Dow down over 600!

[sluggo72]

Didn’t there used to be some safeguard to prevent these runs? I thought there was an automatic freeze in trading put in place years ago if it dropped like 500?

I think this is still in effect today, but not points % , I dont think we are even close.


What are market circuit breakers? 7:56 PM ET Fri, 8 Jan 2016 | 01:02
Stock exchanges attempt to ease panic selling by taking certain steps to halt trading. These moves are called market circuit breakers—or collars. Under extreme conditions that could trigger market disruptions, exchanges can invoke Rule 48 to make it easier and faster to open stocks.

When do market circuit breakers kick in?

Getty Images
Trader on the floor of the New York Stock Exchange.
Under the revised rules approved by the SEC in 2012, market-wide circuit breakers kick in when the S&P 500 Index drops 7 percent (Level 1), 13 percent (Level 2), and 20 percent (Level 3) from the prior day's close.

A market decline that triggers a Level 1 or Level 2 circuit breaker before 3:25 p.m. will halt market-wide trading for 15 minutes, while a similar market decline "at or after" 3:25 p.m. will not halt market-wide trading.

 

[bdgan]

Sorry, I was talking about the 10-year Shiller
http://www.multpl.com/shiller-pe/

The last two times it has been in this territory there have been huge drops within a year or two

But fixed income alternatives were much better back then. Many high dividend stocks are yielding 4% at these prices. That's double what you can get in treasuries. Add the strength of the economy and lower taxes. I agree that stock prices were a bit high but not so much when you look at them relative to interest rates.

 

[WDLion]

Please take this opportunity to remember that Wall Street has a morals problem.

Fixed it for you.

 

[psuro]

Dow Jones down 1178 today.

Looks like I picked the wrong week to stop sniffing glue.

 

[EPC FAN]

Down 1,175 at the close. 1,843 in two days.

 

[PSU Dave]

Dow Jones down 1178 today.

Looks like I picked the wrong week to stop sniffing glue.

I blame it on the Eagles.

 

[bluewhiteApos]

I blame it on the Eagles.

The Dow, or sniffing glue?

 

[Columbus_Lion]

Stock market is up annually when the NFC wins the Super Bowl

http://www.foxbusiness.com/markets/2018/02/02/super-bowl-why-wall-street-is-rooting-for-eagles.html

 

[BobPSU92]

 

[mrtailgate]

I'm not sure what the expectations are but tax cuts alone should give year over year earnings a big boost.

The tax cuts will produce distorted results for many companies over a two year period. In year 1, many companies will report a tax charge based on the revaluation of deferred tax assets which reflects that future tax deductions will have diminished benefits when realized. Year 2 will then reflect a reduced charge post reval of deferred tax assets. The results will be reversed if companies had net deferred tax liabilities that require similar revaluation.

Although the earnings could be viewed as a one time year on year, the more critical issue is that cash flows are permanently enhanced and that values are really a function of discounted earnings so that earnings increase each year under the tax cuts should provide substantial value.

 

[BobPSU92]

Dow currently down 644.

CNBC headline: "Dow plummets 650 points as higher rates keep Wall Street on edge"

VOLATILITY.

 

[TenerHallTerror]

Dow currently down 644.

CNBC headline: "Dow plummets 650 points as higher rates keep Wall Street on edge"

VOLATILITY.

I blame Jimmy Carter

 

[itsofficial101]

Dow currently down 644.

CNBC headline: "Dow plummets 650 points as higher rates keep Wall Street on edge"

VOLATILITY.

The Atlanta Fed has 1Q at 5.4% GDP. The latest jobs reports are excellent. The new tax law has been a huge windfall for the American people (3 million workers already have received $1000 or more bonuses or $1 /hr or more wage increases, trillions of dollars overseas are being repatriated including $800B from Apple alone, and companies are announcing billion dollar+ investments in the US pretty frequently now). The Fed HAS to raise interest rates in this environment. The growth is too strong to keep the artificially near zero rates of the last decade that have inflated the stock market. There is too much good economic news to not pop that artificially inflated bubble now after a decade of horrible growth.

 

[BobPSU92]

I blame Jimmy Carter

FOOTBALL.

 

[NJPSU]

The Atlanta Fed has 1Q at 5.4% GDP. The latest jobs reports are excellent. The new tax law has been a huge windfall for the American people (3 million workers already have received $1000 or more bonuses or $1 /hr or more wage increases, trillions of dollars overseas are being repatriated including $800B from Apple alone, and companies are announcing billion dollar+ investments in the US pretty frequently now). The Fed HAS to raise interest rates in this environment. The growth is too strong to keep the artificially near zero rates of the last decade that have inflated the stock market. There is too much good economic news to not pop that artificially inflated bubble now after a decade of horrible growth.

The Atlanta FED already reduced that 1st qt GDP down to 4% 2 days ago. Expect it to be reduced drastically again.

Last years actual GDP growth was under 3%.

 

[itsofficial101]

The Atlanta FED already reduced that 1st qt GDP down to 4% 2 days ago. Expect it to be reduced drastically again.

Last years actually GDP growth was under 3%.

Haven't seen the revision but the point remains even at 4% (nearly double the norm in the last decade). The economy is strong and still strengthening. Have to keep popping that artificial rate buoyed bubble.

 

[NJPSU]

Haven't seen the revision but the point remains even at 4% (nearly double the norm in the last decade). The economy is strong and still strengthening. Have to keep popping that artificial rate buoyed bubble.

