Friday, February 29, 2008

Stocks decline on negative economic news

Stocks sold off big on negative economic news. Dow is down 217, decliners over advancers 5-1 & NAZ is down 40. Consumer spending was weak. For the last 2 months, consumer spending was similar to late 2001 & the 2 months following Hurricane Katrina. Recession fears are key drivers in today's markets. This is really a part of a stream of negative news in recent weeks. The 100+ oil prices may be hitting the pumps soon with growing talk of $4 gas. Gloomy news will probably be with us well into the March.

American International Group (AIG), a Dow company, is down 3.37 on a negative report which includes a $5B+ loss in Q4. Dell's (DELL) earnings from last night are another major drag on the markets. Starting Feb at 12.4K, Dow has largely been in negative territory. The recent rally put it in the black, but now it's slipping back to near it's starting point.

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