

put it in a CD instead....

[MoreCowbell]

Originally Posted by Chesmu

put it in a CD instead....

Difference is only like 50 bp's. Plus, I need the cash because I could put a deposit on an apartment at any moment.

Also, other than CD's...check out Treasurydirect.gov. That gives you the best return, I have found.

[Agni]

I so saw this comming!
I mean come on DOW was nearing 13,000, just end of last year it was below 12,000.
I sold off my stocks be4 this plunge, knowing that a market correction was imminent.
This could be a good buying opportunity.:rocks:

Market correction just waiting to happen, it just need something to spark it off.
And that something was China.

[MoreCowbell]

Originally Posted by Agni

I so saw this comming!

I mean come on DOW was nearing 13,000, just end of last year it was below 12,000.

I sold off my stocks be4 this plunge, knowing that a market correction was imminent.

This could be a good buying opportunity.:rocks:

You sell everything and sit on the sidelines for 3 months to make a return in ONE DAY??? You are STILL under water from that move.

Have a plan or you will get ass-raped every time!!!

[Agni]

Originally Posted by gluck75

You sell everything and sit on the sidelines for 3 months to make a return in ONE DAY??? You are STILL under water from that move.

Have a plan or you will get ass-raped every time!!!

No no, I bought all my stocks last summer in July. I had the largest investment in Apple. I sold it off in Jan for $93.
But I had other stocks like ERTS, ttwo, gme, BRLC.
For tech stocks this isnt the best time to be in them anyways.

I decided to sell them becuase i knew a downturn is probably comming.
I will buy in again, when the time is right.

[teknochild]

bastards, a lot of the stocks i have are family stocks passed down generations with cost basis's of like 0, i envy those who can just get out and re enter when they feel like it

[MoreCowbell]

Originally Posted by teknochild

bastards, a lot of the stocks i have are family stocks passed down generations with cost basis's of like 0, i envy those who can just get out and re enter when they feel like it

Uh-Huh...what horrible luck you have. We all weep for you.

[teknochild]

Originally Posted by gluck75

Uh-Huh...what horrible luck you have. We all weep for you.

[TommyBahama]

this is the opening stages of China's attack on the US and the rest of the western world, ive been saying it for a years now. China will first cripple our economy then send waves of foot soliders to kill us all.

i predict that by this time next week we will be eraseing the white and blue from our flags.

[MoreCowbell]

Originally Posted by TommyBahama

this is the opening stages of China's attack on the US and the rest of the western world, ive been saying it for a years now. China will first cripple our economy then send waves of foot soliders to kill us all.

i predict that by this time next week we will be eraseing the white and blue from our flags.

Lay off the Dim Sum Bro.

[teknochild]

Originally Posted by TommyBahama

this is the opening stages of China's attack on the US and the rest of the western world, ive been saying it for a years now. China will first cripple our economy then send waves of foot soliders to kill us all.

i predict that by this time next week we will be eraseing the white and blue from our flags.

no, the one thing we are good at is taking care of a full on assault, thats what our armed forces are set up for (which is why we fail so much in iraq) if we actually have a target we can obliterate it

then again the chinese could pull a russian on us and just send 50k against 5k

[shragon]

Originally Posted by gluck75

Lay off the Dim Sum Bro.

[DFW_M]

missed one day at work and the stock crashes...

I am just not sure why it went as high a it did past 24 months... Definitely inflated at this point...

[ehhhwik]

China currently has over 1 TRILLION US dollars in its reserves (most of it came from trade surpluses with the US), if China decides to "attack" America, it would be easy, just release a large portion of that US currency and the US dollar will immediately become worthless