Stocks rebound from a horrible day to a bad day
Worries about China and rising interest rates batter investors for much of the day, with the Dow falling as many as 248 points. Then the bargain hunters played their hands.
China's benchmark Shanghai Composite Index fell 5% to 1,963, extending its loss for the year to 13.5%. Investors were obviously deeply concerned about the financial crisis that's taken hold.
That slump reverberated all over the world and was a big reason why U.S. stocks slumped so badly at the open, with the Dow Jones industrials ($INDU) off as many as 248 points.
But bargain hunters came back into the market, and the Dow's loss was trimmed to just 27 points to 14,755 at 2:40 p.m. ET. But selling resumed, pushing the blue-chips to a 140-point loss to 14,650.
The Standard & Poor 500 Index ($INX) was off 19 points to 1,573, not a good day, but the index had been off as many as 32 points. Helping the index was a sizable gain for Tenet Healthcare (THC), after it announced it's buying Vanguard Health Systems (VHS) for $4.3 billion deal.The Nasdaq Composite Index ($COMPX) rebounded from a 63-point loss to a decline of 36 points to 3,321. Some of that decline was due to Apple's (AAPL) briefly falling nearly to $398. It finished at $402.34, down $11.16.
Probably the biggest reason for the rebound was that interest rates moved lower -- after several Federal Reserve officials warned that interest rates were not going to soar any time soon. The 10-year Treasury yield moved down to 2.531% after hitting 2.657% in the morning -- the highest yield since August 2011.
The rate decline was due in part to speeches by Bill Dudley, president of the Federal Reserve Bank of New York, and Narayana Kocherlakota, president of the Minneapolis Federal Reserve Bank. Both downplayed the idea the Fed was all set to start pushing interest rates higher.
Richard Fisher of the Dallas Federal Reserve Bank warned off what he called "feral hogs" of the financial markets. Fisher told the Financial Times that traders should not expect the central bank to keep interest rates low indefinitely.
Still, he said, any move either to trim the Fed's bond-buying program would be done cautiously. "I don’t want to go from Wild Turkey to 'Cold Turkey’ overnight,'" he told the newspaper.
Monday, however, was hardly memorable.
The declines were the third in the last four sessions for the Dow and the S&P 500 and fourth straight for the Nasdaq. The Dow, S&P 500 and Nasdaq are down 5.5%, 6.6% and 5.9%, respectively, from their intraday highs on May 22.
The Dow is still up 12% for the year; it had been up 17.6% on May 28. The S&P 500 and Nasdaq have seen their gains for the year shrink from 17% and 16%, respectively, on May 21 to 10.4% and 10.1%, respectively.
Gold (-GC), silver (-SI) and platinum (-PL) all moved lower. Gold ended down $14.90 to $1,277.10 an ounce. Gold is off 8.3% in June alone and 24% for the year. Copper (-HG) fell to a three-year low of $3.0245 a pound.
Crude oil (-CL) was up $1.49 to $95.18 a barrel.
Only 12 of the 30 Dow stocks were higher, led by Johnson & Johnson (JNJ) and Microsoft (MSFT). (Microsoft owns and publishes Top Stocks, an MSN Money site.)
Bank of America (BAC) and Hewlett-Packard (HPQ) were the laggards. Meanwhile, 121 S&P 500 stocks were higher and 25 stocks in the Nasdaq-100 Index ($NDX). The index was down 16 points to 2,861.
More on Top Stocks
Bargain Hunters? Get real. This is the corporations buying back their own shares to keep stock prices high. Ben provides the cash. Be careful its a rigged game.
Any "fundamentals" that appear to be solid are merely feeding indirectly off of the increase in the money supply. Take that stimulus away and we will quickly see what the "fundamentals" really are.
The Fed simply bought time for our incompetent government to institute a real plan. Since the govs have done nothing in 6 years and show no sign of changing that, the Fed has the choice of taking all the blame or stepping out and letting Washington share the shame.
Until people can get jobs that pay a living wage, nothing has been fixed. The wealth level will have to settle back to the point it was prior to the inflation of housing values. Unfortunately the distribution of that wealth has further concentrated since then as has the availability of real jobs.
We usually have a big war at this juncture to take peoples eye off of the real issues and simultaneously reduce the excess population. Not an Iraq or Afghanistan, but a real WWII type disagreement. Short of that happening, we had all better get used to getting by with less.
You need to be investing in what you know and control. The rest of the time, you better keep your eye on the federal control freaks via your congressional delegation.
Water you garden and let the "plants", grow. Push some buttons and "cure" the obvious in "markets". This is such a fiasco in same "manipulation"...... it is a joke when some idiot like Blaine says "bargain hunters playing their hands"...... entire BS.
IRS (Idiot, Racist, Stupid)
NSA (Nazi Systemic Approach)
Snowden (Where is the snow here?...)
Stock Racket (Who is funding the Crooked Street Thieves?)
What country do we live in???? Babylon?
Hell, i think most of the problem is that information, buying, and selling is way too quick.. which just begs for panic.
...and , fo course, just way too many day traders into get rich quick...remember when the stock market was actually INVESTING? Giving our money to a company and sharing in the profits over the years? Not just buying, it goes up a penney, selling, it goes down 2 cents, buy again.
Things will get worse once China starts to unwind! improving here NO!,
It was a complete waste of time investing in the first half of this year already!! Cd'ss blew away the stock market so far!!
Copyright © 2014 Microsoft. All rights reserved.
These companies won't soar like other plays in the sector, but they make for great income sources.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.