Markets plunge again!

Asian stocks last night followed US stocks, down sharply. During trading, down 5% was common among the stock markets. European stocks continued with Dow futures this morning indicating a sharply lower opening.

Dow is now down 277 taking it below 9K, decliners ahead of advancers almost 4-1 & NAZ dropped 43. S&P 500 FINANCIALS INDEX is down 6½ to 195, the Alerina MLP Index is down 12 (very big drop for AMZ) to 207, the Dow Jones REIT Index is down 5 to 152 (after yesterday's big drop) & high yield (junk) bond finds are also headed lower.

Oil is down again. Its down 9 in just 2 days on worries about sagging economies buying less oil.

CLZ08.NYM

Crude Oil Dec 08

....61.41

.... 3.89 (6.0%)

United States Oil Fund is an ETF which tracks oil. Below is their almost 3 year track record showing how far oil has risen & retreated this year, back to 2 year lows.


USO --- 3 years




As expected rate cuts around the world keep coming. The Bank of England cut its lending rate 150 basis points, the European central bank cut its rate 50 basis points (it takes a lot to get them to cut) & the Swiss policy makers cut their lending rate 200 basis points at an unscheduled meeting. These large rate cuts are highly unusual & indicate how seriously central bankers are taking the global slowdown affecting their economies.

•Bank of England Leads European Central Banks in Rate Cut as Economies Slow


New jobless claims dropped slightly to 481K last week but still remain very high as 400K is considered the worrisome level. The number of people receiving benefits lags, it increased to 3.84MM, the highest level in 25 years. Tomorrow the Oct unemployment numbers will be reported, everybody is dreading what they will say.

• Jobless claims drop slightly from elevated level- AP

Retail sales were awful, although Wal-Mart (WMT), a Dow stock, managed a 2.4% same store sales gains (stock up 66¢).

•Macy's, Target, Gap October Sales Fall; Wal-Mart's Climb, Beating Forecast


Blackstone Group (BX) reported a huge $½B loss in Q3, its worst since going public last year. The stock was sold at 27 & rose to 35 very quickly as it was one of the sexy stocks (the darling of Wall Street) last year, just before the credit crisis was recognized. Now it can be bought for $7.63. I'm not showing the chart because nobody wants to see it.

•Blackstone Misses Estimates, Reports Biggest Loss Since IPO; Shares Slump


Since I began writing, Dow dropped another 100 taking it far below 9K. Deary economic reports will keep coming, the unemployment one tomorrow is the big one everybody fears.