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.

By Charley Blaine Jun 24, 2013 4:37PM
SStock market © Digital Vision Ltd./SuperStockEarly Monday, it looked as if the financial world was coming unhinged.

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.

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50Comments
Jun 24, 2013 5:46PM
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Same old Wall Street BS. Crude oil rises on supply issues. Does Wall Street think that people are stupid? We have record supplies of oil and it would take weeks to draw it down and they raise oil on supply issues. This is so stupid and it shows that they will use anything and everything for an excuse to raise oil. Every week now there is another lame excuse to raise oil prices and I am so sick of their BS. Washington needs to wake up and crack down on these thieves once and for all.
Jun 24, 2013 5:27PM
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fundamentals are strong?  Trillions and Trillions of debt. State, local, federal, and a trillion in college loans.  And fundamentals are STRONG????  
Jun 24, 2013 5:48PM
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Ha Ha

               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.

Jun 24, 2013 5:08PM
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Keep your head above water and paddle your way upstream, one eye on your destination and the other eye on the "bank". Good luck. It is Summer so enjoy yourselves. Some good movies coming out. Thank goodness no election.
Jun 24, 2013 5:11PM
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You need to keep asking yourself - why did you buy the stock you have?  If it is based on emotion or 'herd reaction' then get out NOW.  If you had sound reasoning and you don't need the money for 6 or more years then have a drink, HANG ON and spend your time on other productive activities.
Jun 24, 2013 6:15PM
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ah, do I really need to comment at all on this market thing now? I would but I'm too busy actually laughing how Edward Snowden (a liberal in case you liberals didn't know, I mean look at the man, glasses bad facial hair, that air of smug arrogance well, you know) nuff said, but the fact that he's running circles around the osama administration hopping like a knight on the chessboard from one country to another, to another just making a fool outta obama and the justice dept, nsa etc is a testament to the inept obama regimes ability to handle this problem, big time bungling actually.... outmaneuvering them, left and right and the countries he's 'vacationing' in just are laughing too, they're not arresting him, or detaining him, it's just laughable, obama's laughable, this economy is laughable, horrid and just a catastrophic clusterphuck but at least we can laugh, it's all we've got left, you idiots voted for this, what do you want? did you expect?? This nightmare is worse than I expected, but.....even the libs are turning on that phony muslim messiah, how funny is that!
Jun 24, 2013 6:18PM
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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.  

Jun 24, 2013 4:48PM
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Who cares what happens to the portfolio of any sucker investing in stocks or other "representations" of value?

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.

Jun 24, 2013 5:23PM
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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.

Jun 24, 2013 8:51PM
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BenghazObama

HillawryPimpbiz

Holder'sBorderMafia

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?

Jun 24, 2013 5:47PM
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I dont know that I would call a 10 to 1 down day merely bad.
Jun 24, 2013 9:31PM
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By the end of Obama's 2nd term the national debt will be 20 trillion and the dollar will no longer be the world's reserve currency.  This will cause a economic disaster that will make 2008 look like a walk in the park.  Will be a run on the banks and inflation from hell.  If your smart, get the hell out of bond, stocks, and banks.
Jun 24, 2013 10:13PM
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Who's gonna be the first to jump ?
Jun 24, 2013 7:26PM
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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.

Jun 24, 2013 9:26PM
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Things will get worse once China starts to unwind! improving here NO!,

Jun 24, 2013 5:46PM
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2013 gain is gone and part of 2012 now. Wall Street is raping ts own investers over nothing!! Nobody is concerned about what the Fed has said or China. Its just words!! Plus they are not about to ever ever ever do something to derail a economy. Its the last thing they would ever do!! the problem is you have people and portfolio managers who fall for any rumor or news happenning.  This is exactly why no body trust Wall Street or want to invest in stocks because it is maniplated where the only winner is Wall Street!! 
Jun 24, 2013 7:37PM
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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!!

Jun 24, 2013 7:49PM
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A little somethin' from the oldies archives .... sing it in harmony ...

 

We've only just begun to dive
Red ink and promises
A diss for luck and we're on our way
We've only just begun

Before the risin' sun, we cry
So many stocks to choose
We'll start out walkin' and learn to run
And yes, we've just begun

Sharing horizons that are new to us
Watching the signs along the way
Talkin' it over, all 150 million of us
Losing together day to day, together

And when the evening comes, we frown

So much of strife ahead
We'll find a place someday where there's room to grow
But for now, we've just begun

Sharing horizons that are new to us
Watching the signs along the way
Talkin' it over, all 150 million of us
Losing together day to day, together, together

And when the evening comes, we frown
So much of strife ahead
We'll find a place someday where there's room to grow
But for now, we've just begun

Jun 25, 2013 9:40AM
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What will all the doom and gloom idiots say if the loses of Monday are made up today?  Nothing good.
Jun 25, 2013 2:12AM
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Plunge protection to keep façade going. Fri 6/28 quantum dawn 2 cyber attack drills on banks and Wall St this could be in conjunction w/bust.
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