What bad news did you want first? Expect the Dow index to give up the week's remaining gains today -- stock futures indicate Thursday's 387-point plummet isn't finished.Goldman Sachs (NYSE: GS) fell overseas on reports that its North American Equity Opportunities fund has dropped more than 15 percent this year, compounding worries about GS' Global Alpha fund.
The Wall Street Journal reports that SEC regulators are reviewing the books at Goldman Sachs, Merrill Lynch (NYSE: MER) and other top brokerage firms and banks, digging for unreported losses stemming from the subprime mortgage meltdown.
The Federal Reserve and its European and Japanese counterparts all injected huge sums into their financial systems Thursday and Friday in response to the ongoing credit turmoil.
Companies reporting earnings Friday include satellite television provider EchoStar Communications (NASDAQ: DISH) and contact lens maker Bausch & Lomb (NYSE: BOL).
Japan's Nikkei average led the losses overseas, dropping 2.4%, its steepest loss since mid-March. The Dow's setback echoed throughout Europe, sending the French CAC 2% lower, London's FTSE 1.9% lower, and Germany's DAX down 1.6%.
Corporate news
Speculation that Barclays Plc (NYSE: BCS) will back out of the unprecedented banking takeover of ABN Amro Holding NV (NYSE: ABN) sent ABN shares down 4.8% overseas.
Before the bell: Stocks ready for a lower open after reaching 13-month highs
Ray of light: U.S. temp worker hiring increased by 34k in October
Goldman Sachs CEO Lloyd Blankfein pulls a Jeff Skilling in an interview
Reader Comments (Page 1 of 1)
8-10-2007 @ 9:47AM
N Langwiser said...
When it rains it pours and the good stuff gets hammered along with the bad. People do stupid things all the time, it's too bad the rest of us have to suffer for their stupidity
8-10-2007 @ 12:14PM
ED DUMAZ said...
LIKE BEFORE AND IT WILL HAPPEN AGAIN. THE DJI LONG 30 YR. CYCLE IS ON THE MONEY AND IN TIME FOR THIS DROP, LIKE ALL IN THE PAST. TOO BAD NO ONE TRADES WITH THESE CYCLES. IF ENTIRE 3 YR RUN IS RETRACED IT COULD GO TO 12K. KEEP HOPING. MAYBE YOU GUYS SHOULD LISTEN TO THE OLD TIMERS- SELL IN MAY AND GO AWAY............
8-10-2007 @ 12:52PM
Warren said...
"SELL IN MAY AND GO AWAY."
Incur transactions costs to get out and then incur transaction costs to get back in. Sounds horrible. Why wouldn't you just hold?
8-10-2007 @ 2:55PM
Robert said...
This too will pass.
It's an excellent buy opportunity for value contrarians that the market has this correction. It's been long overdue.
8-10-2007 @ 3:33PM
Worried said...
I just put money in the market in April; then again last week. Now this scares me to death because I was warned by my sister not to put it into the market.
I know my broker will be calling saying "this is a good time to get in".......however, I believe I will put the remainder of my money in a saving's account which will give me 5.44% every month!
8-10-2007 @ 4:59PM
John Lysek said...
With earnings up 8% year over year, but stock prices up 30% year over year at some point rationality will return to the markets. Anyone buying stocks in the hopes of a takeover or stock buyback on borrowed money would likely also invest in tulip bulbs.
8-10-2007 @ 6:54PM
RAY said...
We are tacking a hit as small investors but at least this time greedy wall street is getting pounded, There is justice.
8-10-2007 @ 7:08PM
RDJ said...
When the Fed intervenes that just causes concern and more panic. The very worse thing they could do is lower interest rates prior to the next scheduled meeting.
8-11-2007 @ 1:56PM
RDJ said...
The Fed needs to stay out, because they're adding to the already wide spread panic!