Last year was full of those rosey projections too but when the dust settled it was the same under 3% growth.

 

[itsofficial101]

Last year was full of those rosey projections too but when the dust settled it was the same under 3% growth.

Mostly because of the 1.2% 1Q inherited from the previous admin. Then it jumped and appears to still be gaining steam. I suppose we will see soon enough but you must at least be willing to concede that the rise in rates is due to an increasing confidence in the strength of the economy.

 

[WDLion]

The Atlanta Fed has 1Q at 5.4% GDP. The latest jobs reports are excellent. The new tax law has been a huge windfall for the American people (3 million workers already have received $1000 or more bonuses or $1 /hr or more wage increases, trillions of dollars overseas are being repatriated including $800B from Apple alone, and companies are announcing billion dollar+ investments in the US pretty frequently now). The Fed HAS to raise interest rates in this environment. The growth is too strong to keep the artificially near zero rates of the last decade that have inflated the stock market. There is too much good economic news to not pop that artificially inflated bubble now after a decade of horrible growth.

I though Joseph Goebbels was dead.

 

[itsofficial101]

I though Joseph Goebbels was dead.

I forgot that posting great economic news for Americans could trigger those rooting against us right now. My bad, the stock market is collapsing! Run for your lives!

 

[WDLion]

I forgot that posting great economic news for Americans could trigger those rooting against us right now. My bad, the stock market is collapsing! Run for your lives!

I'm rooting for all Americans, not just the upper crust.

 

[aalion]

then you should be thrilled with the very low unemployment.

 

[WDLion]

then you should be thrilled with the very low unemployment.

You mean the 50% of employed Americans that live from week to week. The stock market means zilch to them.

 

[itsofficial101]

You mean the 50% of employed Americans that live from week to week. The stock market means zilch to them.

Those people don't have 401K's? Are you sure?

 

[WDLion]

Those people don't have 401K's? Are you sure?

How do people making 8 to 10 dollars per hour with no or very little benefits have money to put into a 401k?

 

[itsofficial101]

How do people making 8 to 10 dollars per hour with no or very little benefits have money to put into a 401k?

The median US income is over $31K. That is over $15/hr. And yes, at $15/hr and the majority of American families with 2 incomes (median family income is $59K), you better have a 401K.

 

[Media Fan]

You mean the 50% of employed Americans that live from week to week. The stock market means zilch to them.

For many years, the stock market has been a leading indicator. They may not directly own stocks, but they are employed. Employers do poorly, You can figure out the rest. If this is simply,as they say, a correction, not a big deal . Here’s hoping.
You can’t be employed without an employer.

 

[sluggo72]

it will be over sooner rather than later. we have a 10%+on a closing basis correction to satisfy all the technicians out there. This is still a secular bull market, imo

 

[WDLion]

The median US income is over $31K. That is over $15/hr. And yes, at $15/hr and the majority of American families with 2 incomes (median family income is $59K), you better have a 401K.

A significant percentage households are way under that figure.

 

[aalion]

Still better to be employed than not (I think).

 

[BobPSU92]

SHOW. ME. THE. MONEY.

 

[WDLion]

Still better to be employed than not (I think).

My only point is how the market is doing isn't an accurate indicator of how many Americans are doing.

 

[itsofficial101]

A significant percentage households are way under that figure.

Yes, half of them. That is what median means. I showed the median because you had said 50% of Americans. Also, if you root against the upper crust then you are rooting against the lower half also. Who do you think creates the most jobs?

 

[BobPSU92]

Obviously we are facing Armageddon. The Dow is crashing and the Eagles won the Super Bowl.

 

[WDLion]

Yes, half of them. That is what median means. I showed the median because you had said 50% of Americans. Also, if you root against the upper crust then you are rooting against the lower half also. Who do you think creates the most jobs?

Good grief ! I'm not rooting against anyone.
Where do you get that from?

 

[JeffClear]

The Atlanta Fed has 1Q at 5.4% GDP. The latest jobs reports are excellent. The new tax law has been a huge windfall for the American people (3 million workers already have received $1000 or more bonuses or $1 /hr or more wage increases, trillions of dollars overseas are being repatriated including $800B from Apple alone, and companies are announcing billion dollar+ investments in the US pretty frequently now). The Fed HAS to raise interest rates in this environment. The growth is too strong to keep the artificially near zero rates of the last decade that have inflated the stock market. There is too much good economic news to not pop that artificially inflated bubble now after a decade of horrible growth.

The problem with the tax cuts is they are being paid for by adding to the deficit.
It feels good now but it won’t once the bills come due.

 

[aalion]

My only point is how the market is doing isn't an accurate indicator of how many Americans are doing.

And my only point is that whether driven by stock market, tax cuts, global warming, or the Eagles, it seems like there is less unemployment out there. I was commending you for being concerned about all Americans, and I am sure you are happy that they are employed.

Maybe it isn't a relevant point in this thread or a thread with this title. I thought it was. Just like PSU isn't a 1 sport athletic department, macro-economic metrics are diverse as well.

 

[itsofficial101]

It just seems that many are taking lots of joy in posting DOW losses

 

[WDLion]

It just seems that many are taking lots of joy in posting DOW losses

I posted nothing about the losses.

 

[phillybillyreprise]

The median US income is over $31K. That is over $15/hr. And yes, at $15/hr and the majority of American families with 2 incomes (median family income is $59K), you better have a 401K.

If the median income is $15/hour, half make less.