Stocks drop for 3rd day: Dow down more than 200

Stocks tumbled Thursday with the Dow falling more than 200 points as Wall Street faces a third straight day of losses. The blue-chip index took a hit from Caterpillar (CAT) after the company announced it would be cutting up to 5,000 jobs by the end of 2016 and could potentially shed up to 10,000 workers by the end of 2018. Shares plunged more than 7%. The Dow Jones industrial average, which has closed lower four of the past five trading sessions, is down 1.3% in  afternoon trading. The Standard & Poor’s 500 stock index dropped 1.2% and the Nasdaq composite index slid 1.4%.the-percentage-of-americans-playing-the-stock-market-is-at-an-all-time-low

Investors  continue to grapple with a host of negatives, including the stock market’s inability to muster any signs of a lasting bounce, Volkswagen’s emissions crisis and persistent worries over interest rates and China’s economic slowdown. Heading into today’s trading session the Dow was deep in correction territory, down 11.1% from its May 19 record high. The S&P 500 and Nasdaq, both off around 9% from their recent peaks, are also in danger of falling back into correction mode.

“Nothing good to report,” is the way Gary Kaltbaum, president of Kaltbaum Capital Management, described the market’s current prognosis in a note to clients. Yesterday was a blah day on Wall Street, with the Dow tumbling 51 points, and there’s little sign that the market — at least now — is ready to suddenly bounce sharply higher, Kaltbaum says. “When the markets are in trouble, when the markets have recently sold off again and when the markets are a little bit oversold, one would at least expect some energy to the upside. Nothing doing,” he told clients. “And when there is nothing doing, it tells us lower prices have still not enticed the big boys, thus even lower prices are in the offing.”

Investors will also be watching a speech today on inflation and monetary policy by Federal Reserve chair Janet Yellen. But the speech is scheduled for 5 p.m. ET, or after today’s market close. The Fed, which opted not to hike short-term interest rates last week, has policy meetings in October and December.


February 2018
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