Dow Jones and S & P 500 fell to levels not seen in almost 12 years Monday as investors continue to fear that government efforts to stem the recession will not be enough.
The Dow Jones industrial average (INDU) lost 250 points, or 3.4%, ending at its lowest point since May 7, 1997. The S & P 500 (SPX) index lost 26 points, or 3.5%, ending at its lowest point since April 11, 1997.
The Nasdaq composite (COMP) lost 53 points (3.7%). The index of fuel technology has remained better than the rest of the market so far this year, the closure of the lowest points since November 20, 2008.
“It is fear-based selling,” said Dave Hinnenkamp, CEO of KDV Wealth Management. “The fact that we are playing these minimum number of years he said he did not know where the bottom of this thing is.”
Stocks gained in the morning on reports that the government can increase its participation in Citigroup briefly calmly, as she fears that the troubled bank would be nationalized. But the early advance petered out quickly, as the concerns of recent weeks returned.
“It’s not just that nobody wants to buy now,” said Ron Kiddoo, chief investment officer for Cozad Asset Management. “The skepticism is back,” said Kiddoo. “I think we need to hear some optimistic talk of our leaders and soon.”
Stocks are now more vulnerable to the main gauges to the underside of several years, said Gary Webb, Webb, CEO of Grupo Financiero. “The concerns about how long it will take for the government programs that have an impact and worries about the health of banks and autos are all there,” said Webb.
But there just the day to day reality that many investors are losing money and do not know when it will stop losing money, he said.
After the close of trading, JPMorgan Chase said it was his court divided 5 cents per share from 38 cents per share today.
Tuesday preview: Economic reports are due on housing prices and consumer confidence.
The S & P / CaseShiller Home Price Index, which is due before the market open is expected to have fallen by a record 18.25% annual pace in December, according to a consensus of economists surveyed by Briefing.com. The index tracks home prices in 20 major metropolitan areas.
The Conference Board, February Consumer Confidence Index is expected to have fallen to 36.0 in February from 37.7 in January. That reading was the lowest since the Conference Board began tracking the index in 1967.
A pair of quarterly earnings report Tuesday morning retailers. Dow component Home Depot (HD Fortune 500) to earn 15 cents per share versus 40 cents a year ago, according to a consensus of analysts surveyed by Thomson Reuters. Target (TGT, Fortune 500) is expected to have earned 83 cents versus $ 1.23 a year ago.
Federal Reserve Chairman Ben Bernanke begins the first day of their two-day semiannual testimony to Congress on monetary policy. On Tuesday, speaking at a hearing of the Senate Banking Committee on Wednesday and the House Financial Services Committee hearing.
On Tuesday evening, President Obama refers to the joint session of Congress, with his speech due to start at 9:00 pm Eastern Time.