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USA stock market daily report by Millenium Traders (October 7, 2008, Tuesday, 10.30 p.m. GMT) 7 October 2008 Source: www.millennium-traders.com
It first appeared as though the markets were heading into higher territory today and the key word is 'appeared. Investors and Day Traders watched as the markets slowly sunk, before their eyes. At the closing bell, major market indices ended the session at their lows of the day and triple digit losses were in place. The DOW gave up over 500 points again by the end of the trading day today. Main street America got some first hand reality check today. Americans' retirement plans lost as much as $2 trillion during the past 15 months, Congress' top budget analyst estimated Tuesday which was "Unlike Wall Street executives, America's families don't have a golden parachute to fall back on," said Rep. George Miller, D-California, the panel chairman. "It's clear that their retirement security may be one of the greatest casualties of this financial crisis." Top execs of AIG were pounded today by Congressional leaders for enjoying a one-week retreat at the St. Regis Resort in Monarch Beach near San Diego, California at a cost of $440,000, just days after the bailout was initiated. Representative Elijah Cummings, Democrat from Maryland, a senior committee member, described the expensive retreat as "outrageous." He said it included visits to the spa and golf course with $10,000 in so-called "leisure dining" which he suspected was actually drinking with lodgings that cost more per night than some of his constituents spend on their monthly mortgage payments. "The American people are paying for that and they're very upset," said Cummings. Replies from AIG members replied that he was unaware of the retreat and that it "seems very inappropriate." "This (bailout) was a direct result of the mistakes made by Mr. Cassano," Waxman said, blaming him for putting AIG in a situation where it had a $60 billion debt without the money to pay it. "Yet even today, he remains on the company payroll, receiving $1 million a month." Comments from NYSE CEO today: doesn't think SEC wants Uptick Rule; sees market Downturn near bottom; expects Choppy Waters in next couple weeks; with credit markets stalled, feels like recession; could be fairly dire if Credit markets don t loosen; doesn't see anything beyond lifting Short-Sell Ban; Bailout not silver bullet, but necessary first step; considering individual stock circuit breakers. Economic data released today: Consumer Credit: U.S. Consumer Credit declines for first time in 10 years during August; U.S. Consumer Credit August decline is first drop since January 1998; U.S. August Consumer Credit decreased $7.9 Billion; July Consumer Credit Revised to up $5.2 Billion from up $4.6 Billion. Rate of borrowing by Americans declined for the first time in 10 years during the month of August which is a clear sign of building stress on household finances. According to a report from the U.S. Federal Reserve, outstanding consumer credit decreased by $7.9 billion during the month of August to $2.577 trillion. Data follows a $5.2 Billion consumer credit increase during July which is an upward revision from a previously estimated $4.6 billion increase. August credit fell far short of Wall Street predictions with a prior forecast of $6.0 billion increase in credit for the month. The 3.7 percent drop was the first decline since January 1998 when credit fell 4.3 percent or $4.7 billion. Slowdown suggests financial stress on U.S. households and borrowing tends to slow with softer spending during a weakened economy. Consumer credit data excludes home mortgages and other real estate-secured loans as these tend to be highly volatile, month to month and are frequently revised. Revolving debt which mostly reflects credit-card financing fell for month of August at a seasonally adjusted annual rate of 0.8 percent or $612 million to $969 billion. Credit during July rose 5.0 percent or $4.0 billion which is revised from an originally reported increase of $3.9 billion. Some households relied on credit cards to fight off higher food and oil prices, declining home values and tightened credit conditions. Non-revolving credit decreased during month of August at a seasonally adjusted annual rate of 5.4 percent or $7.3 billion to $1.608 trillion. Credit during July climbed 0.9 percent or $1.2 billion which was revised from originally reported $678 million advance. Non-revolving credit is mainly automobile loans. FOMC Minutes: Cite risks to growth, inflation; intensified financial market strains could hurt economy; expected inflation to moderate this year, next year; inflation outlook remains highly uncertain; credit, energy, housing seen weighing on economy; lowered forecast slightly for 2009 real GDP; saw real GDP rising slowly in 4Q, faster in 2009; saw GDP growing less than potential; some FOMC Officials indicate decline of home prices might slow. At the NYSE closing bell on the New York Stock Exchange, here is how the major world indices and major U.S. stock indices ended the session on the world market as well as the emerging markets including the stock market closing bell price: DOW (Dow Jones Industrial Average) triple digit loss of 508.39 points on the day to end the trading session at 9,447.11 NYSE (New York Stock Exchange) triple digit loss of 366.53 points to end the trading session at 6,388.38 National Association of Securities Dealers Automated Quotations (NASDAQ) triple digit loss of 108.00 points to end the trading session at 1,754.01 S&P 500 loss of 60.66 points to end the trading session at 996.23 FTSE All-World excluding U.S. loss of 5.25 points to end the trading session at 169.10 FTSE RAFI 1000 triple digit loss of 268.85 points to end the trading session at 3,934.05 BEL 20 (BEL20) loss of 58.9 points to end the trading session at 2,508.69 CAC 40 (CAC40) gain of 20.24 points to end the trading session at 3,732.22 FTSE100 (UKX100) gain of 16.03 points to end the trading session at 4,605.22 NIKKEI 225 (NIK/O) triple digit loss of 317.19 points to end the trading session at 10,155.90 |
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