Market DispatchesMarket Dispatches

Stocks tumble as ECB disappoints traders

The central bank's chief outlines possible steps to stabilize stressed eurozone borrowing costs. The euro weakens as Spanish and Italian bond yields climb. US jobless claims rise. Factory orders slip.

By TheStreet Staff Aug 2, 2012 9:12AM
EuropeUpdated at 11:50 a.m. ET


By Andrea Tse and wire reports

 

Stocks fell Thursday on disappointment that the European Central Bank's latest policy announcement lacked any strong signal on stimulus action.

 

The Dow Jones Industrial Average ($INDU) was down 142 points at 12,829. The S&P 500 ($INX) was down 16 points at 1,359. The Nasdaq Composite ($COMPX) was down 19 points at 2,901.

 

ECB President Mario Draghi said at a press conference after the ECB meeting that policymakers may undertake outright open-market operations, may push ahead with fiscal consolidation and  may consider undertaking further nonstandard measures as economic growth in the eurozone remains weak. He said the current high sovereign bond yields are unacceptable.

 

The euro eased after the ECB announcement, while Spanish and Italian 10-year yields rose.

The U.S. Labor Department said initial jobless claims for the week ended July 28 increased by 8,000 to 365,000 from the previous week's upwardly revised 357,000. The four-week moving average was 365,500, a decrease of 2,750 from the previous week's revised average of 368,250. Economists had expected initial jobless claims of 370,000. Continuing claims for the week ended July 21 fell by 19,000 to 3.272 million.

 

The Commerce Department reported that factory orders fell by 0.5% in June, the third decline in four months, The Associated Press said. Orders for core capital goods declined by 1.7%, and demand for heavy machinery and computers dropped. Orders totaled $465.8 billion, up 42.5% from the recession low in March 2009.


In corporate news, Bristol-Myers Squibb (BMY) suspended a mid-stage study of its experimental hepatitis C drug BMS-094 because of a serious safety issue believed to involve heart failure, according to ISI Group analyst Mark Schoenebaum. BMS-094 was the sole reason behind Bristol-Myers' $2.5 billion acquisition of Inhibitex in January.

 

American International Group (AIG) is looking to buy back a large number of its shares from the government in a push that could make the U.S. a minority shareholder by fall and allow the insurer to fully repay its bailout sooner than expected, The Wall Street Journal reported.


228Comments
Aug 2, 2012 11:07AM
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Oink off fools!

 

Go Mitt go all these fools blow!

Aug 2, 2012 11:07AM
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Sorry, I'm givin Obammy 4 more years...I think his healthcare bill is fab...those who don't like it work in  the health industry and will likely see their costs and charges forced to come down...Love it!
Aug 2, 2012 11:04AM
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How about Government Motors? Government gets involved and stock has dropped 45% since the "new" company surfaced. However, all we have heard is how great the car business is doing!!  What bull sheet and what lies. If the treasonous btards in Washington say things are good or getting better believe exactly the opposite. I just want to know when the tanks are going to roll down Pennslyvania Ave. and arrest all of them for treason? You dont like socialism you say? Today we live under caplitalistic socialism..where business survive or fail not on sound business principles but on their relationship with our bought off politicians. I am sick of it!!!!!!
Aug 2, 2012 11:02AM
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Gary Myers: "So spending is unlikely to be cut, in fact it may increase depending on how much
pressure is put on by people in their districts and if they need money for thier next
reelection campaign. And there is not way they will raise taxes. The democrats might

but it will surely be blocked by the republicans."


Most likely, if the rhetoric hold true, the republicans will want government workers and the size of government reduced with a dismantling of government regulations "to free up industry," while at the same time increasing spending to support corporations, increase the military budget and reduce taxes collected (or increase taxes on the lower class).  They will most likely find this money from reducing entitlements and cutting social programs and education.  If this doesn't pencil out, they will probably borrow and grow the debt.

Aug 2, 2012 11:02AM
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In 3 years I will be able to quit my job cash out my 401K and begin drawing SS. Then I'll be out of the market and unconcerned. I'll live downtown without a car or a yard to mow. Maybe get a part time job for entertainment. Nothing to pay taxes on, just collect my money in the mail. The government may collapse the ecomomy, doubt I'll notice. Freedom's just another word for nothing left to lose.
Aug 2, 2012 10:55AM
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Divine, you should care about Romney-care - it tells us quite a bit about Romney, as do his past policy positions and associations.  The actions of a person and who they choose to surround themselves with tell you a lot more about that person than their words.  This is why Obama's ideas  and agenda should be no surprise to anyone - all you had to do was look at his past to know who he was and how he'd govern.

