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Post-Holiday Swoon Rips Stocks
1Grumpy traders sent stocks plunging after the long weekend. The S&P 500 dived 4.2%, the Dow 4.1%, the Nasdaq 3.9%. Losers mashed winners as fear spiked. Leading groups like HMOs fell, as did laggards like chips and biotechs. Volume remained below average as it has for the last few weeks, offering cold comfort. More on B2
10-Year Yield Slides Beneath 4%
2Treasuries blasted to new multiweek highs, sending 10-year yields toward 40-year lows, as investors ran to safety from falling stocks and fresh data showing meager U.S. factory growth. The 10-year T-note yield plunged 16 basis points to 3.97%. The dollar fell to multiweek lows on U.S. weakness. Japanese investors also repatriated yen in response to weakness there.
Factory Growth Gauge Stalls Out
3The ISM U.S. manufacturing activity index stayed stuck at 50.5 in Aug., stoking fears the recovery is in danger. Any level above 50 signals expansion, but the index was well below forecasts. Only 8 of 20 industries grew. The group's new orders index -- a gauge of future factory output -- was 49.7, down from July's 50.4 and well below June's 60.8. More on this page, A2
Nikkei Index Falls To 18-Year Low