If Wilt Chamberlin came to your door to pick up your daughter and he told you he didn't believe in pre-marital sex, would you believe him?

Aug 2, 2012 10:53AM
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BARACK OBAMA  QUOTE  

 "THERE  WILL BE NO LOBBYISTS IN MY  WHITE HOUSE "

MEET ME ACROSS THE STREET IN THE COFFEE SHOP
 
Hey, CL...I love this one! Sort of reminds me of "Read My Lips"....HA!!
Aug 2, 2012 10:53AM
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Everything doesn't have to be cut... How about better managed? How about privatizing as much as possible. NASA has gone private (to some degree) why can't public schools and other public services??? Privatize everything that can be, let the churces do what private enterprise won't do, and then, and only then, let the government pick-up the slack... But, that slack should be like the government cheese of assistance -- nasty, and undesirable that people can't wait to get off it.

Aug 2, 2012 10:53AM
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Europe, Europe, blah , blah ,blah. Same old song and dance. Every week same old , same old crap . Might as well just reprint the page  from the last year or so . Nothing new to report , why not just print what's going on with the Olympics  or better yet just close the page down until something real important comes up . But wait, breaking news the dow is down because of recent unsettling news out of Eorope. Oh wait we already heard about that one. Plenty of seats at the Olympics , anybody up for a trip? Ahh can't, might miss news about Europe while you were there. Oh well !!!!!!!!!!!!!!!!!!
Aug 2, 2012 10:52AM
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THIS STORY HAS BEEN EDITED AND APPROVED BY THE ACLU/ ACORN FOR POLITICAL CORRECTNESS !

Barrack the RaCcoon
One day about a decade ago, while driving through Chicago, in my Mercedes S class Convertible, a RaCcoon suddenly jumped into the car.
I was very concerned about getting attacked ,  rabies, etc but the RaCcoon promptly  introduced himself as a Jr. Senator from Chicago. He explained that he had to jump out the window of Tony Rezko's house because the cops were coming to bust poor, old Tony,  for embezzlement !
Of Course Barrack the RaCcoon had nothing to do with it , he explained, he was just a guy from the neighborhood .I asked him why he just didn't jump into the beautiful , empty lot right next door to Rezko, instead of my car. He smiled and said don't worry about that , I got that covered!  Drive on.

  
Still in a daze, I asked this RaCcoon how did he ever learn our language ? Barrack the RaCcoon said he has a college degree with very, very high GPA. and he has a very high IQ, to boot ! I became skeptical and I asked him to prove this point , he became very feisty, said sorry,  his transcripts were sealed forever!  Just take his word for it, he's real smart.

I asked where we are going and he said to Bill Ayers birthday party out in another suburb about 1 hour away.

Silence reigned for a few moments , when Barrack the RaCcoon suddenly asked if I would like to hear his I have a Dream, vision. You means dreams of finding my Daddy, Barrack ?

 No, no - been there , done that.

What then, Mr. RaCcoon?

I have a dream  ----
Hope and Change would be someday coming to Amerika and a vision of a welfare utopia where no people of color or even white trailer trash, ever needed to work ! His dream of taking the non tax payers from 49% of the population to 70 % of the population !  Illegal's would be welcomed with a red carpet ! Free medical and they never , ever, need to pay a dime in taxes for their entire lifetime !  Not one dime and they don't even need to learn English !.

(For the sake of "fairness", we must note Strawberries are only $3.00 a PINT !) Thank you , illegal's, thank you!

To continue on the I have a Dream moment of Barrack the RaCcoon --

No person of color should EVER have to pay one single dollar of taxes !
Of food stamps and welfare increasing 45% under his regime.
Of creating a communists utopia of state run auto industry and health care !
Of racist black people controlling the government. Our attorney general being one of them.
Of lesbian, communist leaning , supreme justices.
He told me our real leader is George Soros, super commie.

When I asked , how in the world can the 30% who work pay for the upkeep of the 70% who do not, he simply smiled and said -- Think , Greece!

But yes, Barrack, Greece is going belly -up, isn't it ?

He smiled and replied, you learn fast, don't you !

We arrived at Bill Ayers hose and the "Rev" Wrong came to the car, asked what Barrack was doing with a honky, looked at me and said G DAMM America !

I drove off, hoping to distance myself from Barrack the RaCcoon.


Yes, I learned many things from Barrack the RaCcoon that day , the best being not to trust him with your money.
After he got out , I noticed my wallet was missing and replaced with small "change"  and a little card that said "hope".


oh,  that Barrack the RaCcoon,  I wonder where he ended up,  these days?


Copyright © 2012 Barrack Hussein Barry Soetoro Obama. All rights reserved

Aug 2, 2012 10:50AM
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The Stock Market - up one day on European hopes... down the next three on European realities.



Aug 2, 2012 10:46AM
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BARACK OBAMA  QUOTE  

 "THERE  WILL BE NO LOBBYISTS IN MY  WHITE HOUSE "

MEET ME ACROSS THE STREET IN THE COFFEE SHOP
Aug 2, 2012 10:46AM
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I don't care about Romney care, or his praise or lack of praise of european health care... The president does not dictate to us what will or will not be... He/they work for us. Free markets can fix most of the HC issues. Yesterday, it was said that women now get "free" birth control, mammograms, etc (LOL). Nothing is free -- someone is paying for it. Someone has to pay the overhead, technician, nurse, paperwork, doctor, etc... You think HC is expensive now, wait until it is FREE.
Aug 2, 2012 10:45AM
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Two things that are very unlikely to happen in Washington.

 

1.  There are certain areas where spending will never by cut.  Defense, SS and MC(and no they

are not entitlements), and any spending that would directly effect and congressperson or senators district or a group who makes large campaign donations to his or her reelection.

Or his or her current love interest.  So what does that leave.  Not very much.  The lobbyists will

take care of the rest.

 

2.  Raise taxes.  That is a death nell for any congressperson or senator. 

 

So spending is unlikely to be cut, in fact it may increase depending on how much

pressure is put on by people in their districts and if they need money for thier next

reelection campaign.  And there is not way they will raise taxes.  The democrats might

but it will surely be blocked by the republicans.

 

Aug 2, 2012 10:44AM
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For a supposedly dyed in the wool conservative, he created Romneycare as governor.  So what is he?  A liberal conservative, or a liberal masquerading as a conservative?
Aug 2, 2012 10:44AM
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We don't get too many political adds for Obama here .......... Can anyone tell me is he still promising transparency? I know we didn't get it yet so it must still be on the list. Has he said why it is taking so long?
Aug 2, 2012 10:38AM
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 MAX 

OBAMA QUOTE  "I WILL CUT THE  DEFICIT  IN HALF IN MY FIRST TERM"

YEAH,,,,,,,,,,,,,RIGHT,,,,,,,,,,,,,,ADDED     $5,500,000,000,000.00 

 HOWS THAT HOPPIE  CHANGIE THING WORKING OUT ??????????
Aug 2, 2012 10:37AM
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America - Eat Mor Chikin


Mayor of Chicago - Eat Mor Dikin

Aug 2, 2012 10:36AM
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This election is not about Romney... It is about changing the direction our economy is going. Less government vs more government. As long as we elect a congress and a senate to help remind him of his role, we can return America back to prosperity fairly quickly. BTW I didn't like Bush/Cheney spending policies either. Bush gave us that "compassionate conservative" crap, which I find highly offensive because conservatism is the epitome of liberty, freedom and individualism. What greater compassion can you show toward people? Set my people free!!!
Aug 2, 2012 10:36AM
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"Our debt is nothing more than un-paid taxes, so every day that Congress blocks any Bills that would pay down our debt they are raising taxes, our tax revenues are averaging 4.6% less than the last 30 year average, while the debt skyrockets, by not raising taxes were raising taxes. we need to stop arguing and stop this stupidity."

This just isn't true.  Look at the average 5 of taxes collected, or even the highest 5 we have ever collected, and it's never going to cover today's spending.  we are currently collecting something like 16% of GDP and spending close to 25% (MG lists the stat all the time).  I'm more than willing to meet you at 20%.